Breedon, the UK’s largest independent building materials group, has announced a strong trading performance in the first half of 2021, supported by a recovery in construction activity.
Group revenue for the period under review was £600.9mn, a 17% like-for-like rise on the £447.4mn achieved in H1 2019. Breedon’s profit before tax in H1 2021 was £46.2mn compared to £39.5mn in the first half of 2019. The group’s underlying EBIT (earnings before interest and taxes) for H1 2021 was £56.4mn – 9% ahead of the £49.5mn in H1 2019. Group underlying EBIT for 2021 is now expected to be at the top end of market expectations.
Breedon’s integration of its CEMEX UK assets, acquired last year for £178mn, is said to be ahead of schedule. The acquisition added around 170 million tonnes of mineral reserves and resources to Breedon’s portfolio. It also delivered a step-change in the development of its national asphalt strategy.
Commenting on Breedon’s H1 2021 trading performance, Rob Wood, group CEO, said: “Breedon delivered a strong trading result in the first half of 2021, building on the recovery in demand which started in the second half of last year. This resilient performance reflects the commitment and efforts of all our colleagues, who have each demonstrated the highest levels of enthusiasm, professionalism and flexibility in working safely across the business, despite the challenges of the past fifteen months.”
Wood said Breedon’s encouraging trading performance and cash generation had helped to strengthen the group’s balance sheet, enabling it to announce its first planned dividend, along with the group’s commitment to a progressive dividend policy.
He continued: “Our first-half performance, current trading conditions and improved visibility for the remainder of the year combine to give us greater confidence in the outlook for 2021.
“The outlook for our end markets remains positive, with the UK and Irish governments committed to significant investment in infrastructure, combined with sustained structural demand for new build residential housing. With a strong balance sheet and new financing facilities, we are well-positioned to continue to invest in the growth of the business and to create value for all our stakeholders.”
