Breedon Group announces annual results

Breedon Group, the UK’s leading independent construction materials group, has announced its audited annual results for the year ended 31 December, 2016.

They show that revenue was £454.7 million compared to £318.5 million in 2015, a 43% increase.

Profit before tax stood at £46.8 million (£31.3 million), an increase of 50%.

In 2016, the group sold 11.4 million tonnes of aggregates (2015: 8.7 million tonnes); 1.9 million tonnes of asphalt (2015: 1.8 million tonnes), and 1.9 million m³ of ready-mixed concrete (2015: 0.9 million m³).

The group says it has been transformed by the acquisition of 7447 Hope Construction Materials, with integration well advanced and synergies accelerated, while there were strong trading performances across the group, with improved sales and profits in former 894 Breedon Aggregates business, boosted by five-month contribution from Hope.

The acquisition of Sherburn Minerals Group was completed, adding two cementitious import terminals; four quarries, and five ready-mixed concrete plants to group portfolio.

There is continued planned capital investment in capacity and operational improvements, and the former Breedon Aggregates business’s Lost Time Injury Frequency Rate (LTIFR) improved by 22% to 2.13.

The group says a strong platform for growth has been established, with an encouraging outlook for 2017 on the back of expected increases in infrastructure and housing investment.

Peter Tom CBE, executive chairman, said: “2016 was arguably the most eventful year in the group’s history.

“We completed our largest acquisition to date; invested a record amount in our business; began supplying our biggest ever contract, and delivered an excellent financial performance, all against the background of an uncertain economic environment and challenging trading conditions in many of our markets.

“We are proud to be the largest independent construction materials business in the UK and the only publicly-quoted British company of any size in our sector.

“We have a very straightforward mission: to be the safest and most profitable company in our industry, and this ambition drives all our decision-making.

“As we look ahead, the government appears to have finally committed to substantial investment in the UK’s infrastructure and this, coupled with anticipated growth in the private housing market, is expected to bring significant medium- and long-term benefits to our business.

‘We will carry on doing what we do best: running our company as efficiently as possible, delivering healthy organic growth complemented by earnings-enhancing acquisitions, and thereby continuing to generate the excellent returns our shareholders expect of us. We look to the future with considerable optimism.”