Telford quarry owner Breedon sees profits dip by more than £10m in first half of 2025
Building materials and aggregates group Breedon says it faced a "difficult" first half to 2025 as profits fell.
Breedon, which employs around 100 people at its huge aggregates quarry in Leaton near Telford, revised forecasts downwards for the year despite revenues rising by 7 per cent following the acquisition of US firm Lionmark for £187 million in March.
The group generated revenues of £815.9m in the six months to June 30, up from £764.6m in the same period of 2024.
However pre-tax profits at the firm fell to £34.9 million for the period, down from £46.5m in the previous year, as the company battled "challenging markets" in the UK, plus major project delays in Ireland.
"Breedon has had a challenging first half to the financial year; however I am pleased at how our teams have responded to those challenges by renewing their focus on self-help and customer service while ensuring we maintain our commercial discipline," said chief executive officer Rob Wood.
"We are confident in the medium-term prospects for the group and the very nature of our business, supplying local products within local markets, provides a degree of protection in the current uncertain economic climate.
"We have a strong and committed team, three leading platforms in geographies that have structural long-term growth drivers, significant reserves and resources and a well-invested production capability. We remain optimally positioned to benefit when construction market activity improves."
In an update to markets, the company said the UK Government's "encouraging commitment" to invest at least £725 billion into infrastructure over the next decade, including £39bn into affordable housing, should underpin future demand for materials.
Last year, the firm was given permission to expand its "regionally important" aggregates quarry in Leaton, which currently produces more than 750,000 tonnes of material a year, primarily for the road-building industry.
A section of Leaton Lane to the north of the site has now been permanently closed in order to take in the expansion, which will enable an additional 21.3 megatonnes of reserves to be extracted from the site over 26 years.
