Breedon Group, the UK’s biggest independent construction materials group, saw its pre-tax profit rise 19% and its revenue by 43% in 2017. Group pre-tax profit was £71.2 million – up from £46.8mn; while revenue reached £652mn, compared to £454.7mn in 2016. Breedon also reduced its net debt by 31%, to £109.8mn from £159.3mn. Breedon sold 16mn tonnes of aggregates in 2017, compared to 11.4mn tonnes the previous year. Whilst asphalt sales of 1.9mn tonnes matched sales in 2016, the Group’s ready-mixed concrete
Breedon Group, the UK’s biggest independent construction materials group, saw its pre-tax profit rise 19% and its revenue by 43% in 2017. Group pre-tax profit was £71.2 million – up from £46.8mn; while revenue reached £652mn, compared to £454.7mn in 2016. Breedon also reduced its net debt by 31%, to £109.8mn from £159.3mn.
Breedon sold 16mn tonnes of aggregates in 2017, compared to 11.4mn tonnes the previous year. Whilst asphalt sales of 1.9mn tonnes matched sales in 2016, the Group’s ready-mixed concrete sales were up to 3.3mn m³, from 1.9mn m³ in the previous 12 months.
Headquartered in Breedon on the Hill, Derbyshire, England, Breedon’s strong profit growth has been boosted by its former Breedon Aggregates business and its acquisition of Hope Construction Materials, which it purchased for £336 million (€380mn) in August 2016.
Breedon recently confirmed it is in talks over the potential acquisition of a sizeable part of a leading Northern Ireland-based roads, runways, construction materials and civil engineering group.
The potential acquisition of the Belfast-headquartered Lagan Group by Breedon is in keeping with the Group’s British rival acquisition-fuelled rapid expansion in recent years.
Founded in 1960, the Lagan Group has an annual turnover of over £350 million (€395mn) and boasts over 1,000 employees. Its large operations’ portfolio includes 28 quarries in the UK and Ireland, 10 asphalt plants, a cement factory, concrete and clay product plants and two house building companies.
Last summer Breedon finalised the acquisition of Humberside Aggregates for £9 million (€10.1mn). The deal added 30 staff to the Group’s 2,300-strong workforce.
Breedon also hopes to buy four quarries and an asphalt plant from Tarmac for £16.5 million (€18.6mn). In return, Tarmac would get 27 of Breedon’s ready-mixed concrete plants and £4.9 million (€5.53mn) in cash. The deal is subject to Competition & Markets Authority (CMA) approval.
Peter Tom CBE, Breedon Group executive chairman, said: “2017 was one of the most productive years in our history. We completed the integration of our largest-ever acquisition, concluded two bolt-on purchases and announced an important transaction with Tarmac that, subject to approval by the competition authorities, will see us streamline our ready-mixed concrete network in exchange for a substantial new reserve of minerals and a strategically valuable asphalt plant. This did not, however, distract us from our operational focus and we once again delivered a solid financial performance.
“Our business is in great shape and we are well positioned to benefit from the medium-term growth in residential and infrastructure development, to which the majority of our material is supplied.
“We look to 2018 and beyond with confidence and optimism.”
Breedon currently operates the UK’s biggest cement plant, two cement import terminals, 60 quarries, 26 asphalt plants, 200 ready-mixed concrete plants and three concrete products plants. The Group has strong asset backing, with over 750 million tonnes of mineral reserves and resources.
