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Mon September 23 2019

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Breedon manages to grow profits in flat market

25 Jul Quarrying and construction materials group Breedon has shown a 30% rise in half-year profit on turnover up 18%.

Helped by acquisitions and an exchange of certain assets with CRH company Tarmac last summer, Breedon’s revenue reached £447.4m for the six months to 30th June 2019 (2018 H1: £378.4m).

Profit before tax for the first half was £39.5m (2018 H1: £30.4m).

Breedon invested £20m in plant and capital assets in the first six months, including a new secondary crusher and screen at the Shierglas quarry near Pitlochry and a new primary crusher at Temple quarry near Belfast, together with the start of the replacement of the raw mill drive at the Hope cement works.  A mobile concrete plant was installed at Loak Farm quarry to service upcoming work on the A9 Dualling contract, with a mobile asphalt plant to follow on the site later this year. 

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Group chief executive Pat Ward 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.

"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."

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