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(Alliance News) - Breedon Group PLC on Wednesday reported double-digit profit drop in 2020 but said it is considering a maiden dividend payment in the year ahead.
The construction materials company said revenue in 2020 totalled GBP928.7 million, compared to GBP929.6 million reported for 2019. Pretax profit fell sharply, however, to GBP48.1 million from GBP94.6 million, a 49% decrease.
Breedon explained that its profit was hurt by an increase in administrative expenses to GBP79.9 million from GBP71.6 million, while cost of sales jumped to GBP630.8 million from GBP587.2 million.
During 2020, the company said it sold 21.7 million tonnes of aggregates, up from 20.2 million tonnes sold the year before. In addition, 3.3 million tonnes of asphalt was sold, also higher than 3.0 million tonnes sold in 2019.
Breedon noted that ready-mixed concrete sales fell to 2.6 million cubic metres from 3.0 million cubic metres. Cement sales were unchanged year-on-year at 2.0 million tonnes.
Going forward, Breedon said it plans to pay maiden dividend during 2021.
"During 2020 we proved our ability to deliver a resilient performance against a backdrop of unprecedented disruption. Our track record, coupled with improving market conditions, gives us considerable confidence in the long-term outlook for our company," said Chief Executive Pat Ward.
Breedon shares were trading 2.9% lower in London on Wednesday morning at 88.99 pence each.
In a separate statement, the company confirmed that James Brotherton, who joined Breedon as chief financial officer designate at the start of 2021, will succeed Finance Director Rob Wood as chief financial officer and will join the board on April 1.
Breedon also said Helen Miles will join the company as a non-executive director on April 1. She is currently Capital & Commercial Services director and a member of the executive committee of Severn Trent PLC, the FTSE 100 water utility. Prior to Severn Trent, she held senior leadership positions with Homeserve PLC and BT Group PLC.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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