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Breedon Group trading update

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World Cement,


Breedon delivered a strong performance in the 10 months to 31 October 2016. Both volumes and revenues in the former Breedon Aggregates business were ahead of the prior year, supplemented by a three-month contribution from the former Hope Construction Materials business.

Including Hope, group sales volumes of aggregates increased by 25%, asphalt by 1% and concrete by 96%.

Total group revenue for the 10-month period increased by 31% to approximately £361 million. The integration of Hope is progressing well, with synergies coming through earlier than had previously been expected.

Assuming that weather conditions remain favourable for the remainder of the financial year, the Group’s underlying EBIT for the full year is expected to be ahead of current market expectations.

Outlook

The UK economy has generally held up well following the EU Referendum result in June. Construction activity has been broadly sustained and, although uncertainty remains about the likely timing and terms of our departure, we remain positive about the outlook for the industry. The Breedon Group were encouraged by the Chancellor’s stated commitment last week to increase investment in our national infrastructure, together with continued support for housebuilding, both of which should have a beneficial impact on the company’s business in the medium term.

The Group have a number of projects already secured and underway for next year and the continuing integration of Hope, coupled with a full-year contribution from Sherburn, are expected further to enhance the Group’s performance. The company therefore remains confident of making continued progress in 2017.

The Group will announce preliminary results for the year ending 31 December 2016 on 8 March 2017.

Read the article online at: https://www.worldcement.com/europe-cis/30112016/breedon-group-trading-update/

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