Trading Statement

RNS Number : 2888Z

Breedon Aggregates Ld

12 January 2011

 



12 January 2011

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 the 29^th March 2011.

Trading Performance

Pro forma trading results for the year to December 2010 are expected to be in line with market expectations, notwithstanding the impact of the poor weather in the final month of the year which particularly affected the business in Scotland.  Sales volumes in England were well ahead of the previous year, while volumes in Scotland were slightly down.  

Operational progress

Breedon Aggregates was created in September 2010, following the acquisition of Breedon Holdings Limited (formerly the UK businesses of Ennstone plc) by Marwyn Materials Limited.

Good progress has been made towards repositioning the Group following the acquisition. The management team in England has been strengthened with the appointment of Tim Hall as chief executive and several other senior management changes have followed.  The business in Scotland continues to be led by Alan Mackenzie.

An extensive rebranding exercise is almost complete and operational improvements in safety, procurement, logistics and quality systems are underway.  Some surplus land, plant and equipment have been sold.

Outlook

The outlook for the early part of 2011 is likely to be reasonable as work delayed by weather is completed.  While there remains some uncertainty over the impact of the Comprehensive Spending Review on local authority budgets, the recovery in private sector construction is expected to continue.  The Construction Products Association's latest forecasts anticipate a 2 per cent fall in construction output in 2011.  The recently secured A9 Crubenmore contract and the Scottish Water supply agreement will help to underpin our business in Scotland.

The directors continue to believe that there is significant scope to further develop the business and continue to review several acquisition opportunities.

While there is unlikely to be any significant market recovery in the current year, we remain confident about making further progress.

- ends -

More about Breedon Aggregates

Breedon Aggregates Limited is the largest independent aggregates group in the UK after the five global majors.  It operates 29 quarries, 19 asphalt plants and 27 concrete plants in England and Scotland and employs approximately 700 people.

The group has strong asset backing, with approximately 180 million tonnes of mineral reserves and resources in the UK, providing an estimated life of approximately 50 years at current output levels.

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

For further information:

Breedon Aggregates Limited

Simon Vivian, Group Chief Executive

Ian Peters, Group Finance Director

01332 694010

Stephen Jacobs, Head of Communications

07831 764592

Cenkos Securities plc

Max Hartley

020 7397 8900

 

END

 

 

TSTQFLFFFFFXBBL