Breedon issue trading update for first eight months
Improving trend in trading performance reported for June and July 2020 continued into August
IN a trading update issued today, Breedon say they have continued to deliver an encouraging trading performance since demand began to return in early May after the COVID-19 lockdown, with the improving trend for June and July, reported at the time of the company’s interim results, continuing into August.
The Group delivered revenues for the first eight months of the year of £531 million (2019: £624 million), including a one-month contribution from the recently acquired CEMEX assets in the UK.
Having reviewed the latest management forecasts, the board says it is now in a position to reinstate guidance for the 2020 financial year and currently anticipates delivering second-half underlying EBIT broadly in line with the second half of 2019, which would deliver a result in excess of the average of current full-year market expectations.
The Group believes that the average of current full-year market expectations for underlying EBIT is £57 million, with a range of £49 million to £70 million.
The Group also continues to be reassured by the Government’s restated commitment to investment in the UK’s infrastructure and by encouraging demand from the UK housing market, complemented by similar trends in the Republic of Ireland.
As providers of an essential service, Breedon say they have proved their ability to deliver a resilient performance despite unprecedented disruption, which provides considerable confidence in the long-term outlook for the business.
Breedon plan to issue their customary trading update for the first 10 months of the year on 18 November 2020 and to announce their preliminary results for the year ended 31 December 2020 on 10 March 2021.