International construction materials company Breedon Group plc, with locations in Great Britain, Ireland and the United States, provided the following trading update ahead of the group’s Annual General Meeting.
Trading during the first quarter was impacted by the ongoing macroeconomic uncertainty and reduced construction activity due to wet weather conditions. This led to softer volumes which were partially offset by resilient pricing. As a result, revenue reduced by 5%, or 9% on a like-for-like basis, when compared to the first quarter of 2023.
- In Great Britain, trading conditions were particularly affected by the wet weather. The company completed two bolt-on acquisitions; Eco-Asphalt, a well-connected asphalt plant in the North West, and Phoenix Surfacing which enhanced its surfacing capability in the Midlands.
- Ireland had a strong tendering season and is well positioned for the rest of the year, supported by healthy housing and infrastructure markets and the return of the governing Assembly to Stormont.
- Cement delivered two scheduled kiln maintenance shutdowns, on time and within budget, and continued to expand the use of alternative fuels and the provision of lower clinker content products.
- The company launched its third platform in the United States with the acquisition of BMC, which completed on March 7, 2024. The first weeks of trading under its ownership have been encouraging, the integration is progressing well and the outlook is positive.
Rob Wood, chief executive officer, commented, “I am encouraged by our strategic progress in the first quarter. Whilst there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry.
“We have laid good foundations for the remainder of the year; progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the U.S. market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024,” Wood stated.