Breedon Group plc, a leading vertically-integrated construction materials group in Great Britain, Ireland, and the United States, has released a trading update ahead of its Annual General Meeting. The first quarter saw a 5% reduction in revenue, or 9% on a like-for-like basis, attributed to ongoing macroeconomic uncertainty and reduced construction activity due to wet weather conditions.
In Great Britain, wet weather significantly impacted trading conditions, but the company completed two bolt-on acquisitions, enhancing its capabilities in asphalt and surfacing. Ireland experienced a strong tendering season and is well-positioned for the rest of the year, supported by healthy housing and infrastructure markets. Cement operations successfully completed scheduled kiln maintenance shutdowns and continued to expand the use of alternative fuels and lower clinker content products.
Breedon also made strategic progress in the USA, launching its third platform with the acquisition of BMC. The initial trading weeks under ownership have been encouraging, with a positive outlook. Rob Wood, Chief Executive Officer, expressed confidence in the company's discipline, focus, and strong customer relationships to deliver against unchanged expectations for 2024.
The company will announce its interim results for the six months ending 30 June 2024 on Wednesday 24 July 2024. Breedon Group plc, with c.1.4bn tonnes of mineral reserves and resources, delivers essential products to the construction sector, including specialty materials, surfacing, and highway maintenance operations. The company's strategy aims to create sustainable value for all stakeholders, delivering growth through organic improvement and acquisition in the heavyside construction materials market.
Breedon shares (BREE) are traded on the Main Market of the London Stock Exchange and are a constituent of the FTSE 250 index.