Trading Statement

RNS Number : 9338R

Breedon Aggregates Ld

26 November 2012

 



News release

26 November 2012

BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")

Trading Update

Breedon Aggregates Limited issues the following statement in advance of its preliminary results announcement due on 5 March 2013.

Trading Performance

Anticipated trading results for the year to 31 December 2012 remain in line with market expectations, assuming normal weather conditions in December.  Sales volumes of aggregates and ready-mixed concrete are ahead in both England and Scotland, assisted by positive contributions from acquisitions, C&G Concrete and Nottingham Readymix in England and Rothes Glen in Scotland. Sales volumes of asphalt are down year on year in line with market demand.

Sales revenue in the second half of the year has been slightly stronger than the first half  and the EBITDA margin improvements reported in the first half have been largely maintained.

Operational progress

Breedon continues to make good progress, despite the significant difficulties faced by the UK construction market, with reported construction output and mineral production volumes both sharply down in the year to date.  We have maintained our focus on management of costs and careful selection of work, with the result that both England and Scotland have made solid progress this year.

In October we announced our withdrawal from bidding for the majority of the Lafarge and Tarmac assets being divested as a precondition of their construction materials joint venture.  We were ultimately unable to match the value expectations of the sellers for any of the assets on offer, in line with our often-stated position that we will only pursue acquisitions which add value for our shareholders.  Several other potential acquisition opportunities are currently being investigated.

Outlook

The outlook for 2013 remains uncertain, with the Construction Products Association forecasting no return to growth before 2014.  However, our management team have repeatedly demonstrated their ability to deliver superior performance in difficult markets and we remain confident that we will make further progress next year.  

More about Breedon Aggregates

Breedon Aggregates Limited is the largest independent aggregates group in the UK after the five global majors.  It operates 27 quarries, 18 asphalt plants and 40 ready-mixed concrete plants in England and Scotland and employs approximately 800 people.

The group has strong asset backing, with nearly 200 million tonnes of mineral reserves and resources in the UK.

Breedon Aggregates' strategy is to grow through consolidation of the UK heavyside building materials sector.

For further information:

Breedon Aggregates Limited

Peter Tom, Chairman

Simon Vivian, Group Chief Executive

Ian Peters, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc

Max Hartley / Nicholas Wells

020 7397 8900

 

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