Breedon to go on buying spree

Grant Prior 11 years ago

Breedon Aggregates is vowing to continue its buying spree after a string of deals saw the independent materials business post a strong set of first full year results today.

Results for the year to December 31 2011 show the firm generated turnover of £168.9m and made a pre-tax profit of £1.5m while selling 4.1m tonnes of aggregate, 1.4m tonnes of asphalt and 400,000 cubic metres of ready-mixed concrete.

Breedon spent £10.8m last July buying Lincolnshire based C& G Concrete out of administration and acquired Nottingham Readymix for £900,000 at the start of this year.

Executive chairman Peter Tom said: “We believe there is significant scope to further expand the Group and we remain committed to securing additional bolt-on acquisitions of earnings-enhancing aggregates related businesses.

“The current market conditions are definitely creating opportunities to purchase assets at realistic prices and several acquisition opportunities remain under review.”

Breedon has also improved safety at the firm after the new owners acquired it in 2010.

Chief executive Simon Vivian said “the poor safety culture of the business was a key area of concern when we took over.”

Vivian said the OFT probe into the merger of Lafarge and Tarmac could lead to dispoals by the industry giants which could interest Breedon.

He said: “The industry is expecting significant disposals to be required if the deal goes ahead and we continue to monitor the situation closely.”

The company is confident about the construction market for the coming year.

Vivian said: “We anticipate reasonable activity levels, supported by a modest recovery in the housing sector and continuing investment in retail and commercial construction.

“There are a number of large contracts breaking in our markets, including the expansion of the Nottingham tram network, the Corby ring road, Peterhead Prison and improvements at Inverness Airport.”

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