BREEDON GROUP PLC
A year of outstanding delivery – record volumes, revenue and earnings
Building blocks in place for our next chapter of growth
Breedon Group plc (“Breedon” or the “Group”), a leading vertically-integrated construction materials group in Great Britain and Ireland, announces its audited annual results for the year ended 31 December 2021.
|
£ m except where stated |
2021 |
2020 |
Change % vs 2020 |
Change % vs 2019 |
LFL % vs 2020 |
LFL % vs 2019 |
|
Statutory Revenue |
1,232.5 |
928.7 |
33% |
33% |
21% |
15% |
|
Statutory EBIT |
127.4 |
61.6 |
107% |
17% |
|
|
|
Underlying EBIT1 |
133.6 |
76.5 |
75% |
15% |
66% |
6% |
|
Underlying EBIT1 margin |
10.8% |
8.2% |
|
|
|
|
|
Profit Before Tax |
114.3 |
48.1 |
138% |
21% |
|
|
|
Underlying Basic EPS 1 |
4.96p |
2.80p |
77% |
(2)% |
|
|
|
Adjusted Underlying Basic EPS2 |
5.98p |
3.15p |
90% |
18% |
|
|
|
Dividend per share |
1.6p |
|
|
|
|
|
|
Covenant Leverage3 |
0.8x |
1.9x |
|
|
|
|
|
ROIC4 |
9.5% |
5.5% |
|
|
|
|
HIGHLIGHTS
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|
Breedon delivered record volumes, revenue and earnings, supplying more material to our customers than ever before |
|
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Like-for-like volumes and revenue rebounded strongly; long-term structural growth trends persisted |
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Underlying EBIT margin recovered to 10.8%, ahead of 2020, progressing back towards 2019 levels; dynamic pricing and layered hedging policy mitigated commodity cost pressures |
|
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Cemex acquisition fully integrated and on track to realise target synergies |
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Strong free cash flow generation; covenant leverage reduced to 0.8x, one year ahead of plan, and a maiden dividend announced |
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ROIC increased to 9.5%, reflecting profitable growth and disciplined capital allocation |
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Strategy evolved; new financial metrics established and new sustainability framework set out with commitment to KPIs, targets and enhanced disclosure |
OUTLOOK
The demand environment remains robust with long-term commitments in place from policy makers to fund infrastructure and construction. Forecasters are predicting mid-single digit growth in 2022 and, while commodity cost volatility is expected to continue, the pricing backdrop is increasingly dynamic and we expect to fully recover input cost increases. We remain confident that Breedon will deliver profitable and cash generative growth in 2022, in line with management expectations.
ROB WOOD, CHIEF EXECUTIVE OFFICER, COMMENTED :
“2021 was a record year for Breedon. We navigated the second year of the pandemic successfully, supplied our customers with more materials than at any point in our history and fully integrated the Cemex assets. This excellent outcome was achieved at a time of constant change and the response from our colleagues, adjusting to the pandemic and the volatile economic backdrop, has been outstanding.
“Breedon is maturing. There are strong demand dynamics in our markets and we have many exciting opportunities ahead of us in the current year and beyond. Our GB Surfacing business is positioned for growth, the Cemex acquisition is integrated and poised to reap the benefits of our investment, and we see a number of bolt-on opportunities to in-fill our current footprint in GB and Ireland. Further afield, we have appointed a Business Development Director in the US as we advance our plans for a third platform.
“Breedon has come a long way in the past decade and we have a consistent track record for profitable and cash generative expansion. Our experienced leadership team and committed workforce operate a well-invested portfolio of assets with significant opportunities for sustainable growth. We have a strong balance sheet and will continue to take a measured approach to deploying our capital, taking the time required to find the right businesses to extend our portfolio. The building blocks are in place for our next chapter of growth.”