Breedon Group reassures stakeholders on medium-term outlook despite ‘mothballing sites’ and lower full-year profit forecast

For the six months ending 30 June 2025, Breedon reported a 24.9 per cent drop in pre-tax profit to £34.9 million (HY1 2024: £46.5 million) and a 15.8 per cent decline in operating profit to £46.6 million (HY1 2024: £55.4 million).

However, revenue rose 6.7 per cent to £815.9 million (HY1 2024: £764.6 million), driven by the acquisition of US-based construction materials and surfacing solutions business Lionmark.

The Leicestershire-based firm explored “mothballing sites” and “procurement initiatives” during the period to improve efficiency.

Like-for-like revenue fell three per cent, impacted by delays in major projects in Ireland, including the paused A5 upgrade project due to a High Court ruling, adverse weather in the US, and challenging markets in Great Britain.

Its newly established country-based management structure performance showed:

• Great Britain: 2.3 per cent decrease to £480.7 million (HY1 2024: £492.4 million)

• Ireland: 7.3 per cent decrease to £103 million (HY1 2024: £111.2 million)

• US: 140 per cent increase to £127.2 million (HY1 2024: £53 million)

Net debt increased to £648 million (HY1 2024: £472.3 million), reflecting the Lionmark acquisition and seasonal working capital cycles.

Cash stood at £20.8 million (HY1 2024: £30.3 million) with undrawn banking facilities of more than £105 million.

Breedon advised it expects its full-year results to fall at the “low end” of market expectations.

Shares in the company dropped 9.4 per cent to 351.40 pence in London this morning (23 July) following the announcement.

Basic earnings per share decreased 20 per cent to eight pence from 10 pence.

Despite this, Breedon remains confident in its medium-term prospects, bolstered by strong order backlogs and government commitments in housing and infrastructure.

The interim dividend was increased by 5.6 per cent to 4.75 pence, costing £17 million (HY1 2024: £16 million), reflecting the company’s confidence in its future.

Its chief executive officer, Rob Wood, added: “We are confident in the medium-term prospects for the Group and the very nature of our business, supplying local products within local markets, provides a degree of protection in the current uncertain economic climate.

“We have a strong and committed team, three leading platforms in geographies that have structural long-term growth drivers, significant reserves and resources and a well invested production capability. We remain optimally positioned to benefit when construction market activity improves.”

Was this interesting? Try: Mitie’s momentum continues, supported by record £29bn pipeline of prospects and acquisition activity as it welcomes a new chairman

If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk