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Breedon Group Plc - Annual Results 2020

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Breedon Group plc

('Breedon' or 'the Group')

Annual Results 2020

Breedon, a leading construction materials group in Great Britain and Ireland, announces its audited annual results for the year ended 31 December 2020.

 

2020

2019

Change

Revenue

£928.7 million

£929.6 million

(0%)

Underlying EBIT

£76.5 million

£116.6 million

(34%)

Profit before tax

£48.1 million

£94.6 million

(49%)

Underlying basic EPS

 2.80 pence

5.08 pence

(45%)

Net debt

£318.3 million

£290.3 million

 

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

21.7 million tonnes of aggregates sold (2019: 20.2 million tonnes)

3.3 million tonnes of asphalt sold (2019: 3.0 million tonnes)

2.6 million cubic metres of ready-mixed concrete sold (2019: 3.0 million cubic metres)

2.0 million tonnes of cement sold (2019: 2.0 million tonnes)

Highlights

· Robust performance against backdrop of considerable disruption caused by COVID-19

· Strong recovery in second half, with like-for-like revenue and Underlying EBIT ahead of prior year

· Positive outcome for the year made possible by the support and hard work of all our colleagues

· Sustainability agenda progressed, appointment of first Group Head of Sustainability and developing a clear roadmap for Breedon

· CEMEX Acquisition completed 31 July, integration on-track

· Strong balance sheet and liquidity maintained

· Leverage 2.1x at year-end due to strong second half trading and free cash flow generation

· Intention to pay maiden dividend during 2021

Pat Ward, Group Chief Executive, commented:

"The pandemic brought unprecedented pressures to bear on the Group in 2020, which demanded an exceptional response from everyone in our business and I would like to say thank you to all our stakeholders for their support during a difficult year. Most especially I would like to thank our colleagues who have worked tirelessly and enabled us to recover strongly in the second half to deliver a very creditable outcome for the year.

Although we remain mindful of the ongoing impact of COVID-19, with the worst of the pandemic now hopefully behind us and some welcome clarity on Brexit, I believe the prospects for Breedon and for our industry are increasingly positive. With robust commitments from the UK and Irish governments to infrastructure investment and continuing long-term demand for housing, forecasters are expecting this year and next to see steady growth in demand for our products in both countries.

During 2020 we proved our ability to deliver a resilient performance against a backdrop of unprecedented disruption. Our track record, coupled with improving market conditions, gives us considerable confidence in the long-term outlook for our Company."