TIDMBREE
RNS Number : 7132R
Breedon Group PLC
10 March 2021
News release
10 March 2021
Breedon Group plc
('Breedon' or 'the Group')
Annual Results 2020
Breedon, a leading construction materials group in Great Britain
and Ireland, announces its audited annual results for the year
ended 31 December 2020.
2020 2019 Change
Revenue GBP928.7 million GBP929.6 million (0%)
Underlying EBIT GBP76.5 million GBP116.6 million (34%)
Profit before tax GBP48.1 million GBP94.6 million (49%)
Underlying basic EPS 2.80 pence 5.08 pence (45%)
Net debt GBP318.3 million GBP290.3 million
Underlying results are stated before acquisition-related
expenses, redundancy and reorganisation costs, property losses,
amortisation of acquisition intangibles and related tax items.
References to an underlying profit measure throughout this
announcement are defined on this basis.
21.7 million tonnes of aggregates sold (2019: 20.2 million
tonnes)
3.3 million tonnes of asphalt sold (2019: 3.0 million
tonnes)
2.6 million cubic metres of ready-mixed concrete sold (2019: 3.0
million cubic metres)
2.0 million tonnes of cement sold (2019: 2.0 million tonnes)
Highlights
-- Robust performance against backdrop of considerable disruption caused by COVID-19
-- Strong recovery in second half, with like-for-like revenue
and Underlying EBIT ahead of prior year
-- Positive outcome for the year made possible by the support
and hard work of all our colleagues
-- Sustainability agenda progressed, appointment of first Group
Head of Sustainability and developing a clear roadmap for
Breedon
-- CEMEX Acquisition completed 31 July, integration on-track
-- Strong balance sheet and liquidity maintained
-- Leverage 2.1x at year-end due to strong second half trading and free cash flow generation
-- Intention to pay maiden dividend during 2021
Pat Ward, Group Chief Executive, commented:
"The pandemic brought unprecedented pressures to bear on the
Group in 2020, which demanded an exceptional response from everyone
in our business and I would like to say thank you to all our
stakeholders for their support during a difficult year. Most
especially I would like to thank our colleagues who have worked
tirelessly and enabled us to recover strongly in the second half to
deliver a very creditable outcome for the year.
Although we remain mindful of the ongoing impact of COVID-19,
with the worst of the pandemic now hopefully behind us and some
welcome clarity on Brexit, I believe the prospects for Breedon and
for our industry are increasingly positive. With robust commitments
from the UK and Irish governments to infrastructure investment and
continuing long-term demand for housing, forecasters are expecting
this year and next to see steady growth in demand for our products
in both countries.
During 2020 we proved our ability to deliver a resilient
performance against a backdrop of unprecedented disruption. Our
track record, coupled with improving market conditions, gives us
considerable confidence in the long-term outlook for our
Company."
- ends -
Breedon will host a virtual meeting for invited analysts at 9 am
(UK) today and there will be a simultaneous webcast of the meeting.
Please use this link to join the webcast:
https://brrmedia.news/rkals
The webcast will also be available to view on our website later
today at www.breedongroup.com/investors .
Enquiries:
Breedon Group plc 01332 694 010
Pat Ward, Group Chief Executive
Rob Wood, Group Finance Director
Rob Coates, Head of Investor Relations 07880 486 329
Numis Securities (NOMAD and Joint
Broker) 020 7260 1000
Ben Stoop
Oliver Hardy (NOMAD)
HSBC ( Joint broker ) 020 7991 8888
Sam McLennan
Joe Weaving
Teneo (Public Relations Adviser to
Breedon) 020 7420 3180
Matt Denham
Claire Scicluna
Note to Editors
Breedon Group plc is a leading construction materials group in
Great Britain and Ireland. It operates two cement plants and an
extensive network of quarries, asphalt plants and ready-mixed
concrete plants, together with slate production, concrete and clay
products manufacturing, contract surfacing and highway maintenance
operations. The Group employs approximately 3,500 people and has
over 1 billion tonnes of mineral reserves and resources. The
Group's strategy is to continue growing through organic improvement
and the acquisition of businesses in the heavyside construction
materials market.
Breedon Group plc
Annual results for the year ended 31 December 2020
Statement from the Chair
It is a measure of the quality of a company's management and
colleagues that, when market conditions are toughest, they remain
focused on delivering for stakeholders. I am proud of how we dealt
with the unprecedented demands of the past year, producing highly
creditable results and continuing to move the Group forward
operationally and strategically.
Paying tribute to our stakeholders
I would like to thank all our stakeholders for their continued
support and encouragement. Our shareholders, customers, suppliers
and partners, many of whom faced their own challenges, resolutely
demonstrated their confidence in us, without which we could not
have delivered such a resilient performance.
I pay particular tribute to our 3,500 colleagues, who played a
vital role in keeping Great Britain and Ireland's essential
services running during the pandemic by ensuring that our housing,
industrial and transport infrastructure were maintained and
enhanced. They did so willingly, with good humour and a commitment
to giving our customers the best possible service, despite the
difficulties they faced. Above all, they kept each other safe,
whilst making sure the business ran as normally as possible.
Despite the economic and market headwinds, we did not allow
ourselves to be blown off course and made progress on many fronts.
We delivered an Underlying EBIT of GBP76.5 million on revenues of
GBP928.7 million and net debt of GBP318.3 million, well ahead of
our expectations at the end of the first half. At the end of 2020,
Breedon was a stronger, fitter, bolder and more mature business
than at the beginning of the year.
Another transformational acquisition
Completing and integrating sizeable acquisitions is always
demanding. Our GBP178 million purchase of the former CEMEX assets
was made more challenging by the pandemic. Only two months after
announcing the deal, and with a CMA investigation underway, we were
confronted with a total shutdown of our business and several months
of disruption. We nevertheless completed the acquisition in July,
satisfied all the CMA's concerns by the end of November and began
integrating the assets before the end of the year.
The CEMEX Acquisition significantly expands our footprint in the
UK, giving us an additional 170 million tonnes of reserves and
resources and accelerates our asphalt growth strategy, enabling us
to commence expanding our contracting operations which are an
increasingly important route to market for our products. These are
outstanding assets and our management is already improving their
performance and extracting the substantial value we see in
them.
Our business model delivers strong free cash flow that enables
us to pay down debt quickly - and this remains a priority. We have
ample headroom in our current facilities, a good working
relationship with our banks and a committed shareholder base that
allows us to remain ambitious and on the lookout for further
value-enhancing opportunities. We will always allocate our capital
wisely to ensure that we can deliver attractive returns, including
on the incremental investment needed to grow or improve the assets
we acquire.
Sharpening our governance
We have strengthened our Board over the last two years in
preparation for the next stage in Breedon's development. Clive
Watson and Moni Mannings, both of whom joined the Board in 2019,
have already helped to enhance the governance of the Company, with
Clive appointed Senior Independent Director and Chair of the Audit
Committee during 2020 and Moni Designated Non-executive Director
responsible for workforce engagement, alongside her duties as Chair
of our Remuneration Committee. One of Moni's first tasks has been
to oversee a review of our remuneration policy.
We were delighted to welcome Carol Hui to the Board in May.
Carol has extensive corporate and commercial experience, primarily
in major infrastructure businesses, and is currently Chief of
Staff, General Counsel and a Board Director of Heathrow Airport
Limited. She will bring her considerable experience to bear on our
ESG agenda in her recently assumed role as Designated Non-executive
Director responsible for sustainability. We are also very pleased
to welcome Helen Miles to the board from 1 April, who brings a
wealth of operational and commercial experience and has a broad
understanding of the infrastructure sector.
Towards the end of the year the Board received notice of Pat
Ward's intention to retire as Group Chief Executive. Pat has
brought total dedication, inspired leadership, great wit and
pragmatism to the job every day for the last five years and I have
greatly enjoyed working with him. I know that our shareholders will
join me in thanking him for his outstanding service.
Pat stands down as Group Chief Executive and from the Board at
the end of March 2021 and leaves the Group in the hands of a highly
experienced successor. Rob Wood has served with excellence as Group
Finance Director since early 2014 and has worked very closely with
Pat on the development and execution of the Group's strategy and
the many operational improvements to the business over the past
five years, he succeeds Pat with the full confidence of the
Board.
He will in turn be succeeded by James Brotherton, who was
appointed CFO designate on 1 January this year. James was until
recently CFO of Tyman plc and formerly its Director of Corporate
Development, making a major contribution to its growth and
geographic expansion.
Embracing sustainability
In my conversations with investors and other stakeholders, the
strengthening stance on the obligation of public companies to
operate responsibly and sustainably has been clear. This is no
longer merely a licence to operate, but an existential imperative.
Those who are not serious participants in the drive to reduce our
impact on the planet risk starving themselves of capital,
customers, human resources and the public's goodwill. Our
commitment to sustainability is reflected in our purpose, which is
to make a material difference to the lives of our colleagues, our
customers and our communities, as well as a key pillar of our
strategy.
As a significant consumer of energy and natural resources, we
embrace our responsibility to lead by example. Addressing our
carbon footprint is at the heart of our strategy and is anchored at
Board level. The appointment of our first Group Head of
Sustainability and the nomination of a designated Director
responsible for sustainability reflect the seriousness of our
intent. We are working towards developing a clear roadmap and
targets against which our stakeholders will be able to hold us to
account over the coming years.
