Breedon, the construction materials supplier, has reported a decrease in profit despite an uptick in revenue, attributed to its significant expansion into the US market earlier this year.
The company, which is based in Leicestershire and listed on the London Stock Exchange, experienced an 18 per cent drop in pre-tax profit to £46.5m for the first half of the year, a decline from the previous year's £56.5m during the same period.
Despite the dip in profits, Breedon's revenue saw a three per cent increase to £764.6m, bolstered by its foray into the American market with the acquisition of BMC Enterprises, a concrete manufacturer, for $300m (£238m).
The firm acknowledged that the º£½ÇÊÓƵ market continues to pose challenges, with adverse weather conditions impacting operations. Nonetheless, Breedon expressed optimism following the new government's pledge to support housebuilding, as reported by .
Rob Wood, CEO of Breedon, remarked on the company's performance amidst tough market conditions in Great Britain: "For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement."
Wood highlighted the strategic milestone achieved with the US expansion: "We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business."
He also noted the company's growth strategies: "We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material."
"We moved our sustainable growth strategy forward on all fronts in the first half of 2024 and were pleased to see this recognised by CDP with our first ratings placing us at the forefront of our sector for climate change and water security."
"During this time the quality and flexibility of the Breedon team, of whom I am incredibly proud, have kept us close to our customers, accelerated our drive for efficiencies, and strengthened our operations."
"As the economic and political clouds clear in GB, our markets will return to growth in time and we will be well placed to grow and succeed."
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