Breedon Group issues AGM trading update
Vertically integrated construction group reports on trading ahead of Annual General Meeting
IN an update issued ahead of today’s AGM, Breedon Group plc said trading during the first quarter of 2024 was impacted by the ongoing macroeconomic uncertainty and reduced construction activity due to wet weather conditions. This led to softer volumes which were partially offset by resilient pricing. As a result, revenue reduced by 5%, or 9% on a like-for-like basis, compared with the first quarter of 2023.
In Great Britain, where trading conditions were particularly affected by the wet weather, the Group completed two bolt-on acquisitions during the quarter; Eco-Asphalt, a well-connected asphalt plant in the North West, and Phoenix Surfacing, who will enhance the Breedon’s surfacing capability in the Midlands.
The Group also launched its third platform in the US with the acquisition of BMC, which completed on 7 March 2024. With integration progressing well, Breedon say the first weeks of trading under their ownership have been encouraging and the outlook is positive.
Rob Wood, Breedon’s chief executive officer, commented: ‘I am encouraged by our strategic progress in the first quarter. Whilst there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry.
‘We have laid good foundations for the remainder of the year, progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions, and launching our third platform by entering the US market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024.’
Breedon will announce their interim results for the six months ending 30 June 2024 on Wednesday 24 July 2024.
