Breedon full year ahead of expectations

22nd Nov 2023 08:40

(Sharecast News) - Construction materials group Breedon hailed a "strong" performance in the 10 months to the end of October and said the outlook for the full year was ahead of expectations.

As a result of its strong performance in the year to date, Breedon said on Wednesday that it now expects to deliver full-year 2023 underlying earnings before interest and tax ahead of market consensus of £147.6m.

Breedon said robust pricing and "operational excellence" more than offset the effect of moderating volumes.

Revenue during the 10 months was up 8% compared to the same period a year earlier, while revenue in the four months to the end of October was 4% higher. On a like-for-like basis, revenue grew 5% in the 10 months, or 1% in the four-month period.

Breedon said that as expected, changes to building regulations in the UK that took effect in June impacted ready-mixed concrete volumes. Aggregate and asphalt volumes have continued to moderate. However, pricing has been sustained and the company said it has maintained tight control over its cost base.

Chief executive Rob Wood said: "Notwithstanding the market backdrop, the Breedon team continues to deliver and we are delighted to report a trading performance ahead of expectations.

"Against the uncertain political and economic backdrop, our teams have adapted well to deliver a compelling performance, whatever the prevailing market conditions."