Confirming our maiden dividend
In my last report, I stated that we plan to adopt a progressive
distribution policy from this year and I can reconfirm that we
intend to declare a maiden dividend, subject to no material change
in trading conditions, with our interim results in July. This will
be an important step in rewarding shareholders for their continued
support and enhancing the return they receive on their investment,
whilst underlining our confidence in the Group's financial
strength, performance and growth prospects.
Looking ahead with optimism
As we adapt to the new business environment conditioned by
COVID-19, we are in a fortunate position. We are a major player in
an industry which governments of all persuasions view as essential
and in which they are prepared to invest. In the wake of the CEMEX
Acquisition we are even better placed to benefit from this positive
trend.
We welcome clarity on the post-Brexit trading relationship with
the EU, and whilst we still face some uncertainties around
COVID-19, our stakeholders should be reassured that we have an
outstanding leadership and operational management team with the
imagination and flexibility needed to take full advantage of the
opportunities open to us.
I am confident that, whatever challenges remain ahead of us, we
will deal with them with the same pragmatism and sureness of touch
that we have in the past. Over the longer term, I remain confident
that we will continue to prosper and deliver enhanced value for our
shareholders.
Amit Bhatia
Non-executive Chairman10 March 2021
Breedon Group plc
Annual results for the year ended 31 December 2020
Group Chief Executive's Review
The pandemic brought unprecedented pressures to bear on the
Group in 2020, which demanded an exceptional response from everyone
in our business. On behalf of the Board and our Executive
Committee, I would like to begin by thanking every one of our
colleagues for their support and hard work, which enabled us to
deliver a safe shutdown and subsequent restart of our operations in
the spring and a commendable full-year result under the most
challenging conditions.
Market background
Following a strong start to the year, the March lockdown
effectively brought the UK and Irish construction industries to a
halt for the better part of two months. This had immediate and
dramatic consequences for industry volumes, which took a number of
months to recover as housebuilding and infrastructure activity
gradually resumed through the second half of the year.
Trading performance
Our revenues held up remarkably well over the year, given the
severity of the pandemic's effects, remaining broadly flat at
GBP928.7 million (2019: GBP929.6 million), including the
contribution from the CEMEX Acquisition. But it was very much a
year of two halves. Our Underlying EBIT was significantly impacted
in the first six months as a result of the government lockdowns,
however it recovered strongly in the second half to reach GBP76.5
million for the year (2019: GBP116.6 million).
As soon as the pandemic began to take hold, we took early and
decisive action, restricting capital expenditure to committed and
critical projects, halting discretionary expenditure and focusing
on preserving our liquidity and financial headroom. We entered the
lockdown with a well-invested business and a well-managed
cost-base, which meant that, as demand began to recover, we were
able to bring our sites back on stream quickly and safely with
minimal disruption and no reduction in our operational
efficiency.
This in turn enabled us once again to generate strong free cash
flow and contain our net debt to GBP318.3 million by the year-end,
well below where we had expected to be prior to the onset of the
pandemic.
We have always prided ourselves on the quality and consistency
of our service and I am particularly proud of the fact that we
continued to meet the needs of our customers, even at the height of
the pandemic. This was entirely due to the efforts of our 3,500
colleagues who consistently went the extra mile to ensure that, as
far as possible, no delivery or contract went unfulfilled and no
customer was disappointed.
Our people
We are particularly appreciative of the support received from
the UK and Irish Governments during the pandemic, putting in place
schemes which allowed us to protect jobs and maintain employment
levels during this difficult period. Many of our colleagues were
furloughed or temporarily laid off, in some cases for several
months, and we were pleased to be able to support them by topping
up their incomes from the levels provided by the various government
employee subsidy schemes. A small minority continued to operate our
sites throughout the spring lockdown, supporting essential
infrastructure or NHS-related projects, and I would like to extend
a special thank you to them. Whether they were on-site, working
from home or furloughed, all our colleagues demonstrated the very
best that Breedon has to offer.
We continued to invest in the professional development of our
colleagues. The majority of our training and development activity
was transferred to a virtual platform shortly after government
restrictions were imposed. This enabled us to maintain our
Management Development Programme through the year and ensure that
essential safety and compliance training was uninterrupted.
At the beginning of the year we launched our new Breedon purpose
and values and proceeded to roll them out across the business.
Whilst there was an enforced hiatus due to the pandemic, I am
pleased to say that as the year progressed we saw increasing
evidence that our values were being embraced and lived on a daily
basis by our colleagues as they delivered for our customers and
kept one another safe. The sheer pace at which we had to adapt,
ensuring that we were fully 'COVID-ready' across the Group in the
space of a few weeks, demanded an accelerated development of best
practice that I believe was industry-leading in many areas.
Safety and wellbeing
We can be pleased that we were largely successful at preventing
the spread of the virus on our sites and in our offices, and that
our Total Injury Frequency Rate continued to decline, to 15.42. It
was disappointing that our Employee Lost Time Injury Frequency Rate
rose to 1.95 due to an increase in the number of minor incidents.
Although this still compares favourably with our industry peers, it
is far from where we aspire to be and our stakeholders will rightly
expect us to refocus our efforts to improve our performance.
As the year progressed, the mental health and wellbeing of our
colleagues was an increasingly important consideration for us. We
were mindful of the particular pressures and uncertainties which
many faced and the obvious consequences for them and their
families. We held resilience workshops, provided management
training to help identify mental health issues and worked with our
Employee Assistance Programme partners to ensure that 24/7 support
was available to all our colleagues if and when they needed it.
CEMEX Acquisition
In July we completed the acquisition of a portfolio of
high-quality UK assets from CEMEX for GBP178 million. For much of
the second half of the year these assets were held separate from
the Group while the CMA conducted an investigation into the
acquisition and, as a result, our integration efforts could not
start until December. This was not an easy time for our 600 new
colleagues on those sites, so I would particularly like to thank
them for their patience and forbearance as we worked to satisfy the
CMA's conditions and clear the way for the integration. It is to
their credit that they continued to give their customers a
first-class service and make a positive contribution to our
earnings during this challenging transition.
Everything we have seen in the acquired assets has confirmed our
view that they are of high quality, with an outstanding team of
people and great potential. We remain confident of significantly
improving their performance in the coming years.
Sustainability
The appointment of Donna Hunt, our first Group Head of
Sustainability, during 2020 reinforced our commitment to reducing
our impact on the environment and accelerating our progress on the
responsible use of resources. Donna has worked with the Board and
Executive Committee to conduct a materiality assessment for our
business. She will look to put in place a clear roadmap and
meaningful set of KPIs against which our management teams will
calibrate their progress in future. We are under no illusions about
the challenges posed by the 2050 Zero Carbon target, but we
recognise the need to act and are determined to play our part, as
responsible members of the construction community, in delivering on
that objective.
Outlook
This is my final report as Group Chief Executive of Breedon.
After five years leading the Group, I feel that this is the
appropriate time to step down and hand over to my successor to take
the Company through the next stage in its development.
Looking back over my time with Breedon, I have been privileged
to work with some outstanding colleagues who in my opinion have
represented the very best in our industry. When I joined, there
were around 1,250 of us working in around 80 sites in England and
Scotland. Today, there are nearly three times that number, working
across some 350 sites in England, Scotland, Wales, Northern Ireland
and the Republic of Ireland.
My colleagues have worked hard over that time to make Breedon a
safer company and a more environmentally friendly business. We have
expanded our asset base, now with around a billion tonnes of scarce
mineral reserves and resources and two well-invested cement plants.
Most importantly, we have achieved all this without losing the
essential characteristics that made Breedon so successful in its
first five years: a flat management structure with strong regional
teams, an unremitting focus on our customers and a collaborative
and mutually supportive culture.
I would like to thank Amit for all his support as Chairman and I
am really delighted to be handing over the reins to my successor,
Rob Wood. Rob and I have worked closely together over the past five
years, overseeing Breedon's improved operational performance and
expanding the Group both organically and through the integration of
a series of successful acquisitions. I could not be leaving the
Company in more capable hands and I wish Rob - and his successor as
CFO, James Brotherton - every success in the years ahead.
The priority this year will be to complete the integration of
the CEMEX Acquisition, begin delivering the operational
improvements of which they are capable, and further reduce our
debt. However, we will not pass up opportunities to grow and
develop our business through the right acquisitions and our
pipeline of potential targets remains intact.
Although we remain mindful of the ongoing impact of COVID-19,
with the worst of the pandemic now hopefully behind us and some
welcome clarity on Brexit, I believe the prospects for Breedon and
for our industry are increasingly positive. Against the background
of robust commitments from the UK and Irish governments to
infrastructure investment and continuing long-term demand for
housing, forecasters are expecting this year and next to see steady
growth in demand for our products in both countries.
During 2020 we proved our ability to deliver a resilient
performance against a backdrop of unprecedented disruption. Our
track record, coupled with improving market conditions, gives us
considerable confidence in the long-term outlook for our
Company.
Pat Ward
Group Chief Executive
10 March 2021
Breedon Group plc
Annual results for the year ended 31 December 2020
Group Finance Director's Review
Like every business, we were impacted by COVID-19. Revenue for
the year was affected by lower volumes due to the industry wide
shutdown in the second quarter of 2020. However, with a
well-invested business, we were well placed to manage the
disruption and we saw a strong recovery in activity during the
second half of the year with like-for-like revenues and Underlying
EBIT ahead of the comparative period.
