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Breedon Group PLC on Wednesday reported record revenue for 2021 on strong demand, a supportive market backdrop and long-term growth trends.
In 2021, the Leicestershire, England-based construction materials company generated a pretax profit of £114.3 million, more than double the pretax profit of £48.1 million posted in 2020.
Underlying earnings before interest and tax amounted to £133.6 million, reflecting a 75% increase from £76.5 million the year before. Breedon attributed this to volume and price increases, coupled with a successful hedging strategy that helped to mitigate the impacts of input price rises.
The company posted revenue of £1.23 billion, up 33% from £928.7 million recorded the year before.
Breedon noted that revenue and earnings in 2021 reached record levels. The company credited this growth to resilient demand, a supportive market backdrop and long-term structural growth trends in infrastructure.
‘Both the UK and Irish governments pledged their commitment to long-term investment into infrastructure and construction, with the UK publishing its most ambitious strategy to date,’ the construction materials firm explained.
Breedon declared a maiden dividend of 1.6p.
The company noted that forecasts are predicting mid-single-digit growth this year.
Looking ahead, Breedon expects to fully recover input cost increases. It is also confident of delivering profitable and cash generative growth in 2022, in line with its expectations.
Shares were up 1.8% at 80.90 pence each on Wednesday morning in London.
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