Breedon Group saw all three of its divisions improve in a year the executive chairman hailed as “one of the most productive years in our history”.
The Leicestershire-based group has announced its yearly results, reporting a pre-tax profit of £71.2 million for 2017,
Overall, turnover was up 43% to £652.4m, while net debt was down 31% to £109.8m.
The firm saw an increase in tonnes of aggregates sold, up from 11.4m tonnes in 2016 to 16m tonnes in 2017.
Sales of ready-mixed concrete were also up, rising to 3.3m cubic metres up from 1.9m, while sales of asphalt held steady at 1.9m tonnes.
Breedon put its successful year down to a number of factors including improved performances from all three divisions, strong organic earnings growth, contributions from acquisitions, investment in mineral assets, capacity and operational improvements and the planned acquisition of Tarmac quarry and asphalt assets.
Peter Tom CBE, Breedon Group executive chairman, said: “2017 was one of the most productive years in our 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.
“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.”
Breedon operates the UK’s largest cement plant, two import terminals, 60 quarries, 26 asphalt plants, nearly 200 ready-mixed concrete plants across the country.
It also employs around 2,200 people and has 750m tonnes of mineral reserves and resources.
Looking to the company’s future, Mr Tom added: “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 still believe that continuing to deliver capital growth, by reinvesting our resources in the organic development of our business and in earnings-enhancing acquisitions, is the best way of rewarding our shareholders for the foreseeable future.
“We also keep our Alternative Investment Market (AIM) quotation under review. We feel no particular pressure to transfer to the main market whilst AIM continues to provide us with a platform from which to pursue our growth ambitions, but do not rule out a full listing in the longer term.
“I would like to thank everyone in Breedon, together with all our contract hauliers and the many companies who do business with us, for their continued enthusiastic support for the Group.”
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