Breedon Aggregates has reported a rise of 19% in interim profits as part of a solid performance in the first half of the year, while sales have remained the same as last year and debts have been eliminated.
For the first six months to June 30 2016, the company’s revenue rose by 2% up to £163.0 million (2015: H1: £160.5 million).
In the first half of the year, the firm sold 0.5 million m3 of ready-mixed concrete (2015: 0.4 million m3), 0.9 million tonnes of asphalt sold (2015: 0.9 million tonnes) and 4.6 million tonnes of aggregates (2015: 4.5 million tonnes), while profit before tax for the period went up by almost 20% to £20.9 million (2015 H1: £17.5m).
At the same point last year, the company had a net debt of £58.3 million, but a year later it had a net crash of £17.6 million.
These results are likely to be revealed by the firm ahead of its £336 million acquisition of Hope Construction Materials, which is due to be complete on August 1 2016.
Peter Tom, Executive Chairman of Breedon Aggregates, said that the company has delivered an excellent operating performance in the first half of the year, with both of their businesses improving revenues, making strong contributions and EBIT margins.
Tom added: “Whatever the prognosis for the UK economy, we remain confident that we can continue to generate value for our shareholders.
“We have some major contracts which will help to underpin our performance during a period of uncertainty, along with a strong balance sheet and a record of strong cash generation in challenging markets.”
He also said that the company has shown its ability to deliver a strong performance through determined self-help and that they will maintain this discipline regardless of market conditions, while he also commented that the company remains confident of meeting its market expectations for the rest of the year.