Breedon on the acquisition trail
First publishedon www.AggBusiness.com
Breedon Aggregates, the UK's largest independent aggregates business, has unveiled preliminary results for 2011 which show revenue at £168.9 million (€202.4 million), a 17.5% increase over 2010.
The underlying EBITDA at £17.1 million is a 24.8% increase while the underlying operating profit was £5.7 million and the underlying profit before tax was £1.5 million.
Total non-current assets stood at £154.4 million
Underlying results are stated before acquisition related expenses, redundancy and reorganisation costs, property items, impairments, amortisation of acquisition intangibles, changes in the fair value of financial instruments and gains on bargain purchase.
During the year the group sold 4.1 million tonnes of aggregates; 1.4 million tonnes of asphalt and 400,000m³ of ready-mixed concrete.
According to the company its highlights included the group EBITDA margin improving to 10.1%despite high cost inflation; strong turnaround in English business; the first bolt-on acquisition (C&G Concrete); 24 million tonnes of additional mineral reserves & resources acquired;GoodQuarryinitiative launched to raise operational standards; improved health & safety focus with further improvements identified, and the acquisition of Nottingham Readymix post-year end.
Peter Tom, executive chairman, said: "In our first full year as Breedon Aggregates we have been clearly focused on adding strength to our business. We have significantly increased our mineral reserves, extended our geographical reach, secured critical mass in our English ready-mixed concrete business and returned our English contracting operation to profit. We can draw considerable satisfaction from these achievements, whilst recognising that the market remains challenging and we must continue to drive the business hard to deliver the returns our shareholders expect from us.
"We believe there is significant scope to further expand the group and we remain committed to securing additional bolt-on acquisitions of earnings-enhancing aggregates related businesses.
"The current market conditions are definitely creating opportunities to purchase assets at realistic prices and several acquisition opportunities remain under review. We have every expectation of making further progress in the year ahead."