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Breedon Hails Productive 2017 As Profit And Revenue Grow Strongly

7th Mar 2018 10:47

LONDON (Alliance News) - Aggregates firm Breedon Group PLC said Wednesday 2017 was one of its most productive as profit and revenue grew strongly and it completed the integration of a large acquisition.

In 2017, pretax profit expanded 52% to GBP71.2 million from GBP46.8 million the year prior. This was after revenue grew 43% to GBP652.4 million from GBP454.7 million the year before.

Breedon sold 16.0 million tonnes of aggregates in 2017, up from 11.4 million tonnes the year prior. Asphalt sold remained flat at 1.6 million tonnes. Ready-mixed concrete sold increased to 3.3 million cubic metres from 1.9 million the year prior.

Net debt also fell to GBP109.8 million, down 31% on 2016's GBP159.3 million.

"2017 was one of the most productive years in our history," Breedon Executive Chairman Peter Tom said. "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."

In August 2016, Breedon completed its GBP336.0 million Hope Construction Materials purchase after being cleared by the UK competition regulator following a long delay. In December 2017, Breedon paid GBP4.9 million and transferred 27 ready-mixed concrete plants to CRH PLC-owned Tarmac to acquire four quarries and an asphalt plant.

"This did not, however, distract us from our operational focus and we once again delivered a solid financial performance," Tom continued.

"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," Tom added.

"We look to 2018 and beyond with confidence and optimism", Tom concluded.


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