Breedon Aggregates release “strong” trading performance

894 Breedon Aggregates, the largest independent aggregates business in the UK after the four global majors,  says in a current trading performance update that it continues to trade strongly, with both the recently acquired and underlying businesses making good progress.

For the ten months to October, sales volumes of aggregates increased by 26%; asphalt by 12% and ready-mixed concrete by 18% compared to last year.

Group sales revenue for the ten months to October increased by 20% to £226 million (€285 million), and assuming that weather conditions remain favourable for the remainder of the year, underlying EBITDA and underlying basic earnings per share for the full year are expected to be ahead of current market expectations.

For operational progress and outlook, the company says its businesses in both England and Scotland have continued to make good progress, with product volumes in both countries ahead of last year and EBITDA margins improving.

Trading conditions in England have continued to be strong, with high demand in its key markets, while in Scotland conditions have been more subdued, although some areas such as Aberdeen have seen strong growth.

“We are delighted to have invested around £40 million (€50.45 million) on acquisitions during the year to date and expect to improve the performance of these businesses as they become fully integrated with Breedon’s existing operations,” says the company statement.

“The outlook remains positive, with a number of projects already secured for next year. Both the 3742 Construction Products Association and the 2897 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.

“We will announce our preliminary results for the year to 31 December 2014 on 3 March, 2015.”