Breedon Group, a construction materials group in Great Britain, Ireland, and the US, has reported a resilient financial performance for the ten months ending 31 October 2024.
Despite a challenging market in Great Britain, the company has seen a revenue increase of 7% compared to the same period in 2023, and an 11% increase for the four months to 31 October.
However, on a like-for-like basis, revenue decreased by 4% in the initial ten-month period and by 1% for the four months.
The company has continued to focus on operational excellence and robust pricing strategies, which have helped offset market difficulties. Significant investments in assets have been made to enhance operational performance further.
Breedon has also generated strong free cash flow and is on track to reduce covenant leverage by the year-end, which will provide financial flexibility for future growth investments.
In Great Britain, the market conditions have been challenging, but performance has improved since the half-year mark. The Irish business has continued to perform well, with both regions experiencing encouraging levels of forward enquiries.
BMC integration is progressing well, with the business performing robustly and pricing remaining strong under Breedon's ownership.
Additionally, the company has made progress in sustainability, with carbon reduction targets now validated by SBTi.
Looking ahead, Breedon maintains a positive outlook for the full year, with expectations to deliver an underlying EBIT in line with market consensus.
Despite market risks, it expects 2024 to mark a low point in construction materials volumes and plans to explore opportunities in its M&A pipeline.
Breedon Group CEO Rob Wood said: "These are exciting times at Breedon. We now operate across three geographies, have built a first-class team, and are on track to deliver a further year of record revenue and operating profit.
"2024 has not been an easy year, particularly in GB where soft market conditions have been compounded by poor weather. But we have again proven the power of our vertical model, whatever the economic, political or environmental backdrop happens to be.
"Since our last Capital Markets Event in 2021 we have made significant progress. Looking forward we see further opportunities for growth and we look forward to sharing those plans today."
