Business
Trading Update November 2021
Trading Update November 2021.
About this update from Breedon Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3205T\n Breedon Group PLC\n 24 November 2021\n \n \n \n \n \n \n \n \n 24 November 2021\n \n \n \n \n \n BREEDON GROUP PLC\n \n \n \n \n \n Full year result to be slightly above top end of current market expectations*\n \n \n Strong trading performance and robust cost management \n \n \n \n \n \n \n \n \n Breedon Group plc (\"Breedon\" or the \"Group\"), a leading vertically integrated construction materials group in Great Britain and Ireland today reports on its performance for the 10 months to 31 October 2021. \n \n \n \n \n \n Trading performance\n \n \n · \n Group revenue of £1,045m up 31% versus the same period in 2019\n \n \n · \n Like-for-like1 revenue increased 15% on the same period in 2019\n \n \n · \n Positive margin performance reflects dynamic pricing and cost recovery actions\n \n \n · \n Layered hedging policy continued to mitigate key commodity cost pressures \n \n \n \n \n \n Breedon has continued to benefit from strong end markets, with demand levels remaining encouraging across the Group. Trends evident in the first half have persisted with momentum in residential housebuilding and infrastructure spending continuing to drive volume growth. Ireland continued to gain traction during the second half following the lifting of Government restrictions on non-essential construction. \n \n \n \n \n \n Pricing actions have increasingly reflected the dynamic cost environment and our layered hedging policy has delivered visibility of energy and carbon costs. As indicated in July, allowing for the natural lag to implement price adjustments, we have secured full cost recovery in the second half, leading to margin improvement.\n \n \n \n \n \n Underlying EBIT2 performance for the 2021 full year will now be stronger than we expected and, assuming no adverse weather events, will be slightly above the upper end of the range of market expectations*.\n \n \n \n \n \n Financial position\n \n \n Cash generation has remained strong and the Group has continued to degear, assisted by lower levels of capital expenditure. Our two-year capital investment plan, with its emphasis on sustainability linked projects, is unchanged and amounts to c.£170m over 2021 and 2022. However, we now expect capex for 2021 will be c.£70m with the balance deferr...