Trading Statement

RNS Number : 8668X

Breedon Aggregates Ld

25 November 2014

 



   News release

25 November 2014

BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")

Trading Update

Trading Performance

Breedon continues to trade strongly, with both the recently acquired and underlying businesses making good progress.  For the 10 months to October, sales volumes of aggregates increased by 26 per cent, asphalt by 12 per cent and ready-mixed concrete by 18 per cent compared to last year.

Group sales revenue for the 10 months to October increased by 20 per cent to £226 million.  Assuming that weather conditions remain favourable for the remainder of the year, underlying EBITDA and underlying basic earnings per share for the full year are expected to be ahead of current market expectations¹.

Operational progress & outlook

Our businesses in both England and Scotland have continued to make good progress, with product volumes in both countries ahead of last year and EBITDA margins improving.  Trading conditions in England have continued to be strong, with high demand in our key markets.  In Scotland conditions have been more subdued; however some areas such as Aberdeen have seen strong growth.

We are delighted to have invested around £40 million on acquisitions during the year to date and expect to improve the performance of these businesses as they become fully integrated with Breedon's existing operations.

The outlook remains positive, with a number of projects already secured for next year.  Both the Construction Products Association and the Mineral Products Association are forecasting further market growth in the UK.  In particular we expect some improvement in Scotland, with several large contracts starting in our market areas.  We are confident of making further progress in 2015.

Cont/d…2

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We will announce our preliminary results for the year to 31 December 2014 on 3 March 2015.

¹ The range of analyst expectations for underlying EBITDA and underlying basic EPS are believed to be £34.8 million to £36.1 million and 1.30 pence to 1.46 pence respectively.

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Note to editors

Breedon Aggregates is the largest independent aggregates business in the UK after the four global majors.  It operates 52 quarries, 27 asphalt plants, 61 ready-mixed concrete plants and three concrete block plants in England and Scotland and employs approximately 1,250 people.  The group has strong asset backing, with more than 450 million tonnes of mineral reserves and resources in the UK.  Breedon Aggregates' strategy is to grow organically and through consolidation of the UK heavyside building materials sector.

For further information:

Breedon Aggregates Limited

Simon Vivian, Group Chief Executive

Rob Wood, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc (Nomad & joint broker)

Max Hartley / Nicholas Wells  020 7397 8900

Peel Hunt (joint broker)

Justin Jones / Mike Bell  020 7418 8900

 

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