Breedon announce interim results
Featured in19 July 2012 - 16:56
Company reports creditable first-half performance and announces first acquisition in Scotland
BREEDON Aggregates have announced that Group revenue for the six months ended 30 June 2012 was broadly in line with the same period last year at £83.0 million (2011: £84.7 million), while underlying Group EBITDA increased by 16% to £9.7 million over the same period (2011: £8.4 million).
The Group’s underlying EBITDA margin improved to 11.7% in the first half (2011: 9.9%), reflecting higher selling prices and sustained downward pressure on operating costs during the period.
Underlying operating profit was up 35% to £3.9 million in the first half of 2012 (2011: £2.9 million), while underlying profit before tax increased to £2.2 million in the first half of this year from £768,000 in the same period in 2011.
Commenting on the results, executive chairman Peter Tom (pictured) said trading in the first half was ‘in line with expectations and a creditable performance given the exceptionally weak UK market’.
Looking ahead he added: ‘While we do not expect any significant recovery in construction output in the short term, the business has performed well in the first six months of 2012 and we are confident of making further progress in the second half.’
Meanwhile, the Group’s Dundee-based subsidiary, Breedon Aggregates Scotland Ltd, has made its first acquisition in Scotland with the purchase of the trade and assets of Speyside Sand & Gravel Quarries Ltd, including their quarry at Rothes Glen, near Elgin.
The acquisition will add approximately 1 million tonnes of sand and gravel reserves to Breedon’s existing portfolio and will provide the company with its first sand and gravel quarry in the north-east of Scotland.
Breedon Aggregates Scotland already operate a ready-mixed concrete plant in the quarry, which will complement their adjacent hard rock quarry, ready-mixed concrete and asphalt plants at nearby Netherglen.
Commenting on the acquisition, Alan Mackenzie, chief executive of Breedon Aggregates Scotland, said: ‘Since Breedon Aggregates acquired the former Ennstone Thistle business we have been on the look-out for suitable opportunities to grow our business and build up our reserves north of the border.
‘Rothes Glen is an excellent addition to our existing portfolio and will provide us with a supply of quality sand and gravel reserves in the heart of one of our key markets.’