(Alliance News) - Breedon Group PLC on Wednesday said its profit expectations for 2021 are now above the upper-end of market forecasts as momentum in residential housebuilding drives growth.
The construction materials supplier said annual underlying operating profit will now be stronger than initially expected and slightly above the upper end of the range of market expectations. Analyst consensus averages GBP129 million, within a range of GBP122 million to GBP131 million, according to Breedon.
Shares were up 2.3% to 101.20 pence in London on Wednesday near midday. They're up 16% year-to-date.
Revenue in the ten months to October 31 was GBP1.05 billion, up 31% from 2019. Like-for-like revenue increased 15% on the same period in 2019. Breedon highlighted its layered hedging policy in continuing to mitigate key commodity cost pressures.
"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," Breedon said.
Breedon said the recovery it experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively
Despite a "dynamic cost environment" likely to persist into 2022, the Leicestershire-based firm pointed to encouraging medium-term outlook and demand levels, with "both the UK and Irish governments committed to material long-term spending plans for construction".
By Will Paige; willpaige@alliancenews.com
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Breedon (BREE)