Overall, revenue for the year at GBP928.7 million was broadly in
line with that of 2019 (GBP929.6 million). This reflected lower
volumes for all our key products, offset by the benefit of the
CEMEX Acquisition which completed in July 2020. On a like-for-like
basis, revenue was down six per cent on 2019.
On a reported basis, including the benefit of the CEMEX
Acquisition, Group aggregates volumes for the year were up seven
per cent at 21.7 million tonnes, asphalt volumes were up nine per
cent at 3.3 million tonnes, ready-mixed concrete volumes were down
15 per cent at 2.6 million cubic metres and cement volumes were
down three per cent at 2.0 million tonnes. Excluding the impact of
acquisitions and disposals, like-for-like aggregates volumes were
down six per cent, asphalt volumes up one per cent, ready-mixed
concrete volumes down 18 per cent and cement volumes down six per
cent.
Trading in the first quarter progressed broadly in line with
expectations until late March when the pandemic began to take hold.
Accordingly, volumes in the second quarter were heavily impacted,
with revenues in April falling to 19 per cent of those recorded in
the same month of 2019. However, activity levels across the
industry recovered strongly in subsequent weeks, initially led by
RoI, and in June revenues reached 99 per cent of those in June
2019. Trading continued to recover during the second half across
all areas of the Group and resulted in like-for-like revenues being
ten per cent ahead and Underlying EBIT nine per cent ahead of the
second half of 2019.
For the full year, Underlying EBIT was GBP76.5 million, 34 per
cent below 2019 (GBP116.6 million), primarily reflecting lower
gross margins which were impacted by lower volumes year-on-year.
The result also reflected a modest benefit from delaying the second
shutdown at the Hope cement plant to early 2021. On a like-for-like
basis, excluding GBP4.0 million benefit from the consolidation of
the CEMEX Acquisition, Underlying EBIT declined by 38 per cent. As
a result of these factors, the Group's Underlying EBIT margin
declined by 4.3 percentage points to 8.2 per cent. We expect EBIT
margins to recover strongly in 2021.
Non-underlying items
Non-underlying items in the year amounted to a net pre-tax cost
of GBP14.9 million (2019: GBP8.0 million), the major items being
acquisition costs relating to the CEMEX Acquisition and
amortisation of acquired intangible assets.
Interest
Finance costs in the year totalled GBP13.5 million (2019:
GBP14.0 million) and included interest on the Group's bank
facilities and lease liabilities, amortisation of bank arrangement
fees, and the unwinding of discounting on provisions.
Profit before tax
Profit before tax was GBP48.1 million, 49 per cent below 2019
(GBP94.6 million). Underlying profit before tax was GBP63.0
million, 39 per cent below 2019 (GBP102.6 million).
Tax
The tax charge was GBP14.4 million (2019: GBP16.6 million).
Excluding the impact of the change in deferred tax rate of GBP5.9
million, an Underlying tax charge of GBP9.8 million (2019: GBP17.3
million) was recorded in the year, reflecting lower profitability
in the period and resulting in an Underlying effective tax rate for
the full year of 15.6 per cent (2019: 16.9 per cent). This reflects
the higher proportion of RoI earnings in 2020.
In addition, there have been two significant accounting changes
in respect of deferred taxation, neither of which have a cash
impact. These are the recognition of a GBP5.9 million deferred tax
charge in the income statement relating to the UK government
legislating to cancel the planned decrease in corporation tax rate
from 19 to 17 per cent, and a balance sheet reclassification
adjustment of GBP13.4 million between deferred tax and goodwill for
assets with a dual tax base, following updated guidance issued by
the IFRS Interpretations Committee in 2020 which has been
retrospectively adopted by the Group through restatement of the
prior period balance sheet with no impact on reported earnings.
The Group benefitted from tax deferrals of which GBP12.6 million
of VAT was automatically deferred by HMRC and will be settled in
March 2021. The Group makes a significant contribution to the
economies in which we operate through taxation, either borne by the
Group or collected on behalf of, and paid to the tax authorities.
In 2020 the total taxes borne and collected by the Group amounted
to over GBP160 million (2019: c.GBP175 million).
Earnings per share
Basic EPS for the year was 1.99 pence (2019: 4.64 pence),
reported after the non-Underlying items mentioned above. Underlying
basic EPS for the year totalled 2.80 pence (2019: 5.08 pence).
Return on invested capital
Using average invested capital, year-end ROIC was 5.5 per cent
(2019: 8.8 per cent). The decline in 2020 reflects the increase in
invested capital resulting from the CEMEX Acquisition, as well as
the impact of COVID-19 on profitability during the period. Looking
forward, we expect our ROIC will recover as the Group's
profitability improves and we deliver an improved performance and
cost synergies from the recently acquired assets.
Statement of financial position
Net assets at 31 December 2020 were GBP888.4 million (2019:
GBP839.1 million). The Group's asset base is underpinned by
significant mineral reserves and resources, which at the end of
December 2020 totalled over 1 billion tonnes, and by our two
well-invested cement plants.
Free cash flow
Free cash flow increased significantly to GBP140.0 million
(2019: GBP90.0 million) as a result of strong trading in the second
half of the year and the decisive actions taken to manage costs and
liquidity in response to COVID-19.
Although Underlying EBITDA declined to GBP149.2 million (2019:
GBP180.2 million), this was offset by working capital inflows of
GBP56.0 million (2019: outflow of GBP10.3 million) as a result of
strong cash collection at the year-end and the benefit of tax and
other deferrals. We anticipate a portion of the working capital
movement in 2020 will unwind during 2021.
Cash interest charges totalled GBP10.3 million (2019: GBP11.0
million) and GBP20.7 million (2019: GBP18.1 million) of income
taxes were paid, with the latter reflecting an acceleration in the
timing of UK corporation tax payments which are now required to be
settled in full by the end of the year in which they arise.
Net capital expenditure of GBP36.4 million (2019: GBP53.0
million) reduced as a result of restricting capital expenditure to
committed and critical items to preserve liquidity. We anticipate
returning to a more normalised level of capital expenditure in
2021.
Acquisitions and divestments
Spend on acquisitions was GBP169.6 million which primarily
relates to the CEMEX Acquisition in July 2020. This was partially
offset by a GBP12.3 million benefit from the disposal of certain
assets to Tillicoultry Quarries Limited, which completed in
December 2020, to satisfy requirements of the CMA in relation to
the CEMEX Acquisition.
Net debt
On a pre-IFRS 16 basis, net debt at 31 December 2020 was
GBP265.2 million (2019: GBP246.7 million) and Leverage was 1.9
times (2019: 1.4 times). Including the impact of IFRS 16, net debt
at 31 December 2020 was GBP318.3 million (2019: GBP290.3 million)
and Leverage was 2.1 times (2019: 1.6 times). This represents
deleveraging in the second half of the year following the
completion of the CEMEX Acquisition, clearly demonstrating the
highly cash-generative nature of the Group.
Bank facilities
In the first half of 2020, the Group exercised an accordion
option to increase its existing banking facilities by GBP80 million
in anticipation of the completion of the CEMEX Acquisition (see
note 6 to the Financial Statements).
In May we were confirmed as being eligible for the Bank of
England's Covid Corporate Financing Facility with an issuer limit
of GBP300 million. The Group's strong cash management and
generation during the year meant that we had no need to access this
facility.
At 31 December 2020, the Group's banking facilities comprised a
term loan of GBP205 million (2019: GBP125 million) and a
multi-currency revolving credit facility of GBP350 million (2019:
GBP350 million). Interest was paid on the facilities during the
period at a margin of between 1.30 per cent and 1.95 per cent above
LIBOR or EURIBOR according to the currency of borrowings.
The facilities are secured by a floating charge over the assets
of the Company and its subsidiary undertakings. The term loan is
repayable in two further annual instalments up to April 2022 and
the revolving credit facility is repayable in April 2022. The
facilities are subject to Group Leverage and Group interest cover
covenants which are tested half-yearly.
The Group maintains a good working relationship with its lenders
and, helped by strong recovery in trading in the second half of the
year, met all covenants and other terms of its bank facility
agreements throughout 2020. The Group has commenced preparations
for refinancing and has received positive engagement from its
lenders. Based on progress made to date, the Directors are
confident of being able to complete this process in 2021.
The Group maintains a strong liquidity position and at 31
December 2020, total undrawn facilities available to the Group
amounted to GBP289.3 million.
Capital allocation
Conservative and disciplined financial management and the
maintenance of a strong balance sheet are at the core of our
approach to capital allocation. The Board will always seek to
deploy our capital responsibly, focusing on organic investment in
our business to ensure that our asset base is well-invested. We
will continue to pursue selective acquisitions which will
accelerate our strategic development and that we are confident will
create long-term value.
This conservative approach to financial management enables us to
pursue capital growth for our shareholders through active
development of our business, whilst supporting our intended
sustainable progressive dividend policy.
Dividends
Recognising the Group's scale, level of maturity and cash
generation, the Directors reconfirm their intention to propose the
adoption of a progressive dividend policy from 2021.
