The Group continued its focused strategy execution delivering higher revenue, earnings and returns. Underlying revenue was up 12% to £671.1mn (£600.9mn in H1 2021); underlying EBIT was up 19% to £66.9mn (£56.4mn), and underlying profit before tax was up 25% to £60.9mn (£48.9mn).
Breedon says sales volume was normalising as expected, compared with the Covid-recovery inflated H1 2021, and the Group was serving “resilient structurally attractive markets in infrastructure, industrial, and house building, well-underpinned by central Government policies and the sustainability agenda.”
In a Group statement assessing the full year 2022 trading outlook, Breedon said that although the economic and political backdrop has grown increasingly uncertain in H1 2022, which had the potential to affect confidence, the Group remains optimistic for the remainder of 2022.
“Our customers’ order books are healthy, the mechanism for passing through cost increases has traction and enquiry levels are encouraging. We, therefore, expect to deliver Underlying EBIT at the top end of the range of consensus expectations.
“Our longer-term prospects are underpinned by the resilience of the end markets we serve; infrastructure demand is well supported by large long-term projects and centrally funded schemes, material industrial projects are coming to market driven by the environmental agenda, and house building order books remain robust.”
Rob Wood, Breedon’s chief executive officer, said: “We enjoyed a strong start to 2022. Our teams are focused on getting pricing right, our end market exposure is supportive, and that has produced excellent results, advancing our margins and returns towards our medium-term targets. We completed two in-fill transactions during July, with further M&A activity in the pipeline, and we have continued to progress a broad range of sustainability initiatives, including a commitment to the Science Based Targets initiative.
“Crucially, we achieved this strong outturn while keeping our people safe and well. We have continued to invest in our team as we prepare for our next chapter of growth, and that was reflected in our recent engagement survey, where response and engagement rates were the highest ever. Our colleagues are embracing the challenges presented by the uncertain backdrop, remaining focused on responding nimbly to local market requirements, winning new business, driving efficiencies and delivering first-class service to our customers. Now more than ever, our agile and entrepreneurial DNA will set us apart.”
