Breedon Group PLC on Friday hailed trading conditions in the second half of the year and said it has managed to ‘fully recover’ accelerating input costs, thanks to price hikes.

The Derby, England-based construction materials company said revenue in the four months to October 31 was up 16% year-on-year.

For the 10 months to the end of October, revenue was 14% higher at £1.19 billion, compared to £1.05 billion in the same period last year.

‘Trading conditions during the second half remained supportive, enabling the group to fully recover rising input costs through robust pricing and disciplined cost management,’ Breedon said.

The company said in Great Britain, it advanced the business strategically and delivered a strong operational performance. In Ireland, Breedon said it is pleased to be awarded a number of framework contracts.

However, it said volumes are behind the ‘exceptional levels recorded during the post-Covid recovery 2021 levels’, but ahead of 2019 on a like-for-like basis.

Looking ahead, Breedon said it is on track for record earnings this year. It said it has noticed a ‘softening’ in construction output so far in the second half of 2022, but said its ‘end-markets remain resilient’.

It added that results for the year will be in line with expectations.

In July, Breedon had reported a pretax profit of £59.5 million in the first half of 2022, up 29% versus £46.2 million the year before. This was on revenue growth of 12% to £671.1 million from £600.9 million.

Shares were up 2.9% at 58.85 pence each on Friday morning in London.

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