Breedon Group bullish after Lionmark acquisition

Construction materials giant Breedon Group has said it is ready for when activity in the construction sector picks up, after a recent acquisition provided a boost to its revenue position. 

While turnover in Q1 rose 9 per cent compared with the same period last year, activity across the group more broadly was hampered by bad weather, particularly in the US. 

Breedon said the rise in revenue was in part due to its £187 million acquisition earlier this year of Lionmark Construction Companies, in Missouri, US. 

Lionmark is a construction material and surfacing solutions business which recorded revenue of $246 million in November last year. 

The move is expected to more than double Breedon’s US revenue, it said at the time. 

Meanwhile, UK enquiries remained buoyant, with the group’s surfacing business winning work in the highways and aviation sectors.  

And while Ireland had a busy tendering period, it has incurred delays on key infrastructure projects, with volumes behind Q1 last year. 

“In the first quarter we have grown our revenues and delivered on our strategic objectives against an increasingly uncertain economic backdrop,” said CEO, Rob Wood. 

“We welcomed our new Lionmark colleagues to the group and the acquisition has increased our vertical integration and diversified our US exposure towards infrastructure and growing state road maintenance budgets.”  

Wood added: “While visibility is reduced, we remain optimally positioned to benefit when construction market activity improves.” 

Breedon’s revenue grew by 6 per cent in 2024, to £1.58 billion, generating a pre-tax profit of £125.4 million, down 7 per cent.