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Breedon, the Leicestershire-based construction materials supplier, has reported a decline in pre-tax profit despite an increase in revenue, driven by its recent expansion into the US market.
The company, listed on the London Stock Exchange, saw pre-tax profit fall by 18% to £46.5m in the first half of the year, compared to £56.5m in the same period last year. Revenue increased by 3% to £764.6m, aided by the acquisition of BMC Enterprises, a US concrete manufacturer, for $300m (£238m).
Breedon noted ongoing challenges in the UK market, including adverse weather conditions affecting operations. However, the firm remains optimistic due to new government support for housebuilding.
Rob Wood, CEO, praised the team’s performance amidst difficult UK market conditions and highlighted the significance of the US expansion: “Achieving our strategic objective in March with the acquisition of BMC has laid the groundwork for our US operations.”
Wood also emphasised the company’s growth strategies, including recent acquisitions and organic growth in the UK, and noted Breedon’s progress in sustainable growth, as recognised by its first CDP ratings for climate change and water security.
