Breedon continues to trade strongly

breedonBreedon Aggregates Ltd has reported a 20 per cent increase in revenue over the first 10 months of the year and said its profit margins were also increasing, meaning it thinks its full-year results will beat current market expectations.

In a trading update this morning, the firm said that for the 10 months to October, sales volumes of aggregates increased by 26 per cent, asphalt by 12 per cent and ready-mixed concrete by 18 per cent compared to last year.

Group sales revenue for the 10 months to October increased by 20 per cent to £226 million. Assuming that weather conditions remain favourable for the remainder of the year, underlying EBITDA and underlying basic earnings per share for the full year are expected to be ahead of current market expectations.

Both the English and Scottish businesses have continued to make good progress, with product volumes in both countries ahead of last year and EBITDA margins improving. Trading conditions in England have continued to be strong, with high demand in key markets while in Scotland conditions have been more subdued; however some areas such as Aberdeen have seen strong growth.

The company said: “We are delighted to have invested around £40 million on acquisitions during the year to date and expect to improve the performance of these businesses as they become fully integrated with Breedon’s existing operations.

“The outlook remains positive, with a number of projects already secured for next year. Both the Construction Products Association and the Mineral Products Association are forecasting further market growth in the UK. In particular we expect some improvement in Scotland, with several large contracts starting in our market areas. We are confident of making further progress in 2015.

“We will announce our preliminary results for the year to 31 December 2014 on 3 March 2015.”

Share icon
Share this article: