Construction materials provider Breedon Group says trading during the first quarter of the year was impacted by the ongoing macroeconomic uncertainty and reduced construction activity due to wet weather conditions.
This led to softer volumes which were partially offset by resilient pricing. As a result, revenue reduced by 5%, or 9% on a like-for-like1 basis, when compared to the first quarter of 2023.
Breedon, a vertically-integrated construction materials group in Great Britain, Ireland and the United States, made the comments in a trading update ahead of the group’s Annual General Meeting.
The group said in the update: “In GB trading conditions were particularly affected by the wet weather. We completed two bolt-on acquisitions; Eco-Asphalt, a well-connected asphalt plant in the North West, and Phoenix Surfacing which enhanced our surfacing capability in the Midlands.
“Ireland had a strong tendering season and is well positioned for the rest of the year, supported by healthy housing and infrastructure markets and the return of the governing Assembly to Stormont.
“Cement delivered two scheduled kiln maintenance shutdowns, on time and within budget, and continued to expand the use of alternative fuels and the provision of lower clinker content products.
“We launched our third platform in the USA with the acquisition of BMC, which completed on 7 March 2024. The first weeks of trading under our ownership have been encouraging, the integration is progressing well and the outlook is positive
Breedon CEO Rob Wood added: “I am encouraged by our strategic progress in the first quarter. Whilst there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry.
“We have laid good foundations for the remainder of the year; progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the US market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024.”
Breedon will announce its interim results for the six months ending 30 June 2024 on Wednesday 24 July 2024.
