Breedon Group plc announce interim results
Interim results (unaudited) for the six months to 30 June 2018...
Breedon Group plc, a leading construction materials group in the UK and Ireland, announces its unaudited interim results for the six months ended 30 June 2018.
30 June 2018 30 June 2017 Change
Revenue £378.4 million £326.3 million +16%
Underlying EBIT† £42.0 million £35.8 million +17%
Underlying Profit before tax† £37.4 million £32.5 million +15%
Profit before tax £30.4 million £31.2 million -3%
Underlying basic EPS† 1.96 pence 1.84 pence +7%
Net debt £383.6 million £146.8 million
† Underlying results are stated before acquisition-related expenses, redundancy and reorganisation costs, property items, amortisation of acquisition intangibles and related tax items. References to an underlying profit measure throughout this announcement are defined on this basis.
9.3 million tonnes of aggregates sold (30 June 2017: 7.9 million tonnes)
1.2 million tonnes of asphalt sold (30 June 2017: 0.9 million tonnes)
1.6 million cubic metres of ready-mixed concrete sold (30 June 2017: 1.7 million cubic metres)
Highlights
- Resilient performance in challenging market: underlying EBIT margin maintained at 11.1%
- Continued strong cash generation and organic investment
- Acquisition of Lagan Group, a key strategic step outside Great Britain; integration progressing well
- Two bolt-on acquisitions completed in England and Scotland
- Further progress on safety improvement: Lost Time Injury Frequency Rate reduced from 1.41 in the first half of 2017 to 0.94 in the first half of 2018
- Completion of Tarmac asset swap on 1 July, rebalancing aggregates/readymix portfolio
- Positive outlook in Ireland offsetting continued short-term challenges of GB market
- Remain confident of meeting 2018 market expectations
Peter Tom CBE, Executive Chairman, commented: “This was one of the busiest periods in the Group’s history, with four acquisitions completed by 1 July including our first outside Great Britain, coupled with continued organic investment in a number of key projects. We had anticipated a challenging 2018 and so it proved in the first half, with testing trading conditions exacerbated by the severe weather in the first quarter and rising input costs throughout the period. Despite these headwinds, we delivered a resilient performance.
“We did much in the first six months of this year to rebalance the Group, both geographically and operationally. Our new businesses in Ireland provide a valuable economic counterpoint to the continuing short-term challenges of our markets in GB and our asset swap with Tarmac has expanded our aggregates base and further reduced our reliance on the ready-mixed concrete market, thereby improving the quality of our earnings.
“We continue to view the medium- to long-term outlook in GB positively, with infrastructure spending forecast to increase steadily over the next three years and Government strategies to address our chronic housing shortage expected to fuel continued growth in the residential sector. Market conditions in Ireland are expected to be even healthier, with construction output in the Republic of Ireland forecast to grow by approximately 28 per cent in the three years to 2020 and NI expected to sustain construction output at approximately £3 billion per annum from 2018 to 2022.
“In the more immediate term, taking into account our more balanced geographical exposure, we remain comfortable with current market expectations for 2018.”