Breedon sees 'increasingly positive' prospects

Construction materials group Breedon saw increased revenue in the first quarter of 2021 compared to the equivalent period last year, which largely predated COVID-19 restrictions.

The firm issued a trading update in advance of its Annual General Meeting on Tuesday (20 April).

It said trading in the first three months of the year ‘was encouraging and we started to see the typical seasonal pick-up in activity towards the end of the quarter’.

Breedon added that there was good demand in the GB market, ‘where our business benefited from contributions from the CEMEX acquisition, combined with a robust cement performance, which more than offset the impact of COVID-19 restrictions limiting construction activity in the Republic of Ireland’.

Overall, group revenues for the quarter were approximately £264m, an increase of 27% compared with the first quarter of 2020. On a like-for-like basis, excluding the impact of acquisitions and disposals, revenues increased by 7%.

Chief executive officer Rob Wood, who succeeded Pat Ward at the beginning of this month, said: ‘While we are still seeing some disruption from COVID-19, we are pleased to have delivered a good start to the year and believe the prospects for Breedon and for our industry are increasingly positive.’

The firm said the outlook for its markets ‘remains positive with construction output forecast to grow significantly in both the UK and the Republic of Ireland this year, led by infrastructure and housing development’.

It added that, based on the group’s performance in the year to date, ‘the Board's expectations for the full year are unchanged’.

Breedon said it will announce results on 22 July for the half year ending 30 June.

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