Increased infrastructure spending and mild weather this winter saw profits nearly double last year at Breedon Aggregates (BREE). Sales of aggregates, asphalt and ready-mixed concrete were all higher, with sales revenue up by 20 per cent, highlighting the significant operational gearing in the business.
IC TIP:
Buy
at
49p
Margins rose from 12.6 per cent to 14.3 per cent, and are now approaching the group's medium-term target of 15 per cent. Trading was notably brisk in England, while growth in Scotland was more subdued because there is currently less visibility on spending plans there.
Two additional quarries were acquired during the year at a cost of £33.4m, and a further £15.4m was spent on investments and other capital projects.
