The Courier & Advertiser (Angus and Dundee)
Record sales and profits for materials firm Breedon
CONSTRUCTION: Ethiebeaton quarry owner saw pre-tax profits rise by 52%
Construction material giant Breedon Group built up record profits last year due to a rise in the number of residential and infrastructure developments.
Breedon, whose Scottish headquarters is at Ethiebeaton, near Monifieth, saw its sales rise from £454.7 million in 2016 to £652.4m for the year ending on December 31.
Pre-tax profits increased by more than 50% from £46.8m to £71.2m in a year where the company’s debt dropped by almost £50m to £109.8m.
During the year the company sold 16m tonnes of aggregates (2016: 11.4m tonnes), 1.9m tonnes of asphalt – a similar level to 2016 – and 3.3m cubic metres of ready-mixed concrete (2016: 1.9m cubic meters).
In December the group announced its biggest ever deal, valued at £16.5m, to acquire four quarries and an asphalt plant from Tarmac.
Breedon executive chairman Peter Tom 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.”
In the deal with Tarmac, Breedon will take over the Daviot Quarry in Inverness and quarries in Cumbria, North Wales and a site in West Wales which also has an asphalt plant.
In settlement of the agreed price, Breedon will transfer 27 of its readymixed concrete plants and a payment of £4.9m in cash to Tarmac, which is owned by global group CRH.
Breedon operates the country’s largest cement plant, two cementitious import terminals, around 60 quarries, 26 asphalt plants, nearly 200 readymixed concrete plants and three concrete products plants nationwide.
The group employs around 2,200 people and has around 750m tonnes of mineral reserves and resources.
rmclaren@thecourier.co.uk