Breedon on track to deliver record earnings

Breedon on track to deliver record earnings
25 November 2022

Breedon Group reported that trading conditions remained supportive in the second half, enabling the company to fully recover rising input costs through robust pricing and disciplined cost management. In the four months to October 2022 group revenue expanded by 16 per cent YoY, resulting in a revenue of GBP1186m in the year to date, up 14 per cent YoY and 12 per cent on a like-for-like basis.

In Great-Britain the group delivered a strong operational performance and advanced strategically. “In surfacing, we were delighted to be awarded a place on the National Highways Pavement Delivery Framework, North Super Region and we acquired Thomas Bow, an East Midlands surfacing business. In materials we are in the process of commissioning our new Mansfield asphalt plant and we expanded our capability to include marine sand dredging through the acquisition of Severn Sands,” said the company in a statement.

Meanwhile, in Ireland activity picked up in line with normal seasonal trends but in Northern Ireland the pace was impacted by the absence of a governing Assembly. However, the group was awarded a number of framework contracts.

The cement business performed well. At the Hope plant, scheduled maintenance on the second kiln was completed on time and on budget.

In terms of sustainability, Breedon Group achieved its highest-ever rates of alternative fuel substitution and biomass usage. It also expanded the production of cement with a lower clinker factor.

The group said it is on track to deliver record earnings in 2022. While construction output has softened in the second half, the majority of its end-markets remain resilient, with infrastructure and industrial markets continuing to deliver growth. Therefore, it expects to deliver full-year results in line with expectations as set out with its interim results.

“While the short-term economic outlook limits visibility for the sector, our longer-term prospects remain well-underpinned by structural growth dynamics, and our exposure to infrastructure, housing and industrial end-markets is favourable. Independent of market conditions, there are many opportunities for progression within our control; optimising our assets, executing our active M&A pipeline in GB and Ireland and continuing to recover input cost inflation through our dynamic pricing strategy,” according to Breedon Group.

Published under Cement News