Strong Trading At Breedon Aggregates


26th November 2014

Breedon Aggregates, the largest independent aggregates business in the UK after the four global majors, reported a strong trading performance in the 10 months to October.

The group whose Scottish registered office is at Ethiebeaton Quarry north of Monifieth, said its recently acquired and underlying businesses were making good progress.

Sales volumes of aggregates increased by 26%, asphalt by 12% and ready-mixed concrete by 18% compared to last year.

Group sales revenue increased by 20% to £226 million.

Assuming weather conditions remain favourable for the remainder of the year, underlying EBITDA (earnings before interest, taxes, depreciation and amortisation) — a measurement of cashflow — and underlying basic earnings per share for the full year are expected to be ahead of current market expectation.

These figures have been forecast at £34.8m to £36.1m and 1.30 pence to 1.46 pence respectively.

Breedon shares went up by more than 6% in early trading on Tuesday to 44p and closed at 43.27.

The company said businesses in both England and Scotland have continued to make good progress, with product volumes in both countries ahead of last year and margins improving.

Trading conditions in England have continued to be strong, with high demand in key markets.

In Scotland conditions have been more subdued but areas such as Aberdeen have seen strong growth.

The company has invested around £40m on acquisitions during the year to date and expects to improve the performance of these businesses as they become fully integrated with existing operations.

“The outlook remains positive, with a number of projects already secured for next year,” the company continued.

“Both the Construction Products Association and the Mineral Products Association are forecasting further market growth in the UK.

“In particular we expect some improvement in Scotland, with several large contracts starting in our market areas.

“We are confident of making further progress in 2015.”

Breedon Aggregates operates 52 quarries, 27 asphalt plants, 61 ready-mixed concrete plants and three concrete block plants in England and Scotland and employs approximately 1,250 people.

The group has strong asset backing, with more than 450m tonnes of mineral reserves and resources in the UK.

Breedon Aggregates’ strategy is to grow organically and through consolidation of the UK heavyside building materials sector.

Back to news