The Board intends that the Group will pay an interim and a final
dividend in the approximate proportions of one-third and
two-thirds, respectively, of the annual dividend.
Subject to no material change in trading conditions, the first
dividend is expected to be declared with our 2021 interim
results.
Rob Wood
Group Finance Director
10 March 2021
Breedon Group plc
Annual results for the year ended 31 December 2020
Business reviews
GREAT BRITAIN
The year began well for our markets in GB, with all our products
performing in line with expectations. The lockdown imposed by the
UK Government in March had a dramatic impact on demand, which
effectively deprived some parts of our business of several months'
trading at one of our traditionally busiest times of the year.
However, as customers began to reopen their operations, demand
swiftly recovered, albeit at a varying pace in different regions,
and we were quickly and safely able to return our sites to full
operation.
As a result, while our financial performance was markedly down
on the prior year in the first half, we recovered to be comfortably
ahead in the second. Volumes from July onwards were generally
strong, especially in aggregates and asphalt which benefited from
recovering infrastructure investment. Later in the year as housing
demand strengthened, ready-mixed concrete also picked up the pace.
Although major contracts were limited for most of the year, we
began to ship significant volumes of aggregates to scheme enabling
works on HS2. The supply and lay contract on the A9 in Scotland
resumed in late July, with substantial volumes of asphalt and
concrete base laid and two-thirds of the project completed by the
year-end. In addition we supplied high specification concrete to
the Atomic Weapons Establishment at Burghfield.
The assets acquired as part of the CEMEX Acquisition on 31 July
2020 were held separate from the Group and traded as a distinct
entity, Pinnacle Construction Materials, until just before the end
of the year. The requirements of the hold separate meant that
integration of the CEMEX Acquisition could not begin until December
2020 and, as a result, in the period of ownership the business
traded broadly in line with its historic performance.
We took the opportunity during the year to progress a number of
key capital expenditure projects in England and Wales, including
the replanting of our North Cave quarry on Humberside and a
strategic investment in a new road bridge to allow access to seven
million tonnes of mineral reserves and resources at Holme Hall in
South Yorkshire. New concrete and aggregates processing plants at
our Willington Lock quarry improved our penetration of the
Bedfordshire and Cambridgeshire markets.
Among a number of innovations during the year, we developed in
conjunction with the Welsh Government a new asphalt product using
slate as the base aggregate, which was subsequently passed for use
on the road network. We also worked with a major customer to create
a new self-levelling, self-compacting cementitious screed; the
manufacturing methodology used on this product enabled us to extend
both our product portfolio and the geographical markets we serve.
Following successful trials with a revolutionary new foam mix
asphalt, Recofoam(R) , we completed four contracts with this new
material in conjunction with BEAR Scotland, Eurovia and Transport
Scotland.
With an eye to improving safety in our vehicle fleet, new 'low
cab' mixer trucks were purchased to replace ageing assets in
Birmingham as a first step to replacing all our urban owned
fleet.
Earlier this year we appointed our first Managing Director of GB
Contracting, reflecting the growing importance of contracting as a
route to market for our expanding asphalt production capacity.
There is every indication that the market is on a steadily
improving trend, with increased infrastructure spend beginning to
feed through to demand and a continued structural housing shortage,
both of which will benefit our business. One of our main priorities
this year is to complete the integration of the CEMEX Acquisition
and there are a number of promising new contracts in the
pipeline.
IRELAND
After an encouraging start to the year, our operations in RoI
were largely brought to a halt in late March as a result of the
lockdowns imposed by the Irish government. However, as demand began
to recover from May onwards we saw a steady improvement in volumes,
with a generally earlier recovery than in the UK.
Over the year as a whole, local authority road maintenance
remained broadly in line with the prior year, although a
significant reduction in spending by Transport Infrastructure
Ireland resulted in appreciably less work on national primary and
secondary road maintenance. By contrast, we are pleased to report
that new infrastructure work was ahead of the previous year.
We made impressive progress on the upgrade to the N4 Sligo to
Collooney dual carriageway, part of the east-west road corridor
linking Dublin with the largest transportation node in the
North-West. We also completed work on the realignment of the N52,
which links the M1 and M7 motorway, and we are delighted to have
won a further overlay contract for the 16/34 runway at Dublin
Airport.
We extended our asset base further with the acquisition of
additional reserves and resources at a number of our quarries, and
we committed significant capital expenditure to equipping a number
of our asphalt plants for use of RAP.
In NI, market conditions remained challenging in the wake of the
spring lockdown, although volumes gradually returned to 2019 levels
in the second half. Reduced demand in both the public and private
sectors, together with limited tender opportunities, meant that the
emphasis during the year was on maximising returns from our
existing contracts. Our contracting business achieved a solid
performance, generating increased internal volumes of material to
our asphalt plants.
Among the contracts completed was Phase 2 of the DP World London
Gateway infrastructure project, the third infrastructure scheme
successfully delivered by Whitemountain for this customer.
Capital investment and non-critical expenditure was constrained
in response to the pandemic, however we continued with the planned
replacement of our transport fleet and key contracting equipment
and invested in 'power apps' for the electronic capture of site
records in order to further reduce paper usage.
Looking ahead, in RoI we are focused on maintaining our
contracting market share and building our share of the aggregates
and ready-mixed concrete markets through selective bolt-on
acquisitions.
In NI, visibility on local government budgets and pipeline
projects is limited, however we are encouraged by the UK
Government's restated commitment to infrastructure investment and
look forward to benefiting from our share of the increased
expenditure. We will focus on strengthening our market position,
broadening our product range, increasing our mineral reserves and
maximising value from our existing assets.
CEMENT
After a strong start to the year, sales were impacted by
COVID-19 from late March, but steadily recovered from June and we
saw good demand in the second half of the year. Overall, we noted a
slight slowdown in our traditional concrete products market in GB,
offset by increased site work and ready-mixed concrete
activity.
Two of our three annual kiln shutdowns were completed in January
2020 on time and ahead of budgeted costs, the third shutdown was
deferred until early 2021 due to COVID-19 and strong product demand
towards the end of the year. At Kinnegad we began to introduce
solid recovered fuel to the kiln and we are pleased to report
alternative fuels now account for three-quarters of all fuel
consumed there. Towards the end of the year we submitted our
planning application for a new ARM offload facility at Hope, which
will enable us to bring in larger quantities of ARM by rail,
cutting down on road transport and further reducing our dependence
on high-sulphur shale.
Major investments during the year included the upgrade of our
main bag filter at Kinnegad, together with completion of the
replacement raw mill drive and kiln shells at Hope. In addition, we
started a research project in low emission intensity lime and
cement technology and trialling carbon-neutral wood shaving fuel at
Kinnegad which, together with a calciner project review at Hope,
are part of our drive to reduce carbon emissions and increase the
proportion of alternative fuels used in our plants.
More broadly, our efforts to improve sustainability in our
cement business are yielding benefits. We have significantly
reduced the level of waste produced and increased recycling by 50
per cent at Kinnegad and have introduced a self-contained FDPC
treatment area at the plant, using farmed rainwater as an
additional water source. We are actively involved in research into
calcined clay technology, with the aim of producing a secondary
cementitious material with a lower carbon footprint than clinker.
Over the longer term, we are monitoring the MPA's fuel-switching
trials, with a particular emphasis on the potential to replace
current fuels with hydrogen and plasma.
Looking ahead, our priorities for the current year are focused
on improving volumes, recovering cost increases, improving the
efficiency and utilisation of our owned fleet in the UK and
delivering the ARM project at Hope. We aim to make further progress
in fuel replacement and in due course we expect to submit a
planning application for the extension of our limestone quarry at
Hope to secure our long-term needs.
Breedon Group plc
Annual results for the year ended 31 December 2020
Consolidated Income Statement
for the year ended 31 December 2020
2020 2019
Non-underlying Non-underlying
* *
(note (note
Underlying 3) Total Underlying 3) Total
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 928.7 - 928.7 929.6 - 929.6
Cost of sales (630.8) - (630.8) (587.2) - (587.2)
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Gross profit 297.9 - 297.9 342.4 - 342.4
Distribution expenses (158.1) - (158.1) (163.8) - (163.8)
Administrative expenses (65.0) (14.9) (79.9) (63.6) (8.0) (71.6)
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Group operating profit 74.8 (14.9) 59.9 115.0 (8.0) 107.0
Share of profit of associate
and joint ventures 1.7 - 1.7 1.6 - 1.6
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Profit from operations 76.5 (14.9) 61.6 116.6 (8.0) 108.6
Financial expense (13.5) - (13.5) (14.0) - (14.0)
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Profit before taxation 63.0 (14.9) 48.1 102.6 (8.0) 94.6
Taxation - at effective
rate (9.8) 1.3 (8.5) (17.3) 0.7 (16.6)
Taxation - change in
deferred tax rate (5.9) - (5.9) - - -
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Profit for the year 47.3 (13.6) 33.7 85.3 (7.3) 78.0
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Attributable to:
Equity holders of the
parent 47.2 (13.6) 33.6 85.2 (7.3) 77.9
Non-controlling interests 0.1 - 0.1 0.1 - 0.1
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Profit for the year 47.3 (13.6) 33.7 85.3 (7.3) 78.0
----------------------------- ---------- --------------- ------- ---------- --------------- -------
Basic earnings per ordinary
share 2.80p 1.99p 5.08p 4.64p
Diluted earnings per
ordinary share 2.80p 1.99p 5.07p 4.63p
----------------------------- ---------- --------------- ------- ---------- --------------- -------
* Non-underlying items represent acquisition-related expenses,
redundancy and reorganisation costs, property losses, amortisation
of acquisition intangibles and related tax items.
