Breedon Group exceeds expectations for 2021
Construction materials firm Breedon Group said today that it expects to report a better-than-expected underlying EBIT for the year and slightly above the upper end of the range of market expectations following a period of continued growing demand.
Group revenue for the 10 months to 31 October 2021 increased by 31% compared to the same period in 2019 to reach £1.045 billion. Like-for-like revenue increased 15%.
Breedon said it has continued to benefit from strong end markets, with demand levels remaining encouraging across the group. Trends evident in the first half have persisted with momentum in residential housebuilding and infrastructure spending continuing to drive volume growth.
“Cash generation has remained strong and the group has continued to degear, assisted by lower levels of capital expenditure. Our two-year capital investment plan, with its emphasis on sustainability linked projects, is unchanged and amounts to c.£170m over 2021 and 2022. However, we now expect capex for 2021 will be c.£70m with the balance deferred into next year, principally as a result of extended procurement lead times,” the company said.
It added: “The recovery we experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively by our local teams who have stayed close to their customers and suppliers. While the dynamic cost environment is likely to persist into 2022, the medium-term outlook for our end markets and demand levels remains encouraging, with both the UK and Irish Governments committed to material long-term spending plans for construction.”