The major Great Britain and Ireland-based vertically integrated construction materials group’s annual revenue rose 33% to top £1 billion for the first time (£1.232.5bn), compared to £928.7mn in 2020. Breedon made a healthy pre-tax profit of £114.3mn in 2021, compared to £48.1mn in 2020.
Further Breedon 2021 trading figures reveal that group EBIT (earnings before interest & taxes) was up 107% and 17% on 2020 and 2019, respectively, to £127.4mn. The group's underlying EBIT margin recovered to 10.8%, ahead of 2020, progressing back towards 2019 levels.
Commenting on the group’s 2021 performance, Rob Wood, Breedon 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.”
Wood said Breedon is “maturing” and pointed to strong demand dynamics in its markets. “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’s CEO stressed that Breedon had come a long way in the past decade, demonstrating a consistent track record for profitable and cash generative expansion. He continued: “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.”
A group statement released with the 2021 trading results noted that the construction materials demand environment remains robust, with long-term commitments in place from policymakers to fund infrastructure and construction. Breedon notes that forecasters are predicting mid-single-digit growth in 2022. While commodity cost volatility is expected to continue, the pricing backdrop is increasingly dynamic, and the group expects to recover input cost increases fully. “We remain confident that Breedon will deliver profitable and cash generative growth in 2022, in line with management expectations,” the statement concluded.
