Breedon builds on bumper year with major acquisition in US
Breedon's chief executive said the "long-term structural deficits" in British housing and construction boded well for the business
Construction and infrastructure materials supplier Breedon has reported record revenue and announced a blockbuster acquisition that expands the firm’s US footprint.
The supplier today said that revenue came in at an all-time high of £1.48bn for 2023, up seven per cent from £1.39bn the year prior.
Profit before tax dipped slightly to £134.4m from £135.8m the year prior while earnings before interest and taxes (EBIT) came in two per cent lower than 2022 at £145m.
The company increased its full-year dividend per share to 13.5p from 10.5p.
The company has also officially entered the US market through the acquisition of American concrete maker BMC Enterprises for $300m (£238m), which it said leaves them “well-placed to grow in the highly-fragmented US construction market.”
The deal, which is expected to close by Thursday, involves $285m (£224m) payable in cash on completion using an existing credit facility and then $15m (£11.7m) payable in Breedon shares.
Looking ahead, the company believes it is well-positioned to “deliver materials to markets that benefit from significant foreign direct investment and rapid population growth while suffering structural infrastructure and housing deficits.”
“The record results we delivered in 2023 are a real accomplishment and something I am extremely proud of,” said Breedon chief executive officer Rob Wood.
“Breedon has proved itself to be dependable and consistent, regardless of the short-term headwinds and the markets we serve, particularly infrastructure and housing, are supported by long-term structural deficits with spending ambitions that are upheld by cross-party government support in the UK and Ireland.
“We made further progress on our strategic growth priorities in 2023, our vertical model is maturing and provides us with a strong platform for our future growth.”
