In its annual results for the year ended 31 December 2017, the construction materials group recorded revenue rising 43% to £652.4 million (2016; £454.7m) while profit before tax increased 52% to £71.2m (2016; £46.8m). Net debt also fell 31% to £109.8m (2016: £159.3m).
Along with improved performances across all three Group divisions, Breedon's results were boosted by the business completing a number of business acquisitions including Tarmac, Hope Construction Materials, Sherburn, Pro Mini Mix and Humberside Aggregates.
Pat Ward, Chief Executive, said: "In May we secured another valuable route to market for our aggregates and cement with the purchase of Pro Mini Mix Concrete, Mortars and Screeds Limited (Pro Mini Mix), a mini mix operator in the West Midlands.
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"This was followed in August by the acquisition of Humberside Aggregates Limited (Humberside Aggregates), bringing with it around three million tonnes of mineral reserves, opening up new markets for us in East Yorkshire and Humberside and enabling us to internalise supplies to our concrete plants in the region.
"In December, we announced the planned acquisition of four quarries and an asphalt plant from Tarmac, in exchange for 27 of our ready-mixed concrete plants and a cash payment of £4.9 million. This acquisition is in line with our strategy of expanding our aggregates portfolio and streamlining our concrete network, whilst enabling us to replace third-party aggregates providers with our own sources of supply. Subject to approval from the Competition and Markets Authority (CMA), the transaction is expected to be completed in the next couple of months."
Executive Chairman Peter Tom said 2017 was "one of the most productive years" in the Group's history.
"We completed the integration of our largest-ever acquisition, concluded two bolt-on purchases and announced an important transaction with Tarmac that, subject to approval by the competition authorities, will see us streamline our ready-mixed concrete network in exchange for a substantial new reserve of minerals and a strategically valuable asphalt plant," he said.
"This did not, however, distract us from our operational focus and we once again delivered a solid financial performance.
"Our business is in great shape and we are well positioned to benefit from the medium-term growth in residential and infrastructure development, to which the majority of our material is supplied. We look to 2018 and beyond with confidence and optimism."
(LM)
