Breedon, the FTSE 250 vertically integrated construction group in the UK, Ireland and USA has announced a trading update ahead of its AGM today.
Volumes were softer in the quarter due to wet weather conditions and macroeconomic uncertainty, however this was offset by resilient pricing. As a result, revenue reduced by 5%, or 9% on a like-for-like1 basis, when compared to the first quarter of 2023. Expectations for the full year, however, were unchanged.
Breedon completed two acquisitions within its GB division in the year to date, and launched its third platform in the USA with the acquisition of BMC, which completed in March. Ireland had a strong tendering season and is well positioned for the rest of the year, with the Group’s Cement business delivering two scheduled maintenance shutdowns during the period, both on time and within budget.
Rob Wood, Chief Executive Officer, commented: “I am encouraged by our strategic progress in the first quarter. Whilst there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry. We have laid good foundations for the remainder of the year; progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the US market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024.”