Breedon Aggregates report 2011 results
Featured in08 March 2012 - 16:54
Company stabilized and English business returned to profit in first full year under Peter Tom and Simon Vivian
IN their first full year of trading, Breedon Aggregates have reported a pre-tax profit of £1.5 million on revenues that were up 17.5% at £168.9 million.
The company’s annual results for the year ended 31 December 2011 also reported an operating profit of £5.7 million and a 24.8% increase in EBITDA to £17.1 million.
Commenting on the results, executive chairman Peter Tom (pictured) said that despite some very competitive trading conditions, sales volumes had held up well with growth across all product groups in England and Scotland.
‘We are pleased to report a very satisfactory EDITDA of £17.1 million on revenues of £168.9 million, with a return to profit before tax of £1.5 million,’ he said, adding that the highlight of the year was the acquisition in July of the C&G concrete business.
‘In our first full year as Breedon Aggregates, we have been clearly focused on adding strength to our business. We have significantly increased our mineral reserves, extended our geographical reach, secured critical mass in our English ready-mixed concrete business and returned our English contracting operation to profit.
‘We can draw considerable satisfaction from these achievements, while recognizing that the market remains challenging and we must continue to drive the business hard to deliver the returns our shareholders expect from us.’
Mr Tom believes there is significant scope to further expand the Group and remains committed to securing additional bolt-on acquisitions of earnings-enhancing aggregates-related businesses.
‘The current market conditions are definitely creating opportunities to purchase assets at realistic prices and several acquisition opportunities remain under review,’ he said. ‘We have every expectation of making further progress in the year ahead.’
Breedon Aggregates’ group chief executive, Simon Vivian, added: ‘The proposed merger of Tarmac and Lafarge has been referred by the OFT to the Competition Commission, with a decision expected during the first half of this year. The industry is expecting significant disposals to be required if the deal goes ahead and we are continuing to monitor the situation closely.
‘Overall, we are confident that we will make further progress in 2012. We have a stable, experienced and motivated management team and remain confident in our ability to deliver an imnproved performance without any significant recovery in our key markets.’