Breedon Group plc
Annual results for the year ended 31 December 2020
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2020
2019
2020 GBPm GBPm
Profit for the year 33.7 78.0
Other comprehensive income
Items which may be reclassified subsequently
to profit and loss:
Foreign exchange differences on translation
of foreign operations, net of hedging 11.6 (13.3)
Effective portion of changes in fair
value of cash flow hedges 1.7 (1.5)
Taxation on items taken directly to
other comprehensive income (0.2) 0.2
--------------------------------------------- ----------- ------
Other comprehensive income/(expense)
for the year 13.1 (14.6)
--------------------------------------------- ----------- ------
Total comprehensive income for the year 46.8 63.4
--------------------------------------------- ----------- ------
Total comprehensive income for the year
is attributable to:
Equity holders of the parent 46.7 63.3
Non-controlling interests 0.1 0.1
--------------------------------------------- ----------- ------
46.8 63.4
--------------------------------------------- ----------- ------
Breedon Group plc
Annual results for the year ended 31 December 2020
Consolidated Statement of Financial Position
at 31 December 2020
2020 2019 (restated*)
GBPm GBPm
Non-current assets
Property, plant and equipment 816.3 698.6
Intangible assets 506.9 477.6
Investment in associate and joint
ventures 11.2 10.8
-------------------------------------- ------- ----------------
Total non-current assets 1,334.4 1,187.0
-------------------------------------- ------- ----------------
Current assets
Inventories 59.4 58.5
Trade and other receivables 192.9 164.7
Current tax receivable 0.9 -
Cash and cash equivalents 31.7 23.8
-------------------------------------- ------- ----------------
Total current assets 284.9 247.0
-------------------------------------- ------- ----------------
Total assets 1,619.3 1,434.0
-------------------------------------- ------- ----------------
Current liabilities
Interest-bearing loans and borrowings (64.7) (43.9)
Trade and other payables (245.1) (177.9)
Current tax payable - (7.6)
Provisions (5.0) (2.5)
-------------------------------------- ------- ----------------
Total current liabilities (314.8) (231.9)
-------------------------------------- ------- ----------------
Non-current liabilities
Interest-bearing loans and borrowings (285.3) (270.2)
Provisions (60.3) (32.2)
Deferred tax liabilities (70.5) (60.6)
-------------------------------------- ------- ----------------
Total non-current liabilities (416.1) (363.0)
-------------------------------------- ------- ----------------
Total liabilities (730.9) (594.9)
-------------------------------------- ------- ----------------
Net assets 888.4 839.1
-------------------------------------- ------- ----------------
Equity attributable to equity holders
of the parent
Stated capital 551.6 550.0
Hedging reserve 0.2 (1.3)
Translation reserve 4.9 (6.7)
Retained earnings 331.6 297.0
-------------------------------------- ------- ----------------
Total equity attributable to equity
holders of the parent 888.3 839.0
Non-controlling interests 0.1 0.1
-------------------------------------- ------- ----------------
Total equity 888.4 839.1
-------------------------------------- ------- ----------------
* Following the guidance issued by the IASB in April 2020 in
respect of the measurement of deferred tax balances on assets
arising through business combinations whose recovery gives rise to
multiple possible tax consequences, the Group has updated its
accounting policies, resulting in a reclassification of GBP13.4m
between Intangible Assets and Deferred Tax Liabilities in the 2019
balance sheet. Further detail is provided in note 1.
Breedon Group plc
Annual results for the year ended 31 December 2020
Consolidated Statement of Changes in Equity
for the year ended 31 December 2020
Attributable
to equity
holders Non-
Stated Hedging Translation Retained of controlling Total
capital reserve reserve earnings parent interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 January
2019 549.0 - 6.6 217.5 773.1 0.2 773.3
Shares issued 1.0 - - - 1.0 - 1.0
Dividend to
non-controlling
interests - - - - - (0.2) (0.2)
Total comprehensive
income for the year - (1.3) (13.3) 77.9 63.3 0.1 63.4
Share-based payments - - - 1.6 1.6 - 1.6
Balance at 31 December
2019 550.0 (1.3) (6.7) 297.0 839.0 0.1 839.1
------------------------ -------- -------- ------------ --------- ------------ ------------------------ -------
Shares issued 1.6 - - - 1.6 - 1.6
Dividend to
non-controlling
interests - - - - - (0.1) (0.1)
Total comprehensive
income for the year - 1.5 11.6 33.6 46.7 0.1 46.8
Share-based payments - - - 1.0 1.0 - 1.0
Balance at 31 December
2020 551.6 0.2 4.9 331.6 888.3 0.1 888.4
------------------------ -------- -------- ------------ --------- ------------ ------------------------ -------
Breedon Group plc
Annual results for the year ended 31 December 2020
Consolidated Statement of Cash Flows
for the year ended 31 December 2020
2020 2019
GBPm GBPm
Cash flows from operating activities
Profit for the year 33.7 78.0
Adjustments for:
Depreciation and mineral depletion 74.4 65.2
Amortisation 3.6 3.1
Financial expense 13.5 14.0
Share of profit of associate and joint ventures (1.7) (1.6)
Net loss/(gain) on sale of property, plant and
equipment 4.6 (0.8)
Share-based payments 1.0 1.6
Taxation 14.4 16.6
----------------------------------------------------- ------- ------
Operating cash flow before changes in working
capital and provisions 143.5 176.1
Increase in trade and other receivables (26.4) (0.8)
Decrease/(increase) in inventories 10.4 (5.7)
Increase/(decrease) in trade and other payables 64.6 (1.8)
Increase/(decrease) in provisions 7.4 (2.0)
----------------------------------------------------- ------- ------
Cash generated from operating activities 199.5 165.8
Interest paid (7.7) (8.4)
Interest element of lease payments (2.6) (2.6)
Dividend paid to non-controlling interests (0.1) (0.2)
Income taxes paid (20.7) (18.1)
----------------------------------------------------- ------- ------
Net cash from operating activities 168.4 136.5
----------------------------------------------------- ------- ------
Cash flows used in investing activities
Acquisition of businesses (151.7) (8.9)
Divestment of businesses 9.0 -
Purchase of share in joint venture - (3.0)
Issue of loan to joint venture - (4.0)
Dividends from associate and joint ventures 1.3 0.8
Purchase of property, plant and equipment (38.1) (56.3)
Proceeds from sale of property, plant and equipment 1.7 3.3
Net cash used in investing activities (177.8) (68.1)
----------------------------------------------------- ------- ------
Cash flows from/(used in) financing activities
Proceeds from the issue of shares (net of costs) 1.6 1.0
Proceeds from new interest-bearing loans (net
of costs) 79.5 -
Repayment of interest-bearing loans (53.4) (69.2)
Repayment of lease obligations (10.8) (12.9)
Net cash from/(used in) financing activities 16.9 (81.1)
----------------------------------------------------- ------- ------
Net increase/(decrease) in cash and cash equivalents 7.5 (12.7)
Cash and cash equivalents at 1 January 23.8 37.6
Foreign exchange differences 0.4 (1.1)
----------------------------------------------------- ------- ------
Cash and cash equivalents at 31 December 31.7 23.8
----------------------------------------------------- ------- ------
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements
1 Basis of preparation
Breedon Group plc is a company domiciled in Jersey.
The financial information (note 11) consolidates the results of
the Company and its subsidiary undertakings, and equity accounts
for the Group's interest in its associate and its joint ventures
(collectively 'the Group').
These consolidated Financial Statements have been prepared in
accordance with Adopted IFRS. The consolidated Financial Statements
have been prepared under the historical cost convention except for
the revaluation to fair value of certain financial instruments.
New IFRS Standards and Interpretations
Adoption of IFRS Interpretations Committee IFRIC update on
measurement of deferred tax
During 2020 the IFRS Interpretations Committee released an IFRIC
update in respect of IAS 12 - Income Taxes. This clarified how
deferred tax liabilities should be calculated for assets acquired
through business combinations whose recovery gives rise to multiple
possible tax consequences.
The impact of the updated interpretation is that deferred tax
liabilities are now required to be recognised on assets obtained
through business combinations which are both not eligible for
capital allowances and are being recovered 'through use' by being
depreciated or amortised over an asset's useful life.
The adoption of the new guidance has resulted in the restatement
of the Consolidated Statement of Financial Position as at 31
December 2019 to recognise additional goodwill and deferred tax
liabilities as follows:
Impact on the Consolidated Statement of Financial Position at 31
December 2019
Previously Adjustment Restated
reported
GBPm GBPm GBPm
Intangible assets 464.2 13.4 477.6
Total non-current assets 1,173.6 13.4 1,187.0
Total assets 1,420.6 13.4 1,434.0
------------------------------- ----------- ----------- ---------
Deferred tax liabilities (47.2) (13.4) (60.6)
Total non-current liabilities (349.6) (13.4) (363.0)
Total liabilities (581.5) (13.4) (594.9)
------------------------------- ----------- ----------- ---------
There is no cash implication to this adjustment. The impact on
the Consolidated Income Statement is not significant and this has
therefore not been restated.
