Announcing its unaudited results for the six months ended 30 June 2019, the group said it completed several large publicly-funded Scottish projects which have so far not been replaced, but added that it managed to “maintain our market-leading position” by “winning a healthy proportion of the available work and continuing to provide innovative solutions to our customers”.

“We were particularly pleased to be awarded a major supply and lay contract on the next phase of the A9 Dualling Programme which will commence in the second half of this year,” the firm said.

The reduction of large projects in Scotland had “somewhat offset” generally healthy demand for Breedon’s products in the first quarter, particularly in England, Wales and RoI.

Its performance in the second quarter was adversely impacted by lower volumes in GB due to a flat construction market, ongoing project delays and competitive trading conditions.

Revenue for the half-year at £447.4 million was 18% ahead of 2018 (£378.4m). On a like-for-like basis, revenue was up 2% on 2018.

Underlying EBIT was £49.5m, 18% ahead of 2018 (£42.0m). On a like-for-like basis, underlying EBIT improved by 11%. The group’s underlying EBIT margin was maintained at 11.1%.

Breedon invested almost £20m of capital expenditure in the first six months. Major projects included a new secondary crusher and screen at our Shierglas quarry near Pitlochry and a new primary crusher at Temple quarry near Belfast, together with the commencement of the replacement of the raw mill drive at its Hope cement works. A mobile concrete plant was installed at Loak Farm quarry to service upcoming work on the A9 Dualling contract, with a mobile asphalt plant to follow on the site later this year.

A multi-million-pound investment in our quarry at Holme Hall in South Yorkshire secured substantial additional minerals there and further extensions were gained at Boyne Bay in Aberdeenshire and Norton Bottoms in Lincolnshire.

Group chief executive Pat Ward said the results demonstrate the benefits Breedon gains from the broad geographical spread of its operations.

He added: “We are pleased once again to be reporting an improved performance by the group in the first half.  The period began well, with benign weather in the first quarter and generally healthy demand for our products, particularly in England, Wales and the Republic of Ireland, somewhat offset by fewer large projects in Scotland.  Our performance in the second quarter was adversely impacted by lower volumes in Great Britain due to a flat construction market, ongoing project delays and competitive trading conditions. However, demand in Ireland remained robust.

“Despite the near term uncertainties, July has started well and enquiry levels in Great Britain are encouraging, giving us confidence in a stronger second half.  We have a healthy acquisition pipeline, the medium-term outlook for our markets is positive and the Board remains confident of meeting full-year expectations.”