1H14 highlights
The UK’s Breedon Aggregates Ltd has released its results for 1H14. The group’s results improved in the first half of the year, aided in particular by a better 1Q14 following poor weather in 1Q13. The volume of aggregates sold increased by 31% y/y, asphalt was up by 16% y/y and concrete volumes grew by 15% y/y. Sales revenue improved by 25% y/y (27% in England, 22% in Scotland), and a rise of 14% was recorded when excluding acquisitions. Underlying EBITDA came in at £17.8 million, up 37% on the £13 million reported in 1H13. On a regional basis EBITDA improved by 48% y/y in England and by 28% y/y in Scotland. Excluding acquisitions, underlying EBITDA grew by 16% y/y.
Safety
The group’s Long-Term Injury Frequency Rate dropped by nearly 20% over the last year, although two LTIs were reported in 1H14 compared to one in 1H13. Breedon Aggregates Ltd aims to accident frequency by 50% in full-year 2014.
Acquisitions and investments
In the first six months of this year, the group’s acquisitions included Huntsmans Quarries; a new sand and gravel quarry in Lincolnshire; opening of a new concrete plant near Stafford; a concrete plant at Clearwell quarry (purchased from Marshalls in 2013). The company has also invested in a new processing plant at Craigenlow quarry, Scotland, and a capacity expansion project at its Norton Bottoms quarry near Newark.
Following the completion of the Competition and Markets Authority’s (CMA) investigation into the group’s purchase of Aggregate Industries’ operations in Scotland, the business can now be fully integrated into the group. As a result of the investigation, Breedon Aggregates Ltd is required to sell a concrete plant and an asphalt plant in Aberdeen and enter into a price-control agreement on asphalt in Inverness. It has six months to comply with the CMA’s findings.
Adapted from press release by Louise Fordham