Pre-tax profits at Breedon Aggregates quadrupled last year despite the worst trading conditions in the industry for more than half a century.
The profit figure rose to £5.79 million from £1.385m the previous year, while total group revenues were 2.7% higher at £173.5m.
Executive chairman Peter Tom said it was pleasing that Breedon had made progress despite the general economic backdrop and significant further contraction in the UK construction industry.
“Despite the worst trading conditions I can remember in my 50 years in this industry, Breedon Aggregates continued to grow and prosper in 2012,” Mr Tom said.
“Looking ahead, the challenges in 2013 look like being every bit as tough as they were last year.
“The Construction Products Association is forecasting that construction output will fall by more than 2%, with no meaningful recovery until 2014.
“Against this backdrop it would be easy to let the gloom get the better of us, but we have a strong and finely-tuned business which is well equipped to cope with difficult economic conditions and we remain committed to growing the group in the years ahead.
“When we created Breedon Aggregates in 2010 we did so in the knowledge that we could expect little or no help from the construction market. Our models were predicated on delivering real value, if necessary through self-help alone.”
The company with 28 operational sites across Scotland, and its northern headquarters at Ethiebeaton in Angus sold 4.3m tonnes of aggregate, 1.2m tonnes of asphalt and 481,000 cubic metres of ready-mixed concrete last year.
The firm made two acquisitions during the year Nottingham Readymix in England and Rothes Glen quarry near Inverness but pulled back from an auction of assets of the merging Tarmac and LaFarge, including the Hope cement plant which had been firmly on its radar.
The company supplied several significant Scottish projects during the year including the Fife Intelligent Transport System the key roads infrastructure element of the Forth Replacement Crossing project as well as the Trump golf estate at Menie and works at Peterhead Prison.
It also trialled its recycled rubber asphalt on the A92 on Scotland’s east coast.
Breedon said it was looking to exploit opportunities in the maturing Scottish renewables energy sector and would continue to sell off non-core assets, a strategy that has brought in almost £10m since it first began in September 2010.
Chief executive Simon Vivian said the industry landscape was changing due to the Tarmac LaFarge tie-up but he was confident Breedon would continue to make progress this year.
“While there is no doubt that 2013 will be another tough year, with construction output forecast to decline again and Mineral Products Association product volumes also forecast to be down, we are generally more optimistic than we were this time last year, although the winter conditions in January resulted in a slow start to the year,” he said.
“In Scotland, we believe there will be continuing investment in the renewables sector and related infrastructure.
“The recently approved Aberdeen by-pass and the commitment to dual the A9 from Perth to Inverness will benefit us in the medium term.
“Our associate company Bear Scotland recently secured the north-west maintenance contract from Transport Scotland, which will ensure we continue to benefit from material supplies in that area for the next few years.”