Breedon continues to trade well, with product volumes in the first 10 months ahead of the comparable period in both England and Scotland.
Underlying trading conditions in England remain strong. In Scotland, road spending remains subdued but several large contracts are about to commence which will run through next year and into 2017.
For the 10 months to October 31st 2015, Group sales volumes of aggregates increased by 19%, asphalt by 23% and concrete by 20% compared to last year.
Unaudited Group revenue for the same 10 months increased by 22% to approximately £274 million. Lower hydrocarbon costs have continued to benefit performance in the second half of the year but forward market pricing is now starting to reflect these lower costs.
Assuming that weather conditions remain favourable for the remainder of the year, the Group’s underlying EBITDA for the full year is expected to be at the top end of current market expectations1.
The outlook remains positive, with a number of projects already secured for next year. We are confident of making further progress in 2016 and, assuming that completion of our acquisition of Hope Construction Materials takes place as expected in the second quarter of next year, our progress is likely to be significantly enhanced.