Coronavirus Update

Breedon Group PLC 2021 Interim Results

This content has been sourced from: https://www.investegate.co.uk/breedon-group-plc--b...

BREEDON GROUP PLC

 

Strong trading and operational performance leading to further deleveraging and increased expectations for full year

Breedon Group plc, ("Breedon" or the "Group") a leading construction materials group in Great Britain and Ireland, announces unaudited interim results for the six months ended 30 June 2021.

 

SIX MONTHS ENDED
30 JUNE 2021

SIX MONTHS ENDED
30 JUNE 2020

SIX MONTHS ENDED
30 JUNE 2019 
3

Revenue

£600.9m

£335.3m

£447.4m

Underlying EBIT 1

£56.4m

£(0.6)m

£49.5m

Profit/(loss) before tax

£46.2m

£(10.1)m

£39.5m

Underlying basic EPS 1

1.54p

(0.65)p

2.03p

Dividend per share

0.5p

n/a

n/a

Free cash flow

£34.3m

£41.5m

£16.8m

Net debt

£291.5m

£253.6m

£343.7m

Leverage 2

1.2x

1.7x

1.8x

ROIC

9.2%

5.2%

8.1%

1  Underlying results are stated before acquisition-related expenses, redundancy and reorganisation costs, property gains and losses, amortisation of acquisition intangibles and related tax items. References to an underlying profit measure throughout this announcement are defined on this basis

2  Leverage is Covenant Leverage as defined by the Group's banking facilities. This excludes the impact of IFRS 16 and includes the proforma impact of M&A

3   H1 2019 numbers are provided as a more relevant trading comparative

HIGHLIGHTS

· Strong trading performance supported by recovery in construction activity

· Growing momentum in Ireland despite partial lockdown of construction sector

· Like-for-like Revenue 17 per cent and Underlying EBIT 9 per cent ahead of H1 2019

· Integration of CEMEX Acquisition ahead of schedule

· Sustainability strategy developed; KPIs and targets to be published in the autumn

· Leverage reduced to 1.2x at end of June, within 12 months of CEMEX Acquisition

· Refinancing completed; diversifying sources of credit and extending maturity profile

· First interim dividend announced; commitment to a progressive dividend policy

· Underlying EBIT for 2021 now expected to be at the top end of market expectations

 

ROB WOOD, CHIEF EXECUTIVE OFFICER, COMMENTED:

"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."

 

* Market expectations are defined as Breedon compiled sell side analyst consensus.  As at 21 July 2021 the range of market expectations for Underlying EBIT for the full year 2021 was £109 million to £128 million with an average of £117 million.

 

See thee link at the top of the page for more on the results.