Breedon’s unaudited interim results for the first six months of this year show pre-tax profit of £31.2mn, compared to £20.9mn in H1 2016; and revenue of £326.3mn (£163mn in H1 2016).
The strong profit improvement was said by Breedon to be due to the good performance of the former Breedon Aggregates business and a robust contribution from the 2016 acquired
Further unaudited interim results show Breedon sold 7.9mn tonnes of aggregates in H1 2017 (4.6mn tonnes in H1 2016); 0.9 mn tonnes of asphalt sold (0.9mn tonnes in H1 2016); and 1.7mn m³ of ready-mixed concrete (0.5mn m³ in H1 2016).
Breedon say the integration of former Hope operations into the Group has been completed, with planned synergies expected to be fully delivered in 2018, ahead of schedule.
Pro Mini Mix has also recently been acquired by Breedon, with further bolt-on acquisitions in the pipeline. Organic development is also said to be underway in two new Breedon quarries in Scotland and County Durham.
Peter Tom CBE, Breedon executive chairman, said: “I am pleased to report that in the first half of 2017 the former Breedon Aggregates business posted a strong profit improvement and the former Hope Construction Materials business made a robust contribution, even after taking into account the shutdowns of both our cement kilns for planned annual maintenance and upgrade during the first half, which were completed on time and to budget.
“Although the outcome of the General Election, coupled with the commencement of Brexit negotiations, have created some further uncertainty for the UK economy, the outlook for UK construction remains encouraging. It is reassuring that the Government’s direction of travel appears to be moving away from continued austerity towards fiscal stimulus, which can only be helpful to our industry.
“We have consistently demonstrated our ability to generate value for our shareholders irrespective of economic conditions, through flexible and imaginative customer service, rigorous cost control, focused investment and a culture of continuous operational improvement. These disciplines, coupled with a strong balance sheet and healthy cashflow, put us in a strong position to take advantage of future growth opportunities, both organically and through further bolt-on acquisitions.
“More immediately, our performance in the first six months and our prospects for the second half give us confidence that we will meet 2017 market expectations.”