Other new IFRS Standards and Interpretations
The Group has adopted the following standards from 1 January
2020:
- Amendments to References to Conceptual Framework in IFRS
Standards
- Amendments to IFRS 3 - Definition of a business
- Amendments to IAS 1 and IAS 8 - Definition of material
- Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate
Benchmark Reform
The adoption of these standards has not had a material impact on
the Financial Statements.
New IFRS Standards and Interpretations not adopted
At the date on which these Financial Statements were authorised,
there were no Standards, Interpretations and Amendments which had
been issued but were not effective for the year ended 31 December
2020 that are expected to materially impact the Group's Financial
Statements.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
1 Basis of preparation (continued)
Alternative performance measures
The following non-GAAP performance measures have been used in
the Financial Statements:
i. Underlying EBIT
ii. Underlying EBIT margin
iii. Underlying EBITDA
iv. Underlying basic earnings per share
v. Free cash flow
vi. Return on invested capital
vii. Leverage
Management uses these terms as they believe these measures allow
a better understanding of the Group's underlying business
performance. These alternative performance measures are well
understood by investors and analysts, are consistent with the
Group's historic communication with investors and reflects the way
in which the business is managed.
A reconciliation between these alternative performance measures
to the most directly related statutory measures is included within
note 10.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
2 Segmental analysis
The principal activities of the Group are the quarrying of
aggregates and manufacture and sale of construction materials and
building products, including cement, asphalt and ready-mixed
concrete, together with related activities in GB and Ireland.
The Group's activities are split into the following reportable
segments:
Great Britain comprising our construction materials and
contracting services businesses in Great Britain. This includes the
CEMEX Acquisition (see note 8).
Ireland comprising our construction materials and contracting
services businesses on the Island of Ireland.
Cement comprising our cementitious operations in Great Britain
and Ireland.
There are no other operating segments.
Income Statement
2020 2019
Underlying Underlying
Revenue EBITDA* Revenue EBITDA*
GBPm GBPm GBPm GBPm
Great Britain 622.8 77.0 615.1 98.4
Ireland 189.3 27.9 202.0 33.8
Cement 177.2 55.0 186.4 58.8
Central administration - (10.7) - (10.8)
Eliminations (60.6) - (73.9) -
----------------------- ------- ----------- ------- -----------
Group 928.7 149.2 929.6 180.2
----------------------- ------- ----------- ------- -----------
*Underlying EBITDA is earnings before interest, tax,
depreciation and mineral depletion, amortisation, non-underlying
items (note 3) and before our share of profit from associate and
joint ventures.
Reconciliation to statutory
profit
Group Underlying EBITDA as
above 149.2 180.2
Depreciation and mineral depletion (74.4) (65.2)
------------------------------------ ------ ------
Great Britain 34.8 62.8
Ireland 20.5 26.8
Cement 30.4 36.3
Central administration (10.9) (10.9)
------ ------
Underlying Group operating
profit 74.8 115.0
Share of profit of associate
and joint ventures 1.7 1.6
------------------------------------ ------ ------
Underlying profit from operations
(EBIT) 76.5 116.6
Non-underlying items (note
3) (14.9) (8.0)
------------------------------------ ------ ------
Profit from operations 61.6 108.6
Financial expense (13.5) (14.0)
------------------------------------ ------ ------
Profit before taxation 48.1 94.6
Taxation - at effective rate (8.5) (16.6)
Taxation - change in deferred
tax rate (5.9) -
------------------------------------ ------ ------
Profit for the year 33.7 78.0
------------------------------------ ------ ------
IFRS 16 adjustments result in increases of GBP9.3m in Underlying
EBITDA (2019: GBP7.9m), GBP1.5m in Underlying EBIT (2019: GBP1.0m),
GBP2.4m in Financial expense (2019: GBP2.3m), and a decrease of
GBP0.9m in Profit before taxation (2019: GBP1.3m) for the year
ended 31 December 2020.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
2 Segmental analysis (continued)
Disaggregation of revenue from contracts with customers
Analysis of revenue by geographic location of end market
The primary geographic market for all Group revenues for the
purpose of IFRS 15 is the UK and RoI. In line with the requirements
of IFRS 8, this is analysed by individual countries as follows:
2020 2019
GBPm GBPm
United Kingdom 799.5 793.3
Republic of Ireland 126.0 134.7
Other 3.2 1.6
Total 928.7 929.6
-------------------- ----- -----
Analysis of revenue by major products and service lines by
segment
2020 2019
GBPm GBPm
Sale of goods
Great Britain 545.5 543.2
Ireland 51.9 51.2
Cement 177.2 186.4
Eliminations (60.6) (73.9)
714.0 706.9
-------------- ------ ------
Contracting services
Great Britain 77.3 71.9
Ireland 137.4 150.8
214.7 222.7
--------------------- ----- -----
Total 928.7 929.6
------ ----- -----
Timing of revenue recognition
Al l revenues from the sale of goods relate to products for
which revenue is recognised at a point in time as the product is
transferred to the customer. Contracting services revenues are
accounted for as products and services for which revenue is
recognised over time.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
2 Segmental analysis (continued)
Statement of financial position
2020 2019 (restated*)
Total Total Total Total
assets liabilities assets liabilities
GBPm GBPm GBPm GBPm
Great Britain 847.7 (188.3) 668.7 (119.6)
Ireland 252.3 (46.0) 252.8 (39.5)
Cement 485.8 (54.7) 487.6 (42.0)
Central administration 0.9 (21.4) 1.1 (11.5)
----------------------- ------- ----------------------------- ------- ------------
Total operations 1,586.7 (310.4) 1,410.2 (212.6)
Current tax 0.9 - - (7.6)
Deferred tax - (70.5) - (60.6)
Net debt 31.7 (350.0) 23.8 (314.1)
----------------------- ------- ----------------------------- ------- ------------
Total Group 1,619.3 (730.9) 1,434.0 (594.9)
----------------------- ------- ----------------------------- ------- ------------
Net assets 888.4 839.1
----------------------- ------- ----------------------------- ------- ------------
*Comparative values have been restated for 2019 to reflect the
impact of the Group adopting updated guidance from the IASB for the
measurement of deferred taxation on business combinations. This
results in GBP13.4m of additional goodwill assets and GBP13.4m of
additional deferred tax liabilities in 2019. See note 1 for further
details.
GB total assets include GBP11.2m (2019: GBP10.8m) in respect of
investments in associate and joint ventures.
Geographic location of property, plant and equipment assets
2020 2019
GBPm GBPm
United Kingdom 697.2 586.3
Republic of Ireland 119.1 112.3
Total 816.3 698.6
-------------------- ----- ---------------------
Analysis of depreciation and mineral depletion, amortisation and
capital expenditure
Additions
to owned
Depreciation Amortisation property,
and mineral of intangible plant and
depletion assets equipment
GBPm GBPm GBPm
2020
Great Britain 42.2 1.5 18.5
Ireland 7.4 2.1 5.2
Cement 24.6 - 12.1
Central administration 0.2 - 2.3
----------------------- ------------ -------------- --------------------
Total 74.4 3.6 38.1
----------------------- ------------ -------------- --------------------
2019
Great Britain 35.6 1.1 29.1
Ireland 7.0 2.0 10.6
Cement 22.5 - 17.9
Central administration 0.1 - 0.3
----------------------- ------------ -------------- --------------------
Total 65.2 3.1 57.9
----------------------- ------------ -------------- --------------------
Additions to owned property, plant and equipment exclude
additions in respect of business combinations.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
3 Non-underlying items
Non-underlying items are those which are either unlikely to
recur in future periods or which distort the underlying performance
of the business, including non-cash items. In the opinion of the
Directors, this presentation aids understanding of the underlying
business performance and references to underlying earnings measures
throughout this report are made on this basis. Underlying measures
are presented on a consistent basis over time to assist in the
comparison of performance.
