Building blocks in place for next chapter of growth at Breedon
Construction materials group Breedon has hailed a “year of outstanding delivery” after reporting record volumes, revenue and earnings.
Audited annual results for the year ended 31 December 2021 reveal the group made a pre-tax profit of £114.3 million during the period, compared to £48.1m profit in 2020, after revenue reached £1,232.5 million, compared to £928.7m a year earlier.
Breedon said its underlying EBIT margin recovered to 10.8%, ahead of 2020, progressing back towards 2019 levels, while its 2020 acquisition of quarries and ready-mix plants from Cemex is now fully integrated and on track to realise target synergies.
Looking ahead, the group added: “The demand environment remains robust with long-term commitments in place from policymakers to fund infrastructure and construction. Forecasters are predicting mid-single-digit growth in 2022 and, while commodity cost volatility is expected to continue, the pricing backdrop is increasingly dynamic and we expect to fully recover input cost increases. We remain confident that Breedon will deliver profitable and cash generative growth in 2022, in line with management expectations.”
Ron Wood, chief executive officer, said: “2021 was a record year for Breedon. We navigated the second year of the pandemic successfully, supplied our customers with more materials than at any point in our history and fully integrated the Cemex assets. This excellent outcome was achieved at a time of constant change and the response from our colleagues, adjusting to the pandemic and the volatile economic backdrop, has been outstanding.
“Breedon is maturing. There are strong demand dynamics in our markets and we have many exciting opportunities ahead of us in the current year and beyond. Our GB Surfacing business is positioned for growth, the Cemex acquisition is integrated and poised to reap the benefits of our investment, and we see a number of bolt-on opportunities to in-fill our current footprint in GB and Ireland. Further afield, we have appointed a Business Development Director in the US as we advance our plans for a third platform.
“Breedon has come a long way in the past decade and we have a consistent track record for profitable and cash generative expansion. Our experienced leadership team and committed workforce operate a well-invested portfolio of assets with significant opportunities for sustainable growth. We have a strong balance sheet and will continue to take a measured approach to deploying our capital, taking the time required to find the right businesses to extend our portfolio. The building blocks are in place for our next chapter of growth.”