Breedon Group PLC Trading Update (1389X)
22 November 2017 - 6:00PM
UK Regulatory
TIDMBREE
RNS Number : 1389X
Breedon Group PLC
22 November 2017
NEWS RELEASE
22 November 2017
BREEDON GROUP PLC ("Breedon" or "the Group")
Trading Update
Trading performance
Breedon delivered another solid performance in the 10 months to
31 October 2017. Both volumes and revenues were ahead of the prior
year, including a full 10-month contribution from the former Hope
Construction Materials business, which was part of the Group for
only three months in the corresponding period of 2016.
Group sales volumes of aggregates increased by 47 per cent,
asphalt by 2 per cent and concrete by 99 per cent. Our cement
business is performing in line with our expectations(1) . Total
Group revenue for the period increased by 56 per cent to
approximately GBP561 million.
Assuming normal weather conditions for the remainder of the
financial year, the Group's underlying EBIT for the full year is
expected to be in line with current market expectations(2) .
Outlook
Forecasters expect construction output to grow modestly in 2017
and remain broadly flat next year before returning to growth in
2019. More significantly for us, new infrastructure and housing
work - which together account for approximately two-thirds of our
end-use markets - are expected to show healthy growth over the next
two years.
We continue to invest in our business at record levels, which is
yielding appreciable benefits in terms of enhanced performance and
improved productivity. This organic improvement gives us confidence
that we will make further progress in 2018.
We will announce our preliminary results for the year ending 31
December 2017 on 7 March 2018.
- ends -
(1) In accordance with the Cement Market Data Order 2016, cement
volumes are not disclosed.
(2) The Group believes that current market expectations for
underlying EBIT range from GBP74 million to GBP83 million.
For further information:
Breedon Group plc
Pat Ward, Group Chief Executive
Rob Wood, Group Finance Director
01332 694444
Stephen Jacobs, Head of Communications
07831 764592
Cenkos Securities plc
Max Hartley (Nomad)
020 7397 8925
Numis Securities (joint broker)
Heraclis Economides/Ben Stoop
020 7260 1000
Note to editors
Breedon Group plc is the UK's largest independent construction
materials group. It operates the country's largest cement plant,
two cementitious import terminals, around 60 quarries, 30 asphalt
plants, 200 ready-mixed concrete plants and three concrete products
plants nationwide. The Group employs around 2,300 people and has
more than 750 million tonnes of mineral reserves and resources. Its
strategy is to continue growing organically and through acquisition
of businesses in the UK heavyside construction materials
market.
This information is provided by RNS
The company news service from the London Stock Exchange
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