Share price:

Share this page

Breedon releases trading update

Trading performance

Breedon delivered a strong performance in the 10 months to 31 October 2016.  Both volumes and revenues in the former Breedon Aggregates business were ahead of the prior year, supplemented by a three-month contribution from the former Hope Construction Materials business (“Hope”).

Including Hope, Group sales volumes of aggregates increased by 25 per cent, asphalt by 1 per cent and concrete by 96 per cent.*

Total Group revenue for the 10-month period increased by 31 per cent to approximately £361 million.  The integration of Hope is progressing well, with synergies coming through earlier than had previously been expected.

Assuming that weather conditions remain favourable for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be ahead of current market expectations.**

 

Acquisition of the Sherburn Minerals Group

Furthermore, Breedon has today announced the acquisition of the Sherburn Minerals Group (“Sherburn”) for a total consideration of up to £15.7 million, funded from the Group’s existing resources.  Sherburn is a heavyside building materials business with operations in the north of England and Scotland, supplying aggregates and ready-mixed concrete, together with cement from two import terminals in Blyth near Newcastle and Dundee in eastern Scotland. 

Further information on this acquisition is provided in the separate announcement released by the Group today.

 

Outlook

The UK economy has generally held up well following the EU Referendum result in June.  Construction activity has been broadly sustained and, although uncertainty remains about the likely timing and terms of our departure, we remain positive about the outlook for the industry.  We were encouraged by the Chancellor’s stated commitment last week to increase investment in our national infrastructure, together with continued support for housebuilding, both of which should have a beneficial impact on our business in the medium term.

We have a number of projects already secured and underway for next year and the continuing integration of Hope, coupled with a full-year contribution from Sherburn, are expected further to enhance our performance.  We therefore remain confident of making continued progress in 2017.

We will announce our preliminary results for the year ending 31 December 2016 on 8 March 2017.

 

* In accordance with the Cement Market Data Order 2016, cement volumes will not be disclosed.

** The Group believes that current market expectations for underlying EBIT range from £52 million to £54 million

Our use of cookies

We use cookies for website performance, to provide social media features and to analyse our traffic. We also share information about your use of our site with our analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services.

For more detailed information about the cookies we use, see our Cookie policy


Analytics cookies

We’d like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone.

For more detailed information about the cookies we use, see our Cookie policy

: