Breedon makes good progress in 'encouraging' first quarter

Construction materials outfit Breedon told investors at its annual general meeting on Tuesday that trading in the first quarter had been "encouraging", with good progress made across the group as a whole.

Breedon revealed that group revenues grew 50% year-on-year to reach approximately £211m and on a like-for-like basis were ahead 10%, having benefited from milder weather conditions.

Looking forward, Breedon said the underlying outlook remained "positive", with construction output forecast to grow nearly 3% in the UK and at an "appreciably stronger rate in the Republic of Ireland over the next three years".

Breedon said: "We continue to commit substantial investment across our business, focused on delivering operational improvements, increasing capacity, broadening our geographical coverage and extending our mineral reserves and resources."

The AIM-listed group also noted that its strong cash generation would ensure the continuing reduction of its net debt.

"We look forward to reporting our half-year results on 25 July. In the meantime, based on our performance in the year to date the board's expectations for the full year remain unchanged," concluded Breedon.

As of 1500 BST, Breedon shares had picked up 2.88% to 69.55p.