AGM Statement

RNS Number : 7618B

Breedon Aggregates Ld

20 April 2012

 



20 April 2012

Breedon Aggregates Limited

("Breedon Aggregates" or the "Company")

AGM Statement

At 2.00pm today, Peter Tom, the Chairman of Breedon Aggregates, will deliver the following statement at the Company's Annual General Meeting.

"Trading in the first quarter of 2012 has been in line with expectations. As anticipated, sales volumes in the first quarter were behind last year which was boosted by the backlog of work caused by the heavy snow in November and December 2010. However, operating margins improved as a result of higher prices and cost-reduction initiatives taken last year.

"The English business benefited from the acquisitions of C&G Concrete and Nottingham Readymix, both of which performed in line with expectations, together with higher activity levels in the house building sector. In Scotland the business continues to be affected by the lack of spending on the trunk road network, but we have secured a number of other contracts which will commence in the second quarter.

"A number of bolt-on acquisitions are under review and the equity placing approved at the AGM will provide additional funds of approximately £15 million before expenses, to enable us to take advantage of such opportunities. We will continue to monitor developments in respect of the proposed UK merger of Lafarge and Tarmac, with the decision of the Competition Commission expected in early May 2012.

"While market conditions remain challenging and the main trading season lies ahead of us, the year has got off to a positive start and we are confident of making further progress in 2012."

"We will give a further update on the group's progress in our interim results announcement on 19 July 2012."

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For further information:

Breedon Aggregates Limited

Simon Vivian, Group Chief Executive

Ian Peters, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc

Nicholas Wells / Max Hartley

020 7397 8900

More about Breedon Aggregates

Breedon Aggregates is the largest independent aggregates business in the UK, operating 26 quarries, 18 asphalt plants and 40 ready-mixed concrete plants in England and Scotland, and employing around 800 people. The group has strong asset backing, with nearly 200 million tonnes of mineral reserves and resources.

www.breedonaggregates.com

 

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AGMURURRUNASUAR