Breedon Aggregates Limited (“Breedon Aggregates” or the “Company”) AGM Statement
- 06 May 2012
- Company & Industry News
At 2.00pm today, Peter Tom, the Chairman of Breedon Aggregates, will deliver the following statement at the Company's Annual General Meeting.
"Trading in the first quarter of 2012 has been in line with expectations. As anticipated, sales volumes in the first quarter were behind last year which was boosted by the backlog of work caused by the heavy snow in November and December 2010. However, operating margins improved as a result of higher prices and cost-reduction initiatives taken last year.
"The English business benefited from the acquisitions of C&G Concrete and Nottingham Readymix, both of which performed in line with expectations, together with higher activity levels in the house building sector. In Scotland the business continues to be affected by the lack of spending on the trunk road network, but we have secured a number of other contracts which will commence in the second quarter.
"A number of bolt-on acquisitions are under review and the equity placing approved at the AGM will provide additional funds of approximately £15 million before expenses, to enable us to take advantage of such opportunities. We will continue to monitor developments in respect of the proposed UK merger of Lafarge and Tarmac, with the decision of the Competition Commission expected in early May 2012.
"While market conditions remain challenging and the main trading season lies ahead of us, the year has got off to a positive start and we are confident of making further progress in 2012."
"We will give a further update on the group's progress in our interim results announcement on 19 July 2012."