Breedon: digging for victory.
Heavyside firm has high hopes for good trade results
Published: 05 December, 2011
DERBY: Breedon Aggregates reported that its anticipated trading results for the year to 31 December 2011 remained "comfortably in line with market expectations, assuming normal weather conditions in December". Sales volumes, said the company had held up well, with growth across all product groups in both Scotland and England.
Breedon's results announcement is due on 6 March 2012, but in its prelims, the company reported that sales revenue for the 10 months ended 31 October 2011 increased by 20% to £153m, including £4.9m from the former C&G Concrete business.
The English contracting business has been returned to profit, numerous asset disposals have been completed and the group's mineral reserves have been substantially increased. Most notably, all key raw material cost increases have been recovered during the year. C&G, Breedon stated, had "proved to be an excellent acquisition".
The outlook for 2012 is uncertain as forecast growth in the economy slows. However, the board of Breedon believes that there is significant scope to further develop the group. The current market conditions will create further opportunities to purchase assets at realistic prices and several potential acquisitions are currently under review, it stated.