Half-year revenue and profit up at Breedon
Company reports improved first-half performance despite lower volumes in second quarter
BREEDON Group plc have announced a 30% increase in profits on an 18% increase in turnover for the first half of 2019. In the company’s unaudited interim results for the six months ended 30 June 2019, Breedon reported a pre-tax profit of £39.5 million (H1 2018: £30.4 million) on revenue of £447.4 million (£378.4 million).
Underlying EBIT for the half year was 18% ahead of 2018 at £49.5 million (£42.0 million) and underlying EBIT margin was maintained at 11.1%. Net debt in the first half was down 10% to £347.7 million (£383.6 million).
During the first six months of 2019, Breedon’s aggregates sales volumes were up 6% at 9.9 million tonnes (9.3 million tonnes), asphalt volumes were up 20% at 1.4 million tonnes (1.2 million tonnes), ready-mixed concrete volumes were down 5% at 1.5 million cubic metres (1.6 million cubic metres) and cement volumes were up 19% at 1.0 million tonnes (0.9 million tonnes).
Commenting on the interim results, group chief executive Pat Ward (pictured) said: ‘We are pleased once again to be reporting an improved performance by the Group in the first half. The period began well, with benign weather in the first quarter and generally healthy demand for our products, particularly in England, Wales and the Republic of Ireland, somewhat offset by fewer large projects in Scotland.
‘Our performance in the second quarter was adversely impacted by lower volumes in Great Britain due to a flat construction market, ongoing project delays and competitive trading conditions. However, demand in Ireland remained robust.’
Looking ahead, Mr Ward said: ‘Despite the near-term uncertainties, July has started well and enquiry levels in Great Britain are encouraging, giving us confidence in a stronger second half. We have a healthy acquisition pipeline, the medium-term outlook for our markets is positive and the board remains confident of meeting full year expectations.’
Meanwhile, Breedon have announced the appointment of Clive Watson as a new non-executive director, effective 1 September 2019. Mr Watson was, until recently, group finance director of Spectris plc, a leading provider of productivity-enhancing instrumentation and controls, prior to which he held a number of senior finance positions with international businesses in the UK and overseas.