Breedon Group has announced its unaudited results for the six months to 30 June, 2017.
The former Breedon Aggregates business posted a strong profit improvement and the former Hope Construction Materials business made a robust contribution, even after taking into account the shutdowns of both of its cement kilns for planned annual maintenance and upgrade during the first half, which were completed on time and to budget.
Group revenue for the half-year was £326.3 million (2016: £163.0 million) and underlying earnings before interest and tax (EBIT) increased by 57% to £35.8 million (2016: £22.8 million).
The underlying EBIT margin, Breedon Group’s principal performance measure, was 11.0% (30 June, 2016: 14.0%), reflecting, as anticipated, the lower margin delivered by the former Hope business and the phasing of Hope Cement’s shutdowns.
The former Breedon Aggregates business however, delivered an underlying EBIT margin of 15.8%, comfortably ahead of its medium-term target of 15% by 2020. While it will clearly be more challenging in the wake of the Hope acquisition, the company continues to target a 15% underlying EBIT margin for the Group by 2020.
Notwithstanding the seasonality of the business, the Group continued to be strongly cash-generative.