Breedon has issued a scheduled trading update with group revenues in both September and October ahead of the same period in the prior year, on a like-for-like basis. As a result, the group saw revenues for the first 10 months of the year reach GBP750m (2019: GBP800m), including three months contribution from the former Cemex assets in the UK.
The board now expects the group's underlying EBIT for the full year to be at least GBP70m, which is ahead of current market expectations.
The combination of continued positive trading and its focus on cost control and prudent cash management, as well as the recently announced agreement to dispose of certain assets to Tillicoultry Quarries (subject to final clearance by the CMA), means that Breedon currently expects net debt to be below GBP400m at the year end.
Looking ahead, the ongoing COVID-19 pandemic and Brexit negotiations create continued economic uncertainty and result in limited visibility on trading conditions going into next year, reports Breedon.
Nevertheless, with forecasters expecting a further recovery in construction activity in GB and Ireland in 2021, and with the UK and Irish governments making significant commitments to infrastructure spending, the outlook for Breedon's markets remains encouraging. The group will also benefit from the integration of the former Cemex UK assets into its existing operations, along with initiatives to improve performance, anticipated to begin by the end of this year.
Preliminary group results for 2020 are planned for 10 March 2021.
