Displaying items by tag: Breedon Group

UK: Breedon Group has acquired marine aggregates producer Severn Sands. With sales revenues of Euro10.5m in 2021, Severn Sands holds multiple dredging licences for operations in the Bristol Channel.

Breedon Group said that the acquisition ‘enhances our operational capability, secures scarce mineral reserves and resources, and ensures our downstream operations in the Gloucestershire and South Wales region are fully vertically integrated.’

UK: Breedon Group recorded sales of Euro798m in the first half of 2022, up by 12% year-on-year from Euro714m in the first half of 2021. Its earnings before interest and taxation (EBIT) increased by 22% to Euro77.9m from Euro63.9m, while its profit after tax increased by 29% to Euro70.7m from Euro54.9m.

The group said “We are optimistic for the remainder of 2022. Our customers’ order books are healthy, the mechanism for passing through cost increases has traction and enquiry levels are encouraging. We therefore expect to deliver underlying EBIT at the top end of the range of consensus expectations.”

Chief executive officer Rob Wood said “We enjoyed a strong start to 2022. Our teams are focused on getting pricing right, our end market exposure is supportive and that has produced excellent results, advancing our margins and returns towards our medium term targets. We completed two in-fill transactions during July 2022, with further mergers and acquisitions activity in the pipeline, and we have continued to progress on a broad range of sustainability initiatives, including a commitment to the Science Based Targets Initiative.”

UK: Breedon Group’s sales revenue grew by 33% to Euro1.48bn in 2021 from Euro1.11bn in 2020. Its statutory earnings before interest and taxation more than doubled to Euro153m from Euro74m. Cement and concrete sales volumes increased by 20% to 2.4Mt and 23% to 3.2Mm³ respectively. The group described 2021 as an ‘exceptional’ year for its cement business due to pent-up demand following the outbreak of the Covid-19 pandemic.

“2021 was a record year for Breedon. We navigated the second year of the pandemic successfully, supplied our customers with more materials than at any point in our history and fully integrated the Cemex assets,” said chief executive officer Rob Wood.

UK: A consortium led by Australia-based First Graphene dedicated to developing graphene-enhanced cement has won Euro228,000 in UK government funding. Innovation agency Innovation UK selected the consortium for its work’s potential to contribute towards cement and concrete’s carbon footprint reduction of 25% by 2030. UK-based Breedon Cement represents the cement industry within the consortium.

UK: A court has fined Breedon Group Euro350,000 for endangering workers at one of its quarries. Environmental Data Services News has reported that a blast caused a flyrock projection event as workers set off explosives at the quarry.

UK: Breedon Group has told investors that its consolidated sales in the first ten months of 2021 were Euro1.24bn, up by 31% compared to their levels in the corresponding period of 2020. The group said that its ‘layered hedging policy’ mitigated key commodity cost pressures during the period. As such, it raised its 2021 full-year underlying earnings before interest, depreciation and taxation (EBIT) forecast to more than Euro145m.

UK: Breedon Group recorded first-half sales of Euro701m in 2021, up by 79% year-on-year from Euro391 in the first half of 2020. The group’s profit for the period was Euro27.8m, compared to a Euro16.1m loss in the first half of 2020. Its cement sales rose by 47% to Euro140m from Euro95.0m. Cement and ready-mixed concrete sales volumes increased by 50% to 1.2Mt and 70% to 1.7Mm3 respectively.

Chief executive officer Rob Wood said “Breedon delivered a strong trading result in the first half of 2021, building on the recovery in demand which started in the second half of last year. This resilient performance reflects the commitment and efforts of all our colleagues, who have each demonstrated the highest levels of enthusiasm, professionalism and flexibility in working safely across the business despite the challenges of the past fifteen months.” He added “Our first-half performance, current trading conditions and improved visibility for the remainder of the year combine to give us greater confidence in the outlook for 2021 and we now expect underlying earnings before interest and taxation for 2021 to be at the top end of market expectations.”

UK: Breedon Group’s revenue remained stable in 2020 at Euro1.08bn. Its underlying earnings before interest and tax (EBIT) fell by 34% year-on-year to Euro89.3m in 2020 from Euro136m in 2019. Cement sales volumes stayed stable at 2Mt but ready-mixed concrete sales volumes dropped by 13% to 2.6Mm³ from 3Mm³. The group reported a strong second half of 2020 following coronavirus-related disruption.

“Although we remain mindful of the ongoing impact of Covis-19, with the worst of the pandemic now hopefully behind us and some welcome clarity on Brexit, I believe the prospects for Breedon and for our industry are increasingly positive,” said Pat Ward, Breedon Group’s chief executive.

UK: The Competition and Markets Authority (CMA) has accepted Breedon Group’s proposed divestments as part of its acquisition of certain assets from Cemex subsidiary Cemex Investments. The agreement will see the divestment of 14 sites - including a cement terminal, two quarries and 10 ready-mix plants - to Tillicoultry Quarries.

The building materials producer said that it “notes the announcement today by the CMA that it has accepted Breedon's undertakings in lieu of a reference to a Phase 2 investigation in respect of its acquisition of certain assets from Cemex Investments Limited.”

UK: Breedon Group has appointed James Brotherton as its chief financial officer (CFO) designate with effect from 1 January 2021. He was previously the CFO of Tyman between 2010 and 2019, prior to which he was Director of Corporate Development for five years. Prior to Tyman, Brotherton worked in investment banking roles at Citi and HSBC, after qualifying as a chartered accountant at Ernst and Young. He is currently a director of the Quoted Companies Alliance (QCA) and represents the QCA on the Takeover Panel.

As announced previously, Rob Wood, Breedon Groups' current Group Finance Director, will succeed Pat Ward as chief executive officer (CEO) upon Ward’s retirement during 2021. It is anticipated that Brotherton will be appointed to the board as CFO at that point to ensure an orderly transition.