Breedon sales of aggregates increased by 21% and asphalt by 45% compared with the prior year. In common with the rest of the market, the Group’s concrete sales declined, by 5%. The Group’s cement business performed in line with expectations.
Further trading figures show that Breedon Group revenues grew by 32% to approximately £739 million (€829.8mn), including just over six months’ contribution from the former
Assuming normal weather conditions for the remainder of the financial year, the Breedon Group’s underlying EBIT for the full year is expected to be in line with current market expectations.
Breedon notes that forecasters expect British construction output to be flat in 2018 and to grow modestly next year, before picking up pace in 2020. Output in Northern Ireland is forecast to increase steadily over the same period, while the Republic of Ireland is expected to deliver double-digit growth.
The Group trading update adds: “We continue to commit substantial investment across our business, which brings us ongoing benefits in terms of enhanced performance and improved productivity. Whilst we are mindful of the likelihood of continuing cost pressures next year, coupled with the unpredictability of the outcome of the Brexit negotiations, we have consistently demonstrated our ability to deliver value for our shareholders, irrespective of market conditions. Accordingly, sustained organic improvement, continuing strong cash generation and our broadening geographical exposure, together with the potential for further bolt-on acquisitions, give us confidence that we will make further progress in 2019.”
Breedon will announce its preliminary results for the year ending 31 December 2018 on 6 March 2019.
