BREEDON GROUP PLC has announced its audited annual results for the year ended 31 December 2023. The company reported record revenue and underlying EBIT, which exceeded upgraded expectations. The dividend payout was significantly increased, reflecting the company's confidence in its cash generation and ability to deliver its strategy.
Financially, the company's disciplined execution of its sustainable growth strategy led to high-quality earnings, with record revenue increasing by 7%. This was driven by pricing contributing 9 percentage points, offset by a 2 percentage point volume reduction due to challenging macroeconomic conditions. The company also maintained a balanced financial position, with a reduced Covenant Leverage to 0.5x and net capital expenditure supporting further investment for growth.
BREEDON GROUP PLC also saw a resilient performance in tough markets, delivering excellent service to its customers. The company's strategic highlights included sustainability gaining momentum, with net zero targets submitted for formal validation and increased sales of lower clinker content cement. Additionally, the company completed three earnings-enhancing transactions and entered the US market through the acquisition of BMC Enterprises Inc.
Looking ahead, the company remains strategically well-positioned, with substantial optionality and multiple routes to growth. The near-term macroeconomic and geopolitical landscape remains uncertain, but the company expects its recent acquisition to be earnings-enhancing in the first full year of ownership. BREEDON GROUP PLC's CEO, Rob Wood, expressed pride in the record results and the team's response to challenging trading conditions, emphasizing the company's dependability and consistency.
In conclusion, BREEDON GROUP PLC's annual results for 2023 reflect a strong performance, with record revenue, increased dividend payout, and strategic advancements positioning the company for future growth and resilience in uncertain market conditions.