Breedon Group is rebranding Hope Cement, which it bought in 2016, as Breedon Cement.
The move follows the purchase of the Sherburn import business so the cementitious activity of the group is no longer exclusively focused on the Hope Cement plant.
Breedon has integrated the former Hope operations, with all three divisions on a common IT platform, as well as the integration of Sherburn’s cementitious import terminals.
The integration of Hope Construction Materials resulted in Breedon Group doubling its revenues, leading to a 50% rise in half-year profits at £31m, up from nearly £21m for the same time in 2016.
The company highlighted strong profit improvement from the former Breedon Aggregates business and a “robust contribution” from former Hope Construction Materials which it purchased for £336m.
“Whilst it will clearly be more challenging in the wake of the Hope acquisition, we continue to target a 15% underlying EBIT margin for the group by 2020,” Peter Tom, 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.
“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.”
