UK aggregates giant Breedon says sales are continuing to grow despite the ‘increasingly uncertain’ economic and political backdrop.
The north-Leicestershire headquartered business said business was up 12 per cent over the first six months of 2022, with sales of £671 million compared to a year earlier. Pre-tax profits were up almost 30 per cent at £59.5 million.
The business said the growth came on the back of things getting back to normal post-Covid and thanks to its clients being in relatively resilient markets such as infrastructure (which accounts for half of its revenues), industrial construction and house building (which is around 20 per cent of sales).
In a trading update the business said while the economic and political backdrop looked uncertain management remained optimistic for the coming months.
It said: “Our customers’ order books are healthy, the mechanism for passing through cost increases has traction and enquiry levels are encouraging.”
Chief executive Rob Wood said: “We enjoyed a strong start to 2022. Our teams are focused on getting pricing right, our end market exposure is supportive and that has produced excellent results, advancing our margins and returns towards our medium term targets.
“We completed two in-fill transactions during July, with further M&A activity in the pipeline, and we have continued to progress a broad range of sustainability initiatives, including a commitment to the science based targets initiative [to cut greenhouse gas emissions].
“Crucially, we achieved this strong outturn while keeping our people safe and well.
“We have continued to invest in our team as we prepare for our next chapter of growth and that was reflected in our recent engagement survey where response and engagement rates were the highest ever.
“Our colleagues are embracing the challenges presented by the uncertain backdrop, remaining focused on responding nimbly to local market requirements, winning new business, driving efficiencies and delivering first-class service to our customers. Now more than ever, our agile and entrepreneurial DNA will set us apart.”
