20th Nov 2019 09:27
(Alliance News) - Breedon Group PLC on Wednesday said it intends to focus on organic improvement as it reported growing earnings so far in 2019.
The construction materials company has delivered a strong performance in the 10 months to the end of October, it said, with an 8% increase in revenue to GBP800 million and improved underlying earnings before interest and tax.
Breedon said sales volumes of aggregates increased by 4%, asphalt by 8%, and cement by 6%, while ready-mixed concrete volumes declined by 5%.
The Breedon-on-the-Hill, England-headquartered firm highlighted these results were achieved against the backdrop of a flat construction market in the UK, where lower industry sales volumes were recorded for all major heavyside construction materials in the nine months to September 30.
Looking ahead, Breedon said, assuming no adverse weather conditions for the remainder of the year, underlying Ebit for the full year is expected to be in line with current market forecasts, ranging from GBP114 million to GBP118 million. In 2018, Breedon generated underlying Ebit of GBP103.5 million.
"Our focus on driving organic improvement, together with a healthy acquisition pipeline, gives us confidence that we will make further progress in 2020," the company said in its statement Wednesday.
Breedon will announce 2019 results on March 11, it said. The stock was trading 5% higher in London on Wednesday morning at 63 pence a share.
By Evelina Grecenko; [email protected]
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