18 November
2015
Breedon Aggregates
Limited
("Breedon" or the
"Company")
Trading Update
Trading performance
Breedon continues to trade strongly,
with product volumes in the first 10 months ahead of the comparable
period in both England and Scotland.
Underlying trading conditions in
England remain strong. In Scotland, road spending remains
subdued but several large contracts are about to commence which
will run through next year and into 2017.
For the 10 months to 31 October 2015,
Group sales volumes of aggregates increased by 19 per cent, asphalt
by 23 per cent and concrete by 20 per cent compared to last
year.
Unaudited Group revenue for the same
10 months increased by 22 per cent to approximately £274
million. Lower hydrocarbon costs have continued to benefit
performance in the second half of the year but forward market
pricing is now starting to reflect these lower costs.
Assuming that weather conditions
remain favourable for the remainder of the year, the Group's
underlying EBITDA for the full year is expected to be at the top
end of current market expectations1.
Outlook
The outlook remains positive, with a
number of projects already secured for next year. We are
confident of making further progress in 2016 and, assuming that
completion of our acquisition of Hope Construction Materials takes
place as expected in the second quarter of next year (as announced
separately today), our progress is likely to be significantly
enhanced.
We will announce our preliminary
results for the year to 31 December 2015 on 9 March
2016.
1 Market expectations for
underlying EBITDA are believed to range from £50 million to £53
million).
Note to editors
Breedon Aggregates is the largest
independent aggregates business in the UK after the global
majors. It operates 53 quarries, 26 asphalt plants, 59
ready-mixed concrete plants and three concrete block plants in
England and Scotland and employs approximately 1,250 people.
The group has strong asset backing, with more than 500 million
tonnes of mineral reserves and resources. Breedon's strategy
is to grow organically and through consolidation of the smaller end
of the UK heavyside building materials sector.
For further information:
Breedon Aggregates
Limited
Simon Vivian, Group Chief
Executive
Rob Wood, Group Finance
Director
01332 694010
Stephen Jacobs, Head of
Communications
07831 764592
Cenkos Securities plc
Max Hartley, Ian Soanes
(Nomad)
020 7397 8925
Peel Hunt (joint broker)
Justin Jones / Mike Bell 020 7418
8900
