Breedon returns to profit after strong first half

Leicestershire-based construction materials firm Breedon has returned to profit for the six months to June 30.

The firm made a surplus of £46.2m over the period, compared to a loss of £10.1m last year.

Meanwhile, revenues also rose from £335.3m to £601m over the same period.

Rob Wood, chief executive, said: “Breedon delivered a strong trading result in the first half of 2021, building on the recovery in demand which started in the second half of last year. This resilient performance reflects the commitment and efforts of all our colleagues; who have each demonstrated the highest levels of enthusiasm, professionalism and flexibility in working safely across the business, despite the challenges of the past fifteen months.

“This encouraging trading performance and cash generation has helped to strengthen the group’s balance sheet and we are pleased to announce our first dividend as planned, along with our commitment to a progressive dividend policy.

“Our first half performance, current trading conditions and improved visibility for the remainder of the year combine to give us greater confidence in the outlook for 2021 and we now expect underlying EBIT for 2021 to be at the top end of market expectations.

“The outlook for our end markets remains positive, with the UK and Irish governments committed to significant investment in infrastructure, combined with sustained structural demand for new build residential housing. With a strong balance sheet and new financing facilities we are well positioned to continue to invest in the growth of the business and to create value for all our stakeholders.”