Trading Statement

RNS Number : 1205T

Breedon Aggregates Ld

01 December 2011

 



1 December 2011

BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")

Trading Update

Breedon Aggregates Limited issues the following statement in advance of its preliminary results announcement due on 6 March 2012.

Trading Performance

Anticipated trading results for the year to 31 December 2011 remain comfortably in line with market expectations, assuming normal weather conditions in December.  Sales volumes have held up well, with growth across all product groups in both Scotland and England, including a positive contribution from C&G Concrete. Sales revenue for the ten months ended 31 October 2011 increased by 20% to £153 million, including £4.9 million from the former C&G business compared to pro forma 2010 revenues of £127.7 million.

Operational progress

Good progress has been made in addressing all the main operational issues identified at the start of the year.  The English contracting business has been returned to profit, numerous asset disposals have been completed and the Group's mineral reserves have been substantially increased.  Most notably, all key raw material cost increases have been recovered during the year.  C&G has proved to be an excellent acquisition and we are well on the way to delivering the anticipated synergies from that business.

Outlook

The outlook for 2012 is uncertain as forecast growth in the economy slows.  The Construction Products Association anticipates a 3.6 per cent. fall in construction output and the full impact of public sector spending cuts has yet to be felt, particularly in Scotland.  However, the increases in English housing and infrastructure spending announced recently by the Government are very welcome and should have a positive impact on demand for our products in the medium term.

The Directors continue to believe that there is significant scope to further develop the Group.  The current market conditions will inevitably create further opportunities to purchase assets at realistic prices and several acquisition opportunities are currently under review.  The Board has every expectation of making further progress in the year ahead.

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More about Breedon Aggregates

Breedon Aggregates Limited is the largest independent aggregates group in the UK after the five global majors.  It operates 26 quarries, 18 asphalt plants and 40 ready-mixed concrete plants in England and Scotland and employs approximately 800 people.

The Group has strong asset backing, with nearly 200 million tonnes of mineral reserves and resources in the UK.

Breedon Aggregates' strategy is to grow through consolidation of the UK heavyside building materials sector.

For further information:

Breedon Aggregates Limited

Peter Tom, Chairman

01481 232553 / 07850 066000

Ian Peters, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc

Nicholas Wells / Max Hartley

020 7397 8900

 

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