Breedon profits up 50% after ‘transformational’ year

breedon-logo_11Construction materials supplier Breedon Group has reported another record set of results following its “transformational” year of acquisition and expansion.

The aggregates-to-concrete group saw strong trading across all areas last year – with improved sales and profits in existing businesses boosted by the £336 million buyout of Hope Construction Materials.

Revenue at the firm rose by 43% to £454.7m (2015: £318.5m) and pre-tax profit was up by 50% to £46.8m (2015: £31.3m).

The group notes the integration of Hope is “well advanced” and “synergies accelerated” and the Hope operations were fully integrated in the Northern business on January 1 with full integration to be followed at Breedon Southern later in 2017.

Breedon also acquired County Durham-based Sherburn last November, giving it four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria.

Sherburn also distributes cementitious products from two import terminals at Dundee and Blyth near Newcastle which Breedon said will allow it to import cement and ground granulated blast-furnace slag complimentary to cement-making.

Chief executive Pat Ward said: “The acquisition of Hope literally transformed the group. It took us into cement manufacturing for the first time, added five new quarries, a national network of concrete plants and eight rail-linked distribution depots, giving us a powerful platform for future growth.”

Breedon added that while market conditions were “challenging” last year, it was boosted by “additional Scottish Government funding for BEAR Scotland in the second half of the year”.

The group began work supplying and laying asphalt on the Aberdeen Western Peripheral Route and commenced work on the first phase of dualling the A9, which continues into 2017.

Breedon said those contracts “helped to offset the downturn in the wider Aberdeen market”.

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