Breedon Group, the construction-materials company, announced on Wednesday that its pretax profit for the first half of the year experienced a slight decline due to increased costs and expenses. However, the company remains optimistic about its full-year expectations.
According to Breedon, pretax profit dropped to £56.5 million ($72.9 million) compared to £59.5 million in the previous year. This decline can largely be attributed to higher cost-of-sales, distribution, and administrative expenses.
Nevertheless, the company’s revenue increased by 11% to reach £742.7 million. This growth was primarily driven by higher pricing, which more than made up for lower volumes.
Breedon Group emphasized that it is well-positioned for the second half of the year, as its end-markets have shown resilience. However, the company acknowledges that its visibility beyond 2023 is limited due to the uncertain outlook. As a result, Breedon has placed greater emphasis on operational resilience and agility.
Chief Executive Rob Wood stated, “By challenging our procedures and practices, we can ensure that we are in the strongest possible position when our end-markets experience growth.”
Breedon confirmed that it is currently performing in line with management’s expectations for the full year, although it did not provide a specific figure.
The company’s board declared an interim dividend of 4.0 pence per share, representing an increase from the previous year’s dividend of 3.5 pence.
At 0815 GMT, Breedon’s shares were trading at 362.5 pence, experiencing a 2.7% increase of 9.5 pence.