Breedon release trading update
Company delivering solid performance and confident of making further progress next year
BREEDON say they delivered another solid performance in the 10 months to 31 October 2018, with increased revenues, improved underlying EBIT and continuing strong cash generation, despite the challenges of a flat construction market in Great Britain and rising input costs.
Group sales volumes of aggregates increased by 21% and asphalt by 45%, compared with the prior year, whilst in common with the rest of the market Breedon’s concrete volumes declined, by 5%. The company’s cement business performed in line with expectations.
Group revenues grew by 32% to approximately £739 million, including just over six months’ contribution from the former Lagan Group, which traded strongly. Breedon say the integration of this business is progressing well and the company remains confident of delivering the anticipated synergies.
Assuming normal weather conditions for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be in line with current market expectations.
Looking ahead, despite the likelihood of continuing cost pressures next year, coupled with the unpredictability of the outcome of the Brexit negotiations, Breedon say sustained organic improvement, continuing strong cash generation and the company’s broadening geographical exposure, together with the potential for further bolt-on acquisitions, mean the Group is confident of making further progress in 2019.
Preliminary results for the year ending 31 December 2018 will be announced on 6 March 2019.