2020 2019
GBPm GBPm
Included in administrative expenses:
Redundancy and reorganisation costs 0.9 1.1
Acquisition costs (note 8) 7.5 3.3
Property losses 2.9 0.5
Amortisation of acquired intangible assets 3.6 3.1
Total non-underlying items (before tax) 14.9 8.0
Non-underlying taxation (1.3) (0.7)
-------------------------------------------- ----- -----
Total non-underlying items (after tax) 13.6 7.3
-------------------------------------------- ----- -----
4 Financial expense
2020 2019
GBPm GBPm
Bank loans and overdrafts 7.7 8.4
Amortisation of prepaid bank arrangement fee 1.4 1.2
Lease liabilities 2.6 2.6
Unwinding of discount on provisions 1.8 1.8
--------------------------------------------- ----- -----
Financial expense 13.5 14.0
--------------------------------------------- ----- -----
5 Taxation
2020 2019
GBPm GBPm
Recognised in the Consolidated Income Statement
Current tax expense
Current year 12.9 18.1
Prior year (0.7) (0.5)
------------------------------------------------------ ----- -----
Total current tax 12.2 17.6
------------------------------------------------------ ----- -----
Deferred tax expense
Current year (3.6) (1.0)
Change in deferred tax rate 5.9 -
Prior year (0.1) -
------------------------------------------------------ ----- -----
Total deferred tax 2.2 (1.0)
------------------------------------------------------ ----- -----
Total tax charge in the Consolidated Income Statement 14.4 16.6
------------------------------------------------------ ----- -----
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
5 Taxation (continued)
2020 2019
GBPm GBPm
Recognised in Other Comprehensive Income
Deferred tax expense/(income)
Relating to cash flow hedges 0.2 (0.2)
0.2 (0.2)
----------------------------------------- ----- -----
2020 2019
GBPm GBPm
Reconciliation of effective tax rate
Profit before taxation 48.1 94.6
---------------------------------------------------- ----- -----
Tax at the Company's domestic rate of 19 per
cent 9.1 18.0
Difference between Company and subsidiary statutory
tax rates (1.4) (1.7)
Expenses not deductible for tax purposes 2.0 1.4
Property sales - (0.2)
Share-based payments (0.2) 0.1
Utilisation of unrecognised deferred tax assets - (0.2)
Income from associate and joint ventures already
taxed (0.2) (0.3)
Effect of change in UK deferred tax rate from
17 per cent to 19 per cent 5.9 -
Adjustment in respect of prior years (0.8) (0.5)
---------------------------------------------------- ----- -----
Total tax charge 14.4 16.6
---------------------------------------------------- ----- -----
The Company is tax resident in the United Kingdom, with a 19 per
cent tax rate. The Group's subsidiary operations pay tax at a rate
of 19 per cent (2019: 19 per cent) in the United Kingdom and 12.5
per cent (2019: 12.5 per cent) in the Republic of Ireland.
Legislation was passed on 17 March 2020 which substantially
enacted a cancellation of the planned reduction in the UK
corporation tax rate from 19 per cent to 17 per cent. A deferred
tax charge of GBP5.9m has been recognised to remeasure the Group's
UK deferred tax liabilities at 31 December 2020 at this higher
rate.
The Group's effective tax rate for the year is 29.9 per cent
(2019: 17.5 per cent). Excluding the impact of non-underlying items
and the change in deferred tax rate, the Group's Underlying
effective tax rate is 15.6 per cent (2019: 16.9 per cent).
In the budget on 3 March 2021, the UK Government announced a
proposal to increase the rate of corporation tax from 19 per cent
to 25 per cent which will increase the Group's effective tax rate
from 2023. This rate change is expected to be substantively enacted
in 2021 and will lead to the Group's deferred tax liabilities being
recalculated at the higher rate of 25 per cent. This will result in
an increased deferred tax liability of approximately GBP19 million
in 2021.
6 Interest-bearing loans and borrowings
Net debt
2020 2019
GBPm GBPm
Cash and cash equivalents 31.7 23.8
Current borrowings (64.7) (43.9)
Non-current borrowings (285.3) (270.2)
----------------------------------------- ------- -------
Statutory net debt (318.3) (290.3)
IFRS 16 lease liabilities* 53.1 43.6
----------------------------------------- ------- -------
Net debt excluding the impact of IFRS 16 (265.2) (246.7)
----------------------------------------- ------- -------
*IFRS 16 lease liabilities represent the incremental impact of
IFRS 16 - Leases following the adoption by the Group of the
standard in 2019.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
6 Interest-bearing loans and borrowings (continued)
Analysis of borrowings between current and non-current
2020 2019
GBPm GBPm
Secured bank loans 55.0 35.0
Lease liabilities 9.7 8.9
----------------------- ----- -----
Current borrowings 64.7 43.9
----------------------- ----- -----
Secured bank loans 240.6 230.6
Lease liabilities 44.7 39.6
----------------------- ----- -----
Non-current borrowings 285.3 270.2
----------------------- ----- -----
The Group's banking facilities comprise a term loan of GBP205m
(31 December 2019: GBP125m) and a multi-currency revolving credit
facility of GBP350m (31 December 2019: GBP350m). The term loan was
increased by GBP80m in the first half of 2020, when the Group
exercised an accordion option on its existing banking facilities to
finance the CEMEX Acquisition (see note 8). Interest was paid on
the facilities during the period at a margin of between 1.30 per
cent and 1.95 per cent above LIBOR or EURIBOR according to the
currency of borrowings. The facilities are secured by a floating
charge over the assets of the Company and its subsidiary
undertakings. The term loan is repayable in two further annual
instalments up to April 2022. The revolving credit facility is
repayable in April 2022.
7 Earnings per share
2020 2019
Weighted Weighted
average number Per share average Per share
Earnings of shares amount Earnings number of amount
GBPm (millions) (pence) GBPm shares (millions) (pence)
Statutory
Basic earnings per
ordinary share
Total earnings attributable
to ordinary shareholders 33.6 1,685.428 1.99 77.9 1,681.584 4.64
Effect of dilutive
items
Share-based payments - 3.534 - - 3.241 (0.01)
Diluted earnings per
ordinary share 33.6 1,688.962 1.99 77.9 1,684.825 4.63
---------------------------- -------- --------------- --------- -------- ------------------ ---------
Underlying*
Basic earnings per
ordinary share
Underlying earnings
attributable to ordinary
shareholders 47.2 1,685.428 2.80 85.2 1,681.584 5.08
Effect of dilutive
items
Share-based payments - 3.534 - - 3.241 (0.01)
Diluted earnings per
ordinary share 47.2 1,688.962 2.80 85.2 1,684.825 5.07
---------------------------- -------- --------------- --------- -------- ------------------ ---------
* Non-underlying items represent acquisition-related expenses,
redundancy and reorganisation costs, property losses, amortisation
of acquisition intangibles and related tax items.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the Financial Statements (continued)
8 Acquisitions
Current year acquisition
On 31 July 2020, the Group completed the CEMEX Acquisition. The
fair value of the consideration paid and the consolidated net
assets acquired, together with the goodwill arising in respect of
this acquisition was as follows:
Fair value
Fair value on
Book value adjustments acquisition
GBPm GBPm GBPm
Pre-existing goodwill 16.7 (16.7) -
Intangible assets - 0.1 0.1
Property, plant and equipment
- owned 124.7 12.2 136.9
Property, plant and equipment
- leased 23.0 (5.1) 17.9
Inventories 12.7 (0.8) 11.9
Trade and other receivables - 0.3 0.3
Interest-bearing loans and
borrowings (23.0) 5.1 (17.9)
Trade and other payables - (0.4) (0.4)
Provisions - (14.3) (14.3)
Deferred tax liabilities - (7.2) (7.2)
Total 154.1 (26.8) 127.3
--------------------------------------- ---------- ------------ ------------
Consideration - cash 151.1
Consideration - deferred consideration 3.0
--------------------------------------- ---------- ------------ ------------
Goodwill arising 26.8
--------------------------------------- ---------- ------------ ------------
The fair value adjustments primarily comprised adjustments
to:
-- de-recognise pre-existing goodwill;
-- revalue certain items of property, plant and equipment;
-- recognise restoration provisions to reflect the costs to
satisfy environmental, planning and other legislation;
-- remeasure of right-of-use assets and lease liabilities in
line with the Group's IFRS 16 discount rates; and
-- recognise deferred tax balances.
The goodwill arising represents expected synergies, the
strategic geographic location of the assets acquired and the skills
of the existing workforce.
Impact of current year acquisitions
Income statement
During the year, this acquisition contributed revenues of
GBP68.1m and Underlying EBIT of GBP4.0m to the Group.
If this acquisition had occurred on 1 January 2020, the results
of the Group for the year ended 31 December 2020 would have shown
revenue of GBP1,025.7m and Underlying EBIT of GBP73.1m.
Cash flow
The cash flow impact of acquisitions in the year can be
summarised as follows:
GBPm
Consideration paid for the current year acquisition 151.1
Settlement of deferred consideration from prior
year acquisitions 0.6
---------------------------------------------------- -----
Net cash consideration shown in the Consolidated
Statement of Cash Flows 151.7
---------------------------------------------------- -----
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the financial statements (continued)
8 Acquisitions (continued)
Acquisition costs
The Group incurred acquisition related costs of GBP7.5m (2019:
GBP3.3m) in the year relating principally to external professional
fees and due diligence costs in relation to the CEMEX Acquisition.
These have been included as non-underlying administrative costs
(note 3).
Prior year acquisition
On 1 October 2019, the Group completed the acquisition of
Roadway Civil Engineering & Surfacing Ltd.
The fair value of the consideration paid and the consolidated
net assets acquired, together with the goodwill arising in respect
of this acquisition was as follows:
Fair value
Fair value on
Book value adjustments acquisition
GBPm GBPm GBPm
Intangible assets - 4.9 4.9
Property, plant and equipment
- owned 1.5 1.7 3.2
Property, plant and equipment
- leased - 0.4 0.4
Inventories 0.1 - 0.1
Trade and other receivables 1.5 - 1.5
Cash 4.4 - 4.4
Trade and other payables (1.7) - (1.7)
Interest-bearing loans and
borrowings - (0.4) (0.4)
Deferred tax liabilities (0.3) (1.2) (1.5)
Total 5.5 5.4 10.9
--------------------------------------- ---------- ------------ ------------
Consideration - cash 13.3
Consideration - deferred consideration 4.2
--------------------------------------- ---------- ------------ ------------
Goodwill arising 6.6
--------------------------------------- ---------- ------------ ------------
The fair value adjustments primarily comprised adjustments
to:
-- recognise GBP4.9m of acquired customer-related intangible assets;
-- revalue certain items of property, plant and equipment;
-- recognition of right-of-use assets and lease liabilities in line with IFRS 16 - Leases; and
-- deferred tax balances.
