Building materials giant, Tarmac, saw revenues surpass £2 billion and profits increase last year despite rampant cost inflation and volatile growth across the industry.
Turnover for the year ended 31 December 2023 was more than £2 billion, up from the £1.9 billion achieved in the previous financial period, generating a pre-tax profit of £168.1 million (FY2022: £125.9 million).
The Birmingham-headquartered business reported an operating profit of £38.9 million, compared to £52 million recorded the year prior, while EBITDA was £94.3 million (FY2022: £114.4 million).
“The improved performance can be predominantly attributed to the £141 million dividends received in the year,” said the business.
“Underlying market conditions were relatively stable in 2023, albeit with variable levels of growth seen across the industry, with expansion in the infrastructure sector offset by a marked decline in residential.”
Tarmac said it also ‘optimised’ its commercial, operational and logistics functions to mitigate the effects of cost inflation in the year.
At the year end, Tarmac’s balance sheet had net assets and total equity of £698.6 million, compared to £674 million recorded the year before, with cash reserves of £20.4 million (FY2022: £17.1 million).
Tarmac posted profit for the year of £150.6 million, ahead of £116.6 million recorded the year prior.
The company paid an interim dividend of £127 million in the year, (FY2022: £230 million), however the board did not recommend payment of a final dividend (FY2022: £Nil).
Was this interesting? Try: Another year of record growth for OCU Group
If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.