Last checked at 19 Apr 2013 07:00
19 April 2013
Breedon Aggregates Limited
("Breedon Aggregates" or the "Company")
AGM Statement
At 2.00pm today, Peter Tom, Chairman of Breedon Aggregates, will deliver the following outlook statement at the Company's Annual General Meeting.
"Trading in the first quarter reflected the dramatic swings in the weather. A challenging January was followed by a better February in which activity returned to more normal levels, only to be succeeded by snow and freezing temperatures during March, which had an inevitable impact on volumes, especially in asphalt.
"However, our underlying order book remains sound and with the return of more seasonal weather volumes have picked up. Generally we are more optimistic about the outlook than we were this time last year.
"Last week we announced two major acquisitions, adding significantly to our portfolio of quarries and downstream operations in England and Scotland and more than doubling our reserves and resources to approximately 400 million tonnes, enough to last 76 years at current rates of extraction. These are perfect examples of our strategy in action: acquiring bolt-on businesses which complement our existing operations, extend our geographical reach and offer excellent potential for earnings enhancement.
"The acquisitions were funded by a £61 million placing which was over-subscribed by investors. On behalf of the board, I would like to thank our shareholders for their continued support and also take this opportunity to welcome the new investors who participated in the placing.
"We are not immune to the stubbornly difficult economic environment in the UK, but our management team has consistently demonstrated its ability to deliver solid results in the most difficult market conditions and we continue to focus on delivering real value through self-help, tight cost control and careful selection of work.
"Our previous acquisitions have all added significant value to our core business, with the purchase of C&G in July 2011 in particular exceeding expectations. We fully anticipate being able to deliver value in the same way from our most recent acquisitions.
"Although it is still early in the year, at this stage we remain confident of delivering a performance in line with expectations in 2013.
"We will give a further update on the group's progress in our interim results announcement on 18 July 2013."
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For further information:
Breedon Aggregates Limited
Simon Vivian, Group Chief Executive
Ian Peters, Group Finance Director
01332 694010
Stephen Jacobs, Head of Communications
07831 764592
Cenkos Securities plc
Max Hartley / Nicholas Wells
020 7397 8900
More about Breedon Aggregates
Breedon Aggregates Limited is the largest independent aggregates business in the UK. Following completion of the recent acquisitions from Aggregate Industries and Marshalls, the group will operate 37 quarries, 22 asphalt plants, 48 concrete (including mortar) plants and two concrete block plants in England and Scotland and will employ approximately 1,000 people. The group will have approximately 400 million tonnes of mineral reserves and resources in the UK. Breedon Aggregates' strategy is to continue growing through consolidation of the UK heavyside building materials sector.
www.breedonaggregates.com