Construction materials group Breedon delivers record results
Construction materials group Breedon has delivered record volumes, revenue and earnings, supplying more material to its customers than ever before.
The group, which has quarries in Shropshire and concrete plants in the Black Country and Staffordshire, made a pre-tax profit of £114.3 million for the 12 months ended December 31 2021, compared with £48.1 million a year earlier. Meanwhile, revenue rose to £1.2 billion from £928.7 million.
Volumes grew strongly, supported by the £178 million acquisition of quarries and ready-mix plants from Cemex in 2020. Over the course of 2021, Breedon supplied 35 per cent more aggregates, 37 per cent more asphalt, and 29 per cent more ready-mixed concrete than in 2020.
Rob Wood, chief executive, said: “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. This excellent outcome was achieved at a time of constant change and the response from our colleagues, adjusting to the pandemic and the volatile economic backdrop, has been outstanding.
“There are strong demand dynamics in our markets and we have many exciting opportunities ahead of us in the current year and beyond. Our GB Surfacing business is positioned for growth, the Cemex acquisition is integrated and poised to reap the benefits of our investment, and we see a number of bolt-on opportunities to in-fill our current footprint in GB and Ireland. Further afield, we have appointed a business development director in the US as we advance our plans for a third platform.
“Breedon has come a long way in the past decade and we have a consistent track record for profitable and cash generative expansion. Our experienced leadership team and committed workforce operate a well-invested portfolio of assets with significant opportunities for sustainable growth. We have a strong balance sheet and will continue to take a measured approach to deploying our capital, taking the time required to find the right businesses to extend our portfolio. The building blocks are in place for our next chapter of growth.”