Breedon describes 'encouraging' trading in first three months
Construction materials company Breedon said on Tuesday that trading in the first three months of the year was “encouraging”, adding that it was starting to see the typical seasonal pick-up in activity towards the end of the quarter.
The AIM-traded firm, which was set to hold its annual general meeting later in the day, said there was “good” demand in Great Britain, where its business benefited from contributions from the Cemex acquisition, combined with a robust cement performance.
That, the board said, more than offset the impact of Covid-19 restrictions limiting construction activity in the Republic of Ireland.
Overall, group revenues in the first three months of the year were about £264m, making for an increase of 27% compared with the first quarter of 2020 - a period that largely predated Covid-19 restrictions.
On a like-for-like basis, revenues rose 7%.
Looking ahead, the company said the outlook for its markets remained positive, with construction output forecast to grow “significantly” in both the UK and the Republic of Ireland, led by infrastructure and housing development.
Based on the group's performance in the year to date, the board said its expectations for the full year were unchanged.
“Whilst we are still seeing some disruption from Covid-19, we are pleased to have delivered a good start to the year and believe the prospects for Breedon and for our industry are increasingly positive,” said chief executive officer Rob Wood.
Breedon said it would announce its results for the half-year ending 30 June on 22 July.
At 0939 BST, shares in Breedon Group were down 4.49% at 93.69p.