Declaración comercial de noviembre
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PLC DEL GRUPO BREEDON
Strong performance to date
Outlook for full year 2023 ahead of expectations
Breedon Group plc (Breedon or the Group), a leading vertically-integrated construction materials group in Great Britain and Ireland, provides the following trading update for the ten months to 31 October 2023.
Rendimiento comercial
The Group has delivered a strong performance to October 2023, enabled by the resilient vertically-integrated business model and first class team. Robust pricing and operational excellence more than offset the effect of moderating volumes.
When compared to the same period in 2022, revenue for the first ten months increased 8% and revenue for the four months to 31 October increased 4%. On a like-for-like1 basis revenue grew 5% in the first ten months, or 1% for the four months to 31 October.
As expected, changes to building regulations in the UK that took effect in June impacted ready-mixed concrete volumes. Aggregate and asphalt volumes have continued to moderate. However, pricing has been sustained and we have maintained tight control over our cost base.
We continue to generate good free cash flow and are on track to deliver a further reduction in covenant leverage at the year end, providing financial flexibility to continue to invest for growth.
Destacados
· The GB business remained focused on self-help actions to mitigate the impact of a softening market, delivering the operational excellence programme implemented in the first half. Surfacing completed a number of aviation projects and we continued to be well represented on National Highways work.
· In Ireland, market dynamics were unchanged with tendering in the Republic of Ireland underpinned by long-term structural growth drivers and healthy budgets while the pipeline in Northern Ireland was impacted by the ongoing lack of a governing assembly. The integration of Robinson Quarry Masters, which completed in the first half, continues to progress according to plan.
· The Cement business maintained a robust performance in GB and Ireland. The Hope plant completed its second scheduled kiln shutdown on time and on budget. The Kinnegad Cement plant maintained its world leading performance with alternative fuel substitution in excess of 80%.
· We continue to make progress in respect of our sustainability priorities; our Breedon Balance range of products is gaining traction and we continued to reduce the clinker content of our cement. The results of our 2023 colleague engagement survey showed pleasing increases in both participation and engagement.
· Following the move to the Main Market in the first half, we were pleased to enter the FTSE 250 index during September.
Outlook
The Group has delivered a strong performance in the year to date, as a result of which we now expect to achieve full year 2023 underlying EBIT ahead of market consensus2.
In the UK, the latest CPA Autumn report forecast continues to show a soft construction outlook driven by low levels of housing activity. In the Republic of Ireland, the large budget surplus and falling debt burden enabled further commitments to infrastructure spending and housebuilding in Budget 2024.
Due to the macroeconomic landscape, visibility in the construction materials sector remains limited in the short-term, particularly in GB, offset by long-term structural growth drivers in infrastructure and housebuilding. Consequently, the Group continues to focus on self-help, executing operational and commercial excellence programmes while pursuing opportunities in our healthy M&A pipeline.
Rob Wood, director ejecutivo, comentó:
"Notwithstanding the market backdrop, the Breedon team continues to deliver and we are delighted to report a trading performance ahead of expectations. Against the uncertain political and economic backdrop, our teams have adapted well to deliver a compelling performance, whatever the prevailing market conditions.
"Our strategic focus on ensuring Breedon is a great place to work, taking care of our people and the communities around our sites, has once again been reflected in both our financial performance as well as our colleague engagement, of which I am particularly proud. But we never settle - we will continue to seek ways to operate as efficiently and sustainably as possible, invest in our people and grow our business so we are positioned to succeed when the construction materials market returns to growth."
Notas:
1. Like-for-like refleja los valores reportados ajustados por el impacto de las adquisiciones y enajenaciones.
2. Company compiled consensus can be found on the Breedon IR website Analysts & consensus estimates - Breedon (breedongroup.com); FY23 consensus mean Underlying EBIT including associates and joint ventures is £147.6m.
CONSULTAS | |
Grupo Breedon plc | +44 (0) 1332 694010 |
Rob Wood, director ejecutivo James Brotherton, director financiero | |
Louise Turner-Smith, Directora de Relaciones con Inversores | +44 (0) 7860 911909 |
MHP (asesor de relaciones públicas) | +44 0 20 3128 8100 |
Reg HoareRachel FarringtonCharles Hirst
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Acerca de Breedon Group plc
Breedon Group plc, un grupo líder en materiales de construcción integrado verticalmente en Gran Bretaña e Irlanda, ofrece productos esenciales para el sector de la construcción. Breedon posee 1 millones de toneladas de reservas y recursos minerales con una vida útil prolongada, y suministra productos y servicios de valor agregado, incluidos materiales especiales, superficies y operaciones de mantenimiento de carreteras, a una amplia gama de clientes a través de su extensa red local de canteras, concreto premezclado y plantas de asfalto.
Las dos plantas de cemento del Grupo, con buenas inversiones, participan activamente en una serie de prácticas de reducción de carbono, que incluyen la utilización de materias primas alternativas y combustibles con bajas emisiones de carbono. Los 3,800 colegas de Breedon encarnan nuestro compromiso de "Marcar una diferencia material" mientras el Grupo continúa ejecutando su estrategia para crear valor sostenible para todas las partes interesadas, generando crecimiento a través de mejoras orgánicas y adquisiciones en el mercado de materiales de construcción pesados. Las acciones de Breedon (BREE) se negocian en el mercado principal de la Bolsa de Valores de Londres y forman parte del índice FTSE 250.
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