Breedon grow 25% in first half

Half-year revenues reached £125.5m, up from £100.2m for the same period last year.

Underlying operating profit was up 57% to £10.4m (2013 H1: £6.6m). Pre-tax profit more than doubled to £9.1m (2013 H1: £4.4m).

Executive chairman Peter Tom said the improvement was partly driven by better weather – the start of 2013 was severely affected by poor weather – and partly due to improvement in the economy. The Mineral Products Association has reported national volume increases of 15-18% for aggregates and asphalt and 5% for concrete in the first quarter of 2014.

Breedon’s numbers were also boosted by acquisitions

The results include a full six months' benefit from the acquisitions of the former Marshalls quarries in England and the former Aggregate Industries (AI) operations in Scotland, which were completed on 30 April 2013. The results also include a month's contribution from Huntsman's Quarries, acquired on 1 June 2014 for £15m.

"We continue to invest in our core business and in the first half we acquired a new sand and gravel quarry at West Deeping in Lincolnshire and opened a new concrete plant at Cannock near Stafford. We also acquired, from AI, the concrete plant in our Clearwell quarry (purchased from Marshalls last year). In addition, we invested in a significant amount of capital equipment in the first half, including new processing plant at Craigenlow quarry in Scotland and a major investment to increase capacity at our large Norton Bottoms quarry near Newark. We continue to see good opportunities for further organic investment in the business at attractive returns."


 

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