Breedon Group PLC Trading Update (4832Q)
November 30 2016 - 1:01AM
UK Regulatory
TIDMBREE
RNS Number : 4832Q
Breedon Group PLC
30 November 2016
30 November 2016
BREEDON GROUP PLC ("Breedon" or "the Group")
Trading Update
Trading performance
Breedon delivered a strong performance in the 10 months to 31
October 2016. Both volumes and revenues in the former Breedon
Aggregates business were ahead of the prior year, supplemented by a
three-month contribution from the former Hope Construction
Materials business ("Hope").
Including Hope, Group sales volumes of aggregates increased by
25 per cent, asphalt by 1 per cent and concrete by 96 per cent(1)
.
Total Group revenue for the 10-month period increased by 31 per
cent to approximately GBP361 million. The integration of Hope is
progressing well, with synergies coming through earlier than had
previously been expected.
Assuming that weather conditions remain favourable for the
remainder of the financial year, the Group's underlying EBIT for
the full year is expected to be ahead of current market
expectations(2) .
Acquisition of the Sherburn Minerals Group
Furthermore, Breedon has today announced the acquisition of the
Sherburn Minerals Group ("Sherburn") for a total consideration of
up to GBP15.7 million, funded from the Group's existing resources.
Sherburn is a heavyside building materials business with operations
in the north of England and Scotland, supplying aggregates and
ready-mixed concrete, together with cement from two import
terminals in Blyth near Newcastle and Dundee in eastern
Scotland.
Further information on this acquisition is provided in the
separate announcement released by the Group today.
Outlook
The UK economy has generally held up well following the EU
Referendum result in June. Construction activity has been broadly
sustained and, although uncertainty remains about the likely timing
and terms of our departure, we remain positive about the outlook
for the industry. We were encouraged by the Chancellor's stated
commitment last week to increase investment in our national
infrastructure, together with continued support for housebuilding,
both of which should have a beneficial impact on our business in
the medium term.
We have a number of projects already secured and underway for
next year and the continuing integration of Hope, coupled with a
full-year contribution from Sherburn, are expected further to
enhance our performance. We therefore remain confident of making
continued progress in 2017.
We will announce our preliminary results for the year ending 31
December 2016 on 8 March 2017.
- ends -
(1) In accordance with the Cement Market Data Order 2016, cement
volumes will not be disclosed.
(2) The Group believes that current market expectations for
underlying EBIT range from GBP52 million to
GBP54 million.
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For further information:
Breedon Group plc
Pat Ward, Group Chief Executive
Rob Wood, Group Finance Director
01332 694444
Stephen Jacobs, Head of Communications
07831 764592
Cenkos Securities plc
Max Hartley (Nomad)
020 7397 8925
Peel Hunt (joint broker)
Justin Jones / Mike Bell 020 7418 8900
Note to editors
Breedon Group plc is the UK's largest independent construction
materials group. Following completion of the acquisition of
Sherburn, Breedon will operate the country's largest cement plant,
two cementitious import terminals, around 60 quarries, 30 asphalt
plants, 200 ready-mixed concrete plants and three concrete products
plants nationwide. The Group will employ around 2,300 people and
have more than 750 million tonnes of mineral reserves and
resources. Its strategy is to continue growing organically and
through acquisition of businesses in the UK heavyside construction
materials market.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 30, 2016 02:01 ET (07:01 GMT)