Breedon Group Plc - Half-year Report

Breedon Group plc

 

 

Interim results (unaudited) for the six months ended 30 June 2019

 

Breedon Group plc, a leading construction materials group in Great Britain and Ireland, announces its unaudited interim results for the six months ended 30 June 2019.

 

 

 30 June 2019

 30 June 2018

Change

Revenue

£447.4 million

£378.4 million

+18%

Underlying EBIT

£49.5 million

£42.0 million

+18%

Profit before tax

£39.5 million

£30.4 million

+30%

Underlying basic EPS

2.03 pence

1.96 pence

+4%

Net debt

£343.7 million

£383.6 million

-10%

 

 

 

 

 

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

 

9.9 million tonnes of aggregates sold (30 June 2018: 9.3 million tonnes)

1.4 million tonnes of asphalt sold (30 June 2018: 1.2 million tonnes)

1.5 million cubic metres of ready-mixed concrete sold (30 June 2018: 1.6 million cubic metres)

1.0 million tonnes of cement sold (30 June 2018: 0.9 million tonnes)

 

Highlights

·    An improved performance has been delivered across the business

·    The results benefited from a full six-month contribution from Lagan

·    The Group maintained strong cash generation

·    Leverage has been held at 2.0x EBITDA, post adoption of IFRS 16

·    A healthy acquisition pipeline is in place

·    July has started well and the medium-term market outlook remains positive

·    The Board remains confident of meeting full year expectations

 

 Pat Ward, Group Chief Executive, commented:

 

"We are pleased once again to be reporting an improved performance by the Group in the first half.  The period began well, with benign weather in the first quarter and generally healthy demand for our products, particularly in England, Wales and the Republic of Ireland, somewhat offset by fewer large projects in Scotland.  Our performance in the second quarter was adversely impacted by lower volumes in Great Britain due to a flat construction market, ongoing project delays and competitive trading conditions. However demand in Ireland remained robust.

 

"Despite the near term uncertainties, July has started well and enquiry levels in Great Britain are encouraging, giving us confidence in a stronger second half.  We have a healthy acquisition pipeline, the medium-term outlook for our markets is positive and the Board remains confident of meeting full year expectations."