Trading Update

RNS Number : 8712T

Breedon Aggregates Ld

26 November 2013

 



26 November 2013

BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")

Trading Update & Appointment of New Group Finance Director

Breedon issues the following statement in advance of its year-end.  The Group is due to announce its preliminary results on 4 March 2014.

Trading Performance

The Group's trading performance has been very encouraging and pre-tax profits for the full year to 31 December 2013 are expected to be somewhat ahead of market expectations, assuming favourable weather conditions for the remainder of the year.  Sales volumes of aggregates, ready-mixed concrete and asphalt are all ahead year-on-year in both England and Scotland, assisted by contributions from our acquisitions of Aggregate Industries' operations in Northern Scotland and Marshalls' quarries in England.

Group sales revenue in the second half of the year has been stronger than in the first half and the full-year EBITDA margin is expected to be ahead of the prior year, driven by continuing improvement in the underlying business and the benefit of acquisitions.

Operational progress

Both the English and Scottish businesses continued to make good progress this year, helped by a general improvement in construction demand and a continued focus on management of costs, prudent investment and careful selection of work.

The Competition Commission's investigation into Breedon's acquisition of Aggregate Industries' Scottish operations is continuing and discussion regarding their findings is likely to commence in January.  Breedon continues to believe that there are only minor issues in one product area, which may require disposal of a limited number of individual assets.

Appointment of Group Finance Director

The Board has been notified by Ian Peters of his intention to step down as Group Finance Director in order to pursue other interests.  The Board intends to appoint Rob Wood as Ian's successor with effect from March 2014, and the required regulatory announcement will be made in due course.  A Chartered Accountant, Rob, 47, is currently Group Financial Controller of Drax Group plc.  He was previously Chief Financial Officer - Australia & Asia Pacific at Hanson PLC.

The Board would like to express its thanks to Ian for the significant contribution he has made to the development of the Group over the last five years and is grateful that he has agreed to remain in his role until March 2014 to ensure a smooth handover.

Outlook

For 2014 the Mineral Products Association is forecasting 2-4 per cent growth in aggregates volumes, 3-5 per cent growth in ready-mixed concrete and 2-4 per cent growth in asphalt - a more positive outlook than for a number of years.  The Construction Products Association is also forecasting a return to growth in UK construction output in 2014.

Against this backdrop, we have reason to be optimistic about the coming year and remain confident of making further progress in 2014.

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More about Breedon Aggregates

Breedon Aggregates is the largest independent aggregates business in the UK after the four global majors.  It operates 37 quarries, 22 asphalt plants, 48 ready-mixed concrete plants and two concrete block plants in England and Scotland and employs approximately 1,000 people.

The group has strong asset backing, with around 400 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 CBE, Chairman

Simon Vivian, Group Chief Executive

Ian Peters, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc (Nomad & joint broker)

Max Hartley / Nicholas Wellson 020 7397 8900

Peel Hunt (joint broker)

Justin Jones / Mike Bell on 020 7418 8900

 

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