Breedon backs 2024 profit outlook on "resilient" trade

(Alliance News) - Breedon Group PLC on Thursday said revenue has improved year-to-date, and it left expectations for 2024.

The Derby-England based construction materials supplier said in a trading update that revenue increased 11% year-on-year in the four months to October 31. Revenue was down 1% in the same period on a like-for-like basis, however.

Revenue increased 7% in the 10 months to October 31 year-on-year, but was down 4% on a like-for-like basis.

"The group has delivered a resilient performance in the 10 months to 31 October 2024 with robust pricing and a focus on operational excellence more than offsetting the impact of a challenging GB market," it said.

"In GB, although market conditions remained challenging overall, performance has improved since the half year and our Irish business has continued to perform well. Both businesses have seen encouraging levels of forward enquiries."

Breedon said its 2024 expectations remain unchanged. It expects to deliver underlying earnings before interest and tax, including associates and joint ventures, in line with the market consensus of GBP169.4 million, which would be up 8.5% from GBP156.2 million in 2023.

The company also said enquiry and tendering levels are "healthy", looking towards 2025.

"With interest rates falling and increased political clarity, the conditions for a housing-led recovery coupled with an ongoing focus on infrastructure investment are in place, most notably in GB", it said.

Chief Executive Officer Rob Wood added: "2024 has not been an easy year, particularly in GB where soft market conditions have been compounded by poor weather. But we have again proven the power of our vertical model, whatever the economic, political or environmental backdrop happens to be."

Breedon is hosting a capital markets event at the London Stock Exchange on Thursday.

Shares in Breedon are up 2.2% to 449.00 pence in London on Thursday afternoon.

By Michael Hennessey, Alliance News reporter

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