Breedon performing ahead of expectations as firm hints at acquisitions
Breedon, the construction materials group, has said it has a “healthy” M&A pipeline in its first trading update since being admitted to the FTSE 250.
The Leicestershire company says it has delivered a “strong” performance in the ten months to the end of October, with revenues increased by 8% on 2022.
Breedon says changes to building regulations in the UK that took effect in June impacted ready-mixed concrete volumes and that aggregate and asphalt volumes have continued to moderate. However, pricing has been sustained and it has maintained tight control over its cost base.
In a statement, the company said: “Due to the macroeconomic landscape, visibility in the construction materials sector remains limited in the short-term, particularly in GB, offset by long-term structural growth drivers in infrastructure and housebuilding. Consequently, the group continues to focus on self-help, executing operational and commercial excellence programmes while pursuing opportunities in our healthy M&A pipeline.”
Rob Wood, CEO, added: “Notwithstanding the market backdrop, the Breedon team continues to deliver and we are delighted to report a trading performance ahead of expectations. Against the uncertain political and economic backdrop, our teams have adapted well to deliver a compelling performance, whatever the prevailing market conditions.
“Our strategic focus on ensuring Breedon is a great place to work, taking care of our people and the communities around our sites, has once again been reflected in both our financial performance as well as our colleague engagement, of which I am particularly proud. But we never settle – we will continue to seek ways to operate as efficiently and sustainably as possible, invest in our people and grow our business so we are positioned to succeed when the construction materials market returns to growth.”
