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Beedon profits drop in H1 amid 'testing' conditions, rising costs

By BFN News | 08:34 AM | Wednesday 05 September, 2018


Construction materials Group Beedon said Wednesday first-half profits fell slightly as the severe weather and rising input costs kept a lid on performance. For the six months to 30 June, profit before tax fell 3% to £31.2m and revenue rose 16% to £378.4m. The company said 'testing' trading conditions were exacerbated by the severe weather in the first quarter and rising input costs throughout the period. The underlying earnings (EBIT) margin, the company's principal performance measure, was unchanged at 11.1% for the half year, as increasing input costs weighed. The company said, however, that it remained comfortable with current market expectations for 2018. 'We had anticipated a challenging 2018 and so it proved in the first half, with testing trading conditions exacerbated by the severe weather in the first quarter and rising input costs throughout the period. Despite these headwinds, we delivered a resilient performance.,' said Peter Tom CBE, Executive Chairman. 'We continue to view the medium- to long-term outlook in GB positively, with infrastructure spending forecast to increase steadily over the next three years and Government strategies to address our chronic housing shortage expected to fuel continued growth in the residential sector.' 'Market conditions in Ireland are expected to be even healthier, with construction output in the Republic of Ireland forecast to grow by approximately 28 per cent in the three years to 2020 and NI expected to sustain construction output at approximately £3 billion per annum from 2018 to 2022.' At 8:34am: (LON:BREE) Breedon Group share price was +0.4p at 79p Story provided by StockMarketWire.com

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