The company says that anticipated trading results for the year to 31 December, 2011, remain comfortably in line with market expectations, assuming normal weather conditions in December, and that several potential acquisitions are under review.
Sales volumes have held up well, with growth across all product groups in both Scotland and England, including “a positive contribution” from C&G Concrete (which Breedon acquired earlier in 2011). Sales revenue for the ten months ended 31 October, 2011, increased by 20% to £153million (€178.4million) compared to pro-forma 2010 revenues, including £4.9 million (€5.7million) from the former C&G business.
“Good progress has been made in addressing all the main operational issues identified at the start of the year. The English contracting business has been returned to profit, numerous asset disposals have been completed and the group’s mineral reserves have been substantially increased. Most notably, all key raw material cost increases have been recovered during the year. C&G has proved to be an excellent acquisition and we are well on the way to delivering the anticipated synergies from that business,” says Breedon.
Looking to 2012, the company says the outlook is uncertain as forecast growth in the economy slows.
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“The directors continue to believe that there is significant scope to further develop the group. The current market conditions will inevitably create further opportunities to purchase assets at realistic prices and several potential acquisitions are currently under review. The board has every expectation of making further progress in the year ahead.”
