Independent aggregates group Breedon has reported a near doubling of its profits and said it expected to make further significant progress this year.
The group, which has its Scottish headquarters at Ethiebeaton in Angus, said steadily improving market conditions throughout 2014 had helped it increase revenues and improve the bottom line.
Turnover was up 20.1% to £269.7 million in the year to December 31 while pre-tax profits soared by 94% to £21.4m.
Underlying earnings before income, taxation, depreciation and amortisation was 36.2% ahead of 2013 at £38.5m, while underlying earning per share increased 46.4% to 1.64p.
The improving picture in the UK construction industry was a major factor in the firm’s improved performance and sales of aggregates increased strongly during the period from 6.1m tonnes in 2013 to 7.7m tonnes.
Asphalt sales increased by 0.1m tonnes to 1.5m tonnes for the year while ready-mixed concrete output increased by 200,000 cubic metres to 0.8m.
Chairman Peter Tom said the firm was upbeat about its prospects.
“We are pleased to report another year of significant progress, with results strongly ahead of 2013,” he said.
“These were driven by steadily improving market conditions, healthy contributions from acquisitions, the benefits of continuing capital investment and solid organic growth in the underlying business.
“As we enter our fifth year since the creation of Breedon Aggregates, the group looks very different to the business we acquired in 2010.
“Sales revenue has nearly doubled, EBITDA has risen almost threefold, the balance sheet is strong and we have a stable, experienced management team in place.”
The company operates 53 quarries, 27 asphalt plants, 60 ready-mixed concrete production facilities and three concrete block sites across the UK and employs more than 1,2000 staff.
The firm said it had seen stronger market conditions south of the border last year compared with Scotland a situation it attributed to the subduing effect of the independence referendum in September and less visibility on Holyrood spending plans compared with Westminster.
However, it still picked up significant supply contracts north of the border during the year including providing 10,000 tonnes of asphalt for the Dundee waterfront regeneration project.
Breedon said the outlook for the business was positive and the fall in the oil price was helping to reduce costs.
The firm did highlight uncertainties surrounding the general election in May as an issue on the horizon but said it expected any effects to be temporary as all of the major political parties seemed to recognise the importance of infrastructure investment in the continued recovery of the UK economy.
“The economic outlook is the most favourable for our industry since the end of the recession,” Mr Tom said.
“Construction output and demand for our products are expected to increase over the next three years and infrastructure in particular is expected to grow strongly in 2015-18 on the back of recently announced sending plans.
“We continue to see many opportunities to grow and improve our business and we are confident that we will make further progress in 2015.”