BREEDON GROUP PLC has released its unaudited results for the six months ended 30 June 2024, showcasing strategic progress and a resilient performance. The company's revenue increased by 3%, supported by its entry into the US market, with pricing contributing 2 percentage points offset by an 8 percentage point volume reduction due to wet weather conditions and challenging markets in Great Britain. The underlying EBIT increased by 2%, backed by disciplined operational efficiency and cost recovery. The financial position retains strategic flexibility, with covenant leverage comfortably within the target range of 1x to 2x. The company's seasonal working capital outflow was as expected, and the post-tax ROIC was 8.8%.
Operational performance benefitted from a flexible local model and agile execution. While GB revenue decreased by 5%, the company saw a robust surfacing performance and modest price progression, partially offset by volume declines related to the more challenging market. In Ireland, the underlying EBIT improved by 37%, with a successful tendering season and a healthy order book. BMC, the company's US acquisition, is trading ahead of the prior year and plan, contributing nearly four months of revenue and earnings with healthy markets and a robust order book. The cement underlying EBIT margin improved to 15.2%, with soft volumes offset by resilient pricing, lower energy costs, and increased provision of lower clinker content cement.
BREEDON GROUP PLC has an active M&A pipeline in all geographies, with a scalable third platform launched in the US through the acquisition of BMC. The company's sustainability agenda is succeeding, with a focus on health, safety, and wellbeing, and progress in decarbonizing the cement business. Strategic initiatives and investment are driving operational excellence, with a quarry operational improvement program being implemented and BMC integration progressing well.
Looking ahead, the company expects growth in all its markets from 2025 as the economic and political landscape stabilizes. The new UK Government's growth agenda appears supportive of the construction market, and in the US, market fundamentals and long-term growth prospects are underpinned by significant infrastructure and housing deficits. Management expectations for the full year remain unchanged, with underlying EBIT slightly more weighted towards the second half than is typical.
Rob Wood, Chief Executive Officer, expressed his satisfaction with the company's resilient performance, particularly in the face of challenging market conditions in Great Britain. He highlighted the achievement of a major strategic objective in March, entering the US and establishing the company's third platform with the transformative acquisition of BMC.