Breedon Aggregates (BREE) expects to deliver stronger than expected profits for the full year, and analysts at Numis have upgraded their forecasts from £10.5m to £11.5m and EPS to 1p a share.
Sales volumes of aggregates, ready-mixed concrete and asphalt are all up on the previous year in both England and Scotland, with turnover boosted further by the acquisition of Aggregate Industries' operations in Northern Scotland and landscape specialist Marshall's quarries in England.
The investigation by the Competition Commission into Breedon's acquisition of Aggregates' assets in Scotland is continuing, and an outcome is expected in January, although Breedon expects the findings will affect a small part of one operation, and may require disposal of a limited number of assets.
Output has been underpinned by a general improvement in the economic climate. For the coming year the Mineral Products Association is forecasting 2-4 per cent growth in aggregates volumes and asphalt, and 3-5 per cent in ready-mixed concrete, while the Construction Products Association is forecasting a return to growth in UK construction output in 2014.
