Breedon Group’s profit slumps as rain slows construction sector progress
Construction materials supplier Breedon reported a dip in its profit despite increased revenue following a major US acquisition earlier this year.
The London-listed firm, headquartered in Leicestershire, saw its pre-tax profit fall by 18 per cent on a statutory basis to £46.5m in the first six months of the year, down from £56.5m in the same period in 2023.
Breedon’s revenue rose by three per cent to £764.6m on the back of the firm’s entry into the US market following its acquisition of American concrete maker BMC Enterprises for $300m (£238m).
The firm said the market remained “challenging” in the UK and that wet weather conditions have hindered progress. However, Breedon added that it was encouraged by the new government’s commitment to housebuilding.
CEO Rob Wood said: “For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement.
“We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business.
“We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material.
“We moved our sustainable growth strategy forward on all fronts in the first half of 2024 and were pleased to see this recognised by CDP with our first ratings placing us at the forefront of our sector for climate change and water security.
“During this time the quality and flexibility of the Breedon team, of whom I am incredibly proud, have kept us close to our customers, accelerated our drive for efficiencies, and strengthened our operations.
“As the economic and political clouds clear in GB, our markets will return to growth in time and we will be well placed to grow and succeed.”