'Difficult' first half hits profits at Breedon, shares slid
Shares in Breedon Group Plc slid on Wednesday, after the construction materials specialist warned on profits following a "challenging" first half.
Revenues in the six months to 30 June rose 7%, to £815.9m, boosted by the acquisition earlier this year of US firm Lionmark. However, on a like-for-like basis they fell 3%.
The volume and mix was down 4%, which Breedon attributed to challenging markets in Great Britain, major project delays in Ireland and adverse weather in the US.
Underlying earnings before interest, tax, depreciation and amortisation eased 3% to £115m, while pre-tax profits tumbled 25% at £34.9m.
As a result, the FTSE 250 firm - which owns a number of quarries alongside ready-mix concrete and asphalt plants - warned: "Given the difficult first half and the macroeconomic headwinds, we now expect our result for the full-year will be at the low end of the current range of market expectations."
Consensus is currently for full-year EBITDA in the range of £291.4m to £311.5m.
As at 0930 BST, the stock was down 8% at 355.6p.
Rob Wood, chief executive, acknowledged that Breedon had a "challenging" first half.
But he continued: "We are confident in the medium-term prospects for the group, and the very nature of our business, supplying local productions within local markets, provides a degree of protection in the current uncertain economic climate.
"We remain optimally positioned to benefit when construction market activity improves."
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