One to watch this year is Breedon Aggregates as, in line with the resurgence of the UK construction industry, the company has seen a stark increase in group turnover as highlighted in last year’s financial reports. In addition to this, a marked increase in company profits has also been highlighted.
Showcasing an 18% increase in revenues for 2015, Breedon Aggregates’ turnover totalled in at a notable £318.5m for 2015, showcasing considerable growth in the present market – a market which, while recovering, is still relatively volatile by nature. In line with the growth, Breedon Aggregates also enjoyed a rise in pre-tax profits for 2015, rising by approximately 46% to a value of £31,3m.
The underlying EBITDA for Breedon Aggregates saw an increase up to £54.9m, with its margin increasing up to 17.2% for 2015, effectively meeting the group’s medium term target for EBITDA margin as set all the way back in 2010, thus positioning the company in a relatively strong position for the coming years.
The results come as the company is in the final stages of securing its £336m acquisition of leading construction material supplier, Hope Construction Materials, which is hoped to be checked off from a regulatory respective mid-2016. Of course, should the acquisition go as plans, predictions for the group’s future revenue levels could considerably overshadow the success of 2015.
With Hope Construction Materials also still releasing new, branded products to the market, this is expected to further strengthen the brand in the coming times, as well as providing even greater access to group turnovers should the deal with Breedon Aggregates go ahead.
“We begin an exciting new era in 2016 with the planned acquisition of Hope and we look forward to the future with confidence,” commented Breedon Aggregates’ Executive Chairman, Peter Tom. This, of course, ties in with governmental commitments to investing back into infrastructure and an increase workloads for the entirety of the sector as leading infrastructure projects come into action.