Breedon Aggregates reports promising growth
Published: 09 March, 2016
Breedon Aggregates has announced its audited results for the year ended 31 December 2015 and reports strong growth as well as promising forecasts for the future of the group.
The business saw £318.5m in group revenue, a 18.1% increase on the previous year. This partially stems from a growth in sales, as seen in an extra 1m tonnes of aggregate sales over 2014 for a total of 8.7m tonnes in 2015. Following this, the group reports that it has finalised its largest ever contract; to supply and lay asphalt for the Aberdeen Western Peripheral Route, the largest road improvement scheme in the UK. This contract is valued at £55m and was awarded in early 2016.
In addition, Breedon Aggregates was pleased to announce in November the planned £336m acquisition of Hope Construction Materials in a move to capitalise on the positive growth of the company and drive the group forward even further. Hope Construction Materials was formed in 2013 out of the merger of Tarmac and Lafarge. The planned acquisition has yet to be approved by the Competition and Markets Authority but Breedon Aggregates expects to secure this toward the middle of 2016.
Peter Tom, executive chairman, said: “The outlook for the business continues to be encouraging. The government remains committed to infrastructure investment and all the relevant forecasting bodies predict modest but sustained growth in construction output over the next few years. This means a steady growth in demand for our products. Against this background, volumes are expected to recover gradually to pre-recession levels by 2020.”