- Construction materials group Breedon reported Wednesday a rise in annual profits as revenue jumped by nearly a third, underpinned by acquisitions.

For the year ended 31 December 2018, profit before tax rose 12% to £79.9m and revenue increased 32% to £862.7m.

The results were underpinned by contributions from recent acquisitions, with 'the transformative acquisition of Lagan, taking us into new markets with significant growth potential,' the company said.

Despite the upbeat results, the company said it fully expected 2019 to 'continue to be challenging in GB,' but added that its 'broad spread of operations, excellent management team and exposure to sectors like infrastructure and housing with above-average growth projections,' give it confidence that it would continue to make solid progress in 2019.

While the asset swap with Tarmac streamlined its concrete network, strengthening its asset base and improved the quality of earnings, the company added.

'We outperformed the GB market in sales volumes of all our key products, grew our revenues and Underlying EBIT, and once again generated strong cash flow, enabling us to pay down a material proportion of our post-Lagan debt by the year-end,' said Peter Tom CBE, Executive Chairman.

'Our company is in excellent shape and well placed to benefit from the medium-term growth predicted for our markets. We have a strong asset base, a highly cash-generative business and a talented management team, all of which give us a significant competitive advantage whatever the market conditions.'

At 9:57am: [LON:BREE] Breedon Group share price was +1.5p at 69.2p

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