The Breedon Group has delivered a resilient performance in the ten months to 31 October 2024 with robust pricing and focus on operational excellence more than offsetting the impact of a challenging GB market, according to the group’s latest financial statement.
When compared to the same period in 2023, revenue for the first ten months increased 7% and for the four months to 31 October increased 11%. On a like-for-like
1 basis revenue decreased 4% in the first ten months an decreased 1% for the four months to 31 October.
The group has continued to invest in its assets, providing further opportunities to optimise operational performance. It said that it has generated good free cash flow and are on track to deliver a further reduction in covenant leverage at the end, providing us with the financial flexibility to continue to invest for growth.
It said the main highlights of the financial year were:
*In GB, although market conditions remained challenging overall, performance has improved since the half year and our Irish business has continued to perform well. Both businesses have seen encouraging levels forward enquiries.
*The integration of BMC is now well advanced; performance in the period under our ownership was robust ahead of plan with pricing remaining strong.
*During October BMC completed its first transaction under Breedon ownership, acquiring a manufacturer o masonry blocks, retaining wall blocks, pavers, stone, and brick products located in Western Illinois. The business is highly complementary to BMC and generates revenue of c. US$9.0m per annum.
*Breedon’s Cement business successfully completed the scheduled kiln shutdown and replacement of the primary crusher. Kinnegad has maintained its world leading performance with alternative fuel substitution consistently in excess of 80%.
*The further progress in respect of the group’s sustainability priorities with its carbon reduction targets nowm validated by SBTi.
Breedon said: ” The Group has sustained its resilient performance in the year to date and our expectations for the full year remain unchanged. We continue to expect to deliver full year 2024 underlying EBIT in-line with market consensus. Enquiry and tendering levels across all three geographies are healthy as we look forward to 2025. With interest rates falling and increased political clarity, the conditions for a housing-led recovery coupled with an ongoing focus on infrastructure investment are in place, most notably in GB.
Rob Wood, Chief Executive Officer, commented:
“These are exciting times at Breedon. We now operate across three geographies, have built a first-class team, are on track to deliver a further year of record revenue and operating profit.
“2024 has not been an easy year, particularly in GB where soft market conditions have been compounded by poor weather. But we have again proven the power of our vertical model, whatever the economic, political or environmental backdrop happens to be.
“Although we have immense faith in our people, our assets and our model, we are always striving to improve. A our Capital Markets Event today, we are announcing an evolution of our growth strategy, clarifying our priorities and refreshing our medium-term targets.
“Since our last Capital Markets Event in 2021 we have made significant progress. Looking forward we see further opportunities for growth and we look forward to sharing those plans with you today.”
