Breedon's unaudited 1H18 results see revenues up 16%
Breedon Group Plc's interim results (unaudited) for 1H18 saw revenues up 16 per cent to GBP378.4m (US$378.4m) from GBP326.3m in 1H17. Profit before tax reached GBP30.4m down three per cent on GBP31.2m in 1H17. Net debt stood at GBP383.6m compared with GBP146.8m in 1H17.
The company reported that it sold 9.3Mt of aggregates and 1.2Mt of asphalt and 1.6Mm2 of ready-mix concrete in the period under review. Underlying EBIT stood at GBP42m up 17 per cent on GBP35.8m in 1H17.
During the 1H18, Breedon Group completed the acquisition of Lagan Group as well as two bolt-on acquisitions in England and Scotland.
Commenting on the results, Peter Tom CBE, Breedon's executive chairman, said: "This was one of the busiest periods in the group's history, with four acquisitions completed by 1 July including our first outside Great Britain, coupled with continued organic investment in a number of key projects. We had anticipated a challenging 2018 and so it proved in the first half, with testing trading conditions exacerbated by the severe weather in the first quarter and rising input costs throughout the period. Despite these headwinds, we delivered a resilient performance.
"We did much in the first six months of this year to rebalance the group, both geographically and operationally. Our new businesses in Ireland provide a valuable economic counterpoint to the continuing short-term challenges of our markets in GB and our asset swap with Tarmac has expanded our aggregates base and further reduced our reliance on the ready-mixed concrete market, thereby improving the quality of our earnings.
"We continue to view the medium- to long-term outlook in GB positively, with infrastructure spending forecast to increase steadily over the next three years and Government strategies to address our chronic housing shortage expected to fuel continued growth in the residential sector. Market conditions in Ireland are expected to be even healthier, with construction output in the Republic of Ireland forecast to grow by approximately 28 per cent in the three years to 2020 and NI expected to sustain construction output at approximately GBP3bn per annum from 2018 to 2022.
"In the more immediate term, taking into account our more balanced geographical exposure, we remain comfortable with current market expectations for 2018."
