Breedon Group, the construction materials group, has hailed another record year.
In audited annual results for the year ended 31 December 2022, revenue at the business increased 13% to almost £1.4bn, while pre-tax profits were up 19% to £135.8m.
The news came as Breedon revealed plans to move to the Main Market of the London Stock Exchange, which it says is “a reflection of [its] scale, maturity and growth ambitions.”
The directors believe this would enhance Breedon’s corporate profile and recognition, as well as extending the opportunity to invest in the group to index tracker funds and a broader group of international institutional shareholders.
Admission is expected to occur during the second quarter of this year.
Rob Wood, Chief Executive Officer, said: “2022 was another record year. Each division progressed and we made meaningful headway on our growth strategy, expanding organically, acquiring strategically important assets, and moving our sustainability agenda forward.
“We grew sustainably through replenishing and optimising our mineral assets, investing in our colleague’s safety and wellbeing, and reducing our carbon footprint while maintaining a secure financial position. We have a mineral pipeline in excess of 100 million tonnes, we achieved the highest substitution of fossil fuels at our cement plants in our history, and we invested for growth while still reducing our leverage.
“In recent years our local and entrepreneurial operating model has been tried and tested, keeping our people safe while growing high-quality earnings, and maintaining a strong balance sheet. Despite the uncertain economic and geopolitical landscape, 2023 has begun positively and we are in a strong position. We will continue to supply essential materials to growing end-markets, and we remain confident in our ability to deliver.”
On the move to the Main Market of the London Stock Exchange, Amit Bhatia, non-executive chairman of Breedon, said: “Being a member of AIM has served us well. For over a decade the AIM market provided us with access to diverse and engaged investors, within a supportive community that understands the needs of entrepreneurial businesses such as Breedon and we thank them wholeheartedly for their support.
“As an established business, with a track record for growth and value creation, we believe the Main Market now offers the appropriate listing for a company of our scale and heritage and, subject to the required approvals, look forward to our future as a member of the Official List.”
