Breedon continues post-pandemic recovery with results ahead

Leicestershire-based construction materials firm Breedon has posted a 31% rise in revenue, with the group expecting its full year result to be above the top end of current market expectations.

In a trading update for the 10 months to the end of October, Breedon said it has continued to benefit from strong end markets, with demand levels remaining encouraging.

The group said the recovery it experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively.

While it added that the dynamic cost environment is likely to persist into 2022, the medium-term outlook for its end markets and demand levels remains encouraging, with both the UK and Irish Governments committed to material long-term spending plans for construction.

The group posted revenue of £1,045m, up 31% versus the same period in 2019, while like-for-like revenue increased 15% on the same period.

It said underlying EBIT performance for the 2021 full year will now be stronger than expected and, assuming no adverse weather events, will be “slightly above the upper end of the range of market expectations”.

As at 23 November 2021, market expectations for underlying EBIT for the full year 2021 were an average of £129m with a range of £122m to £131m.