Trading performance

Breedon continues to trade strongly, with product volumes in the first 10 months ahead of the comparable period in both England and Scotland. 

Underlying trading conditions in England remain strong.  In Scotland, road spending remains subdued but several large contracts are about to commence which will run through next year and into 2017.

For the 10 months to 31 October 2015, Group sales volumes of aggregates increased by 19 per cent, asphalt by 23 per cent and concrete by 20 per cent compared to last year.

Unaudited Group revenue for the same 10 months increased by 22 per cent to approximately £274 million.  Lower hydrocarbon costs have continued to benefit performance in the second half of the year but forward market pricing is now starting to reflect these lower costs.

Assuming that weather conditions remain favourable for the remainder of the year, the Group’s underlying EBITDA for the full year is expected to be at the top end of current market expectations(*1). 

Outlook

The outlook remains positive, with a number of projects already secured for next year.  We are confident of making further progress in 2016 and, assuming that completion of our acquisition of Hope Construction Materials takes place as expected in the second quarter of next year (as announced separately today), our progress is likely to be significantly enhanced.

We will announce our preliminary results for the year to 31 December 2015 on 9 March 2016.

(*1) Market expectations for underlying EBITDA are believed to range from £50 million to £53 million).