Breedon's performance stronger than expected
Construction materials group Breedon expects its full-year result to be above the top end of current market expectations after posting a 31 per cent rise in revenue.
In a trading update for the 10 months to the end of October, the group, which has quarries in Shropshire and concrete plants in the Black Country and Staffordshire, said it has continued to benefit from strong end markets, with demand levels remaining encouraging.
The firm said the recovery it experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively.
The group posted revenue of £1.045 million, up 31 per cent versus the same period in 2019, while like-for-like revenue increased 15 per cent on the same period.
A company statement said: "Breedon has continued to benefit from strong end markets, with demand levels remaining encouraging across the group.
"Trends evident in the first half have persisted with momentum in residential housebuilding and infrastructure spending continuing to drive volume growth. Ireland continued to gain traction during the second half following the lifting of government restrictions on non-essential construction.
"Pricing actions have increasingly reflected the dynamic cost environment and our layered hedging policy has delivered visibility of energy and carbon costs. As indicated in July, allowing for the natural lag to implement price adjustments, we have secured full cost recovery in the second half, leading to margin improvement.
"While the dynamic cost environment is likely to persist into 2022, the medium-term outlook for our end markets and demand levels remains encouraging, with both the UK and Irish Governments committed to material long-term spending plans for construction."
