(Alliance News) - Breedon Group PLC on Wednesday blamed poor weather and an uncertain economic backdrop as it reported a drop in first quarter sales.
Shares in Breedon fell 4.2% to 364.00 pence each in London on Wednesday.
The Derby, England-based construction materials firm said trading during the first quarter was impacted by the "ongoing macroeconomic uncertainty and reduced construction activity due to wet weather conditions."
This led to softer volumes which were partially offset by resilient pricing, it said.
As a result, revenue reduced by 5%, or 9% on a like-for-like basis, when compared to the first quarter of 2023.
Breedon was updating investors on trading ahead of Wednesday's annual general meeting.
Breedon said UK trading conditions were particularly affected by the wet weather.
Nonetheless Chief Executive Rob Wood said he was "encouraged" by the strategic progress in the first quarter.
"Whilst there were fewer trading days due to the timing of Easter, and it was impacted by exceptionally wet weather, seasonally it is the least significant trading period for Breedon and our industry," he explained.
"We have laid good foundations for the remainder of the year; progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the US market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024."
By Jeremy Cutler, Alliance News reporter
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Breedon (BREE)