Breedon Group sees revenue decline by 25% to GBP353.3m in 1H20
Breedon Group Plc announced its interim (unaudited) results for the six months ended 30 June 2020 with revenue reaching GBP353.3m, representing a 25 per cent drop from GBP447.4m in 1H19. Breedon recorded cement sales of 0.8Mt in the 1H20, down from 1Mt in 1H19, while ready-mix sales declined to 1Mm3 in the 1H20 from 1.5Mm3 in the 1H19. Breedon also sold 8Mt of aggregates and 1Mt of asphalt in the period, down from 9.9Mt and 1.4Mt, respectively in the 1H19.
Despite the COVID-19 lockdown in the UK at the end of March, which prompted the immediate shutdown of most operations, the company took decisive steps to keep its workforce safe and preserve liquidity. Site reopening commenced in early May 2020 as demand improved. June revenues recovered to 99 per cent of those in June 2019. The company’s net debt stands at GBP253.6m down from GBP343.7m in 1H19.
Pat Ward, Breedon Group CEO, said: "The recovery in our markets now appears to be well underway, and we have seen continued improvement into July. The great majority of our sites are now open, including both our cement plants. While near-term uncertainty remains, there is significant pent-up demand to be satisfied in both housing and infrastructure, reinforced by the substantial programme of investment confirmed by the Chancellor earlier this month. Looking to the longer-term, we believe the outlook for our markets remains positive, supporting our confidence in the prospects for the Group."