The goodwill arising represents expected synergies, the
potential for future growth, the strategic geographic location of
the assets acquired and the skills of the existing workforce.
9 Divestments
In response to the CMA's review of the CEMEX Acquisition, the
Group divested 14 sites to Tillicoultry Quarries Limited on 3
December 2020 for cash consideration of GBP9.0m. The value of
assets divested were as follows:
GBPm
Intangible assets 1.6
Property, plant and equipment - owned 7.2
Property, plant and equipment - leased 3.3
Inventories 1.2
Interest-bearing loans and borrowings (3.3)
Provisions (0.7)
Deferred tax liabilities (0.3)
Total 9.0
--------------------------------------- ------
Consideration received - cash (9.0)
Gain on disposal -
--------------------------------------- ------
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the financial statements (continued)
10 Reconciliation to non-GAAP measures
A number of non-GAAP performance measures are used throughout
these Financial Statements. This note provides a reconciliation
between these alternative performance measures to the most directly
related statutory measures.
Reconciliation of earnings based alternative performance
measures
Share of
Central profit of
administration associate
and and
Great Britain Ireland Cement eliminations joint ventures Total
2020 GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 622.8 189.3 177.2 (60.6) 928.7
Profit from operations 61.6
Non-underlying items
(note 3) 14.9
----------------------- -------------- --------- ------ -------------------------- ---------------- -----
Underlying EBIT 34.8 20.5 30.4 (10.9) 1.7 76.5
Underlying EBIT
margin* 5.6% 10.8% 17.2% 8.2%
----------------------- -------------- --------- ------ -------------------------- ---------------- -----
Underlying EBIT 34.8 20.5 30.4 (10.9) 1.7 76.5
Share of profit
of associate
and joint ventures - - - - (1.7) (1.7)
Depreciation and
mineral depletion 42.2 7.4 24.6 0.2 - 74.4
----------------------- -------------- --------- ------ -------------------------- ---------------- -----
Underlying EBITDA 77.0 27.9 55.0 (10.7) - 149.2
----------------------- -------------- --------- ------ -------------------------- ---------------- -----
Central Share of profit
administration of associate
and and
Great Britain Ireland Cement eliminations joint ventures Total
2019 GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 615.1 202.0 186.4 (73.9) 929.6
Profit from operations 108.6
Non-underlying items
(note 3) 8.0
----------------------- --------------- ----------- ------- ------------------------ --------------- ------
Underlying EBIT 62.8 26.8 36.3 (10.9) 1.6 116.6
Underlying EBIT
margin* 10.2% 13.3% 19.5% 12.5%
----------------------- --------------- ----------- ------- ------------------------ --------------- ------
Underlying EBIT 62.8 26.8 36.3 (10.9) 1.6 116.6
Share of profit
of associate
and joint ventures - - - - (1.6) (1.6)
Depreciation and
mineral depletion 35.6 7.0 22.5 0.1 - 65.2
----------------------- --------------- ----------- ------- ------------------------ --------------- ------
Underlying EBITDA 98.4 33.8 58.8 (10.8) - 180.2
----------------------- --------------- ----------- ------- ------------------------ --------------- ------
* Underlying EBIT margin is calculated as Underlying EBIT
divided by revenue
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the financial statements (continued)
10 Reconciliation to non-GAAP measures (continued)
Free cash flow
2020 2019
GBPm GBPm
Underlying EBIT 76.5 116.6
Depreciation and mineral depletion 74.4 65.2
Increase in trade and other receivables (26.4) (0.8)
Decrease/(increase) in inventories 10.4 (5.7)
Increase/(decrease) in trade and other payables 64.6 (1.8)
Increase/(decrease) in provisions 7.4 (2.0)
Share of profit of associate and joint ventures (1.7) (1.6)
Share-based payments 1.0 1.6
Dividends from associate and joint ventures 1.3 0.8
Dividend paid to non-controlling interests (0.1) (0.2)
Income taxes paid (20.7) (18.1)
Interest paid (7.7) (8.4)
Interest element of lease payments (2.6) (2.6)
Purchase of property, plant and equipment (38.1) (56.3)
Proceeds from the sale of property, plant and
equipment 1.7 3.3
Free cash flow 140.0 90.0
------------------------------------------------ ------ ------
Return on invested capital
2020 2019
GBPm GBPm
Underlying EBIT 76.5 116.6
--------------------------------------------- ------- -------
Underlying effective tax rate (note 5) 15.6% 16.9%
--------------------------------------------- ------- -------
Taxation at the Group's underlying effective
rate (11.9) (19.7)
Underlying earnings before interest 64.6 96.9
--------------------------------------------- ------- -------
Net assets 888.4 839.1
Net debt (note 6) 318.3 290.3
--------------------------------------------- ------- -------
Invested capital at 31 December 1,206.7 1,129.4
--------------------------------------------- ------- -------
Average invested capital* 1,168.1 1,106.7
--------------------------------------------- ------- -------
Return on invested capital** 5.5% 8.8%
--------------------------------------------- ------- -------
* Average invested capital is calculated by taking the average
of the opening invested capital at 1 January and the closing
invested capital at 31 December. Opening invested capital at 1
January 2019 was GBP1,084.0m.
** Return on invested capital is calculated as underlying
earnings before interest, divided by average invested capital for
the year.
Breedon Group plc
Annual results for the year ended 31 December 2020
Notes to the financial statements (continued)
10 Reconciliation to non-GAAP measures (continued)
Leverage
2020 2019
GBPm GBPm
Underlying EBITDA 149.2 180.2
Underlying EBITDA excluding the impact of IFRS
16 (note 2) 139.9 172.3
----------------------------------------------- ----- -----
Net debt (note 6) 318.3 290.3
Net debt excluding the impact of IFRS 16 (note
6) 265.2 246.7
----------------------------------------------- ----- -----
Leverage 2.1x 1.6x
Leverage excluding the impact of IFRS 16 1.9x 1.4x
----------------------------------------------- ----- -----
Leverage is calculated as the ratio of Underlying EBITDA to net
debt.
11 Financial Information
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2020
or 2019 but is derived from those accounts. Statutory accounts for
2019 have been delivered to the Jersey Companies Registry, and
those for 2020 will be delivered in due course. The Auditor has
reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the
Auditor drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under Article 113B(3)
or Article 113B(6) of the Companies (Jersey) Law 1991.
The Annual Report will be made available to shareholders on or
before 22 March 2021 and will be displayed on the Company's
website, www.breedongroup.com. Copies of the Annual Report and
Accounts will be available from the Company's Registered Office, 28
Esplanade, St Helier, Jersey, JE2 3QA.
This Announcement of results for the year ended 31 December 2020
was approved by the Directors on 10 March 2021.
Cautionary Statement
This announcement contains forward-looking statements which are
made in good faith based on the information available at the time
of its approval. It is believed that the expectations reflected in
these statements are reasonable but they may be affected by a
number of risks and uncertainties that are inherent in any
forward-looking statement which could cause actual results to
differ from those currently anticipated.
GLOSSARY
The following definitions apply throughout this announcement,
unless the context requires otherwise.
Adopted IFRS International Financial Reporting Standards
as adopted by the EU
ARM Alternative raw material
BEAR Scotland BEAR Scotland Limited
Breedon Breedon Group plc
CEMEX CEMEX UK Operations Limited
CEMEX Acquisition Acquisition of certain assets from CEMEX
CFO Chief Financial Officer
CMA Competition and Markets Authority
Division One of the Group's three operating segments:
GB, Ireland and Cement
EBIT Earnings before interest and tax
EPS Earnings per share
EURIBOR Euro Inter-bank Offered Rate
ESG Environment, Social & Governance
EU European Union
FDPC Flue Dust Portland Cement
GAAP Generally Accepted Accounting Principles
GB Great Britain
Group Breedon and its subsidiary companies
HMRC Her Majesty's Revenue & Customs in the UK
HS2 High Speed 2
IAS International Accounting Standards
IASB International Accounting Standards Board
IFRS International Financial Reporting Standard
Invested Capital Net assets plus net debt
Ireland The Island of Ireland
KPI Key Performance Indicator
Leverage Net debt expressed as a multiple of Underlying
EBITDA
LIBOR London Inter-bank Offered Rate
Like-for-like Like-for-like reflects reported values adjusted
for the impact of acquisitions and disposals
MPA Mineral Products Association
RAP Recycled asphalt planings
RoI Republic of Ireland
ROIC Post tax Return on Invested Capital
UK United Kingdom (GB & NI)
Underlying Stated before acquisition related expenses,
redundancy and reorganisation costs, property
items, amortisation of acquisition intangibles
and related tax items
Underlying EBITDA Earnings before interest, tax, depreciation
and amortisation non-underlying items and
before our share of profit from associate
and joint ventures
Whitemountain Whitemountain Quarries Limited. The construction
materials and contracting services brand under
which Breedon now trades in NI
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END
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