Breedon delivers strong year-to-date performance

Construction materials group Breedon delivered a strong performance in the 10 months to 31 October, with increased revenues, improved underlying earnings and continued robust cash generation.

Breedon highlighted that its solid results were achieved despite a flat construction market in the UK, where lower industry sales volumes were recorded for all major heavyside construction materials in the nine months ended 30 September.

Group revenues grew 8% to approximately £800m as sales of aggregates increased 4%, asphalt 8% and cement 6%, while ready-mixed concrete volumes declined 5%.

The AIM-listed group said assuming no materially adverse weather conditions were witnessed throughout the remainder of the year, full-year underlying EBIT looked set to be in line with current market expectations.

Breedon also noted that with the integration of Lagan now largely complete, the firm remains confident of delivering anticipated annual cost synergies.

"Looking ahead, while the upcoming general election and ongoing Brexit negotiations create near-term uncertainty, the longer-term outlook for our markets remains encouraging with forecasters expecting GB construction to grow modestly in 2020 whilst Ireland is expected to see further double-digit growth," said Breedon.

"Our focus on driving organic improvement, together with a healthy acquisition pipeline, gives us confidence that we will make further progress in 2020."

As of 0945 GMT, Breedon shares were up 6.17% at 63.70p.