Breedon Group PLC on Wednesday said it gave a ‘resilient performance’ despite ‘challenging’ market conditions, with continued revenue growth despite profit falling.
The construction materials company said pretax profit dropped 18% to £46.5 million from £56.5 million.
Revenue rose 2.9% to £764.6 million from £742.7 million, ‘supported by our entry into the US’.
Revenue for Breedon’s Great Britain segment decreased 5.2% to £492.4 million, from £519.6 million. The Derby, England-based company said its ‘robust surfacing performance and modest price progression’ was ‘partially offset by volume declines related to the more challenging market’.
Breedon also increased its half-year dividend by 13% to 4.5 pence from 4.0p, ‘demonstrating confidence in the long-term growth outlook’.
‘For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement,’ commented Chief Executive Officer Rob Wood. ‘We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business.
‘We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material.’
Going forward, Breedon said it expects growth ‘in all our markets from 2025’ as the ‘economic and political landscape stabilises’.
‘The new UK Government’s growth agenda appears supportive of the construction market, in particular housebuilding and infrastructure,’ the company noted, adding that it expects to benefit from ‘falling interest rates in the months ahead’.
Closer to home, ‘Our healthy balance sheet provides us with the strategic flexibility to invest for growth, maintain our progressive dividend policy and execute bolt-on acquisitions across each platform,’ Breedon added.
It said its management expectations for the full year remain unchanged.
‘As the economic and political clouds clear in GB, our markets will return to growth in time and we will be well placed to grow and succeed,’ CEO Wood added.
Breedon shares were trading 4.5% lower at 391.75p in London on Wednesday.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
