Breedon on track to deliver record earnings
Construction materials group Breedon has reported that supportive trading conditions during the second half have enabled the group to fully recover rising input costs through robust pricing and disciplined cost management.
In the four months to October 2022, the group delivered revenue growth of 16% compared to the same period in 2021. This resulted in revenue of £1,186m in the year to date, some 14% ahead of the equivalent reported period last year and 12% on a like-for-like basis.
In Great Britain, as well as delivering a strong operational performance, Breedon advanced the business strategically. In surfacing, it was awarded a place on the National Highways Pavement Delivery Framework, North Super Region and we acquired Thomas Bow, an East Midlands surfacing business. In materials, it is in the process of commissioning its new Mansfield asphalt plant and expanded its capability to include marine sand dredging through the acquisition of Severn Sands.
Breedon said: “The Group is on track to deliver record earnings in 2022. While construction output has softened in the second half, the majority of our end-markets remain resilient, with infrastructure and industrial markets continuing to deliver growth. Consequently, we expect to deliver full year results in line with expectations as set out with our interim results.
“While the short-term economic outlook limits visibility for the sector, our longer-term prospects remain well-underpinned by structural growth dynamics, and our exposure to infrastructure, housing and industrial end-markets is favourable. Independent of market conditions, there are many opportunities for progression within our control; optimising our assets, executing our active M&A pipeline in GB and Ireland and continuing to recover input cost inflation through our dynamic pricing strategy.”
Rob Wood, CEO, added: “This time last year we reminded our investors of the agile and entrepreneurial DNA that sets Breedon apart. Our rapid response to changing market conditions, local focus, vertically-integrated business model and disciplined financial framework will again enable us to deliver record results.
“Visibility in the trading landscape has been poor for some years now, for a variety of reasons. Against this constantly changing backdrop, our team’s commitment and resolve have delivered quality products and great service to our customers, regardless of the economic or political landscape. For this, we thank them. Their focus and determination in turn continues to deliver for all our stakeholders.”