Tarmac Ltd back in profit after European business sales
Tarmac Ltd has reported a GPB75m (EUR85m) pre-tax profit for 2010 after the sale of its European businesses.
The Competition Commission is currently considering a joint venture between Tarmac UK and fellow cement firm Lafarge, announced by owners Anglo American and Lafarge in February.
Tarmac Ltd saw revenue from continuing operations increase to GBP968.7m in the year to 31 December 2010, from GBP934.8m in 2009. Pre tax profit before exceptional items was GPB175m, compared with a GBP13.4m loss last year. Post exceptional items, the profit was GBP75m, compared with a GBP46.9m loss.
Net assets are up to £210.6m, from £94.5m the year before, due to GBP34.6m of actuarial gains on company pensions schemes and a GBP173.8m dividend from Tarmac Investments Ltd after the sales of its European businesses.
Parent company Anglo American plc agreed the sale of Tarmac’s construction aggregates businesses in France, Germany, Poland and the Czech Republic to Eurovia, a subsidiary of the Vinci Group in February last year. It also sold Tarmac’s Polish concrete products business to Innova/4 LP, a Central European private equity fund advised by Innova Capital.
Tarmac Ltd said the outlook in the short terms is for continued weak demand in the company’s key markets.
But it added: “Tarmac is equipped to react to changing markets with the benefits delivered by asset optimisation and procurement initiatives exceeding targets and forecast to continue."
Published under Cement News
