Breedon suspends operations across UK sites
Breedon Group has temporarily suspended production at the majority of its UK sites, the construction materials specialist announced on Thursday.
Aim-listed Breedon said it had taken the decision, which coincided with a sudden slump in demand, following the latest guidance from the government and to ensure the safety of its workers and customers.
The exception is its Hope cement plant in Derbyshire, along with operations that serve critical supply needs. Its sites in Ireland will also remain operational, pending further guidance from the Irish government.
The firm told investors that its trading performance in 2020 had been broadly in line with expectations.
But it continued: "However, following the more stringent measures introduced by the UK government on 23 March, there has been an immediate and significant reduction in demand for our products, which we expect to continue until restrictions on movement are relaxed."
"Given the current economic uncertainty and the as yet unquantifiable longer-term impact of Covid-19 on our trading environment, we are unable to provide accurate market guidance for the current year.
"However, looking further ahead, we have a fundamentally robust and diversified business with traditionally strong cashflow characteristics, and are well-positioned to prosper in the long term.”
As at 25 March, Bredon said it had £335m of drawn debt on its facility, cash of £60m and an undrawn committed facility of £220m.
As at 1315 GMT, shares in Breedon were off 6% at 64.0p.