Firm says October trading ahead of 2019 equivalent

Materials firm Breedon said its 2020 operating profit will be better than previously expected.

In a trading update, the firm said it was predicting the figure to be at least £70m this year – up from the current market expectation of £67m.

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Demand for Breedon product has risen sharply since the lockdown

It said that improving business conditions had continued into the final quarter of this year with revenue in September and October ahead of the same period last year on a like-for-like basis.

Revenue in the first 10 months of the year was £750m compared to £800m for the same period last time.

It added that net debt would be below the £400m mark by the year end once the sale of 14 sites to Scottish firm Tillicoultry Quarries for just over £12m – required as part of its deal to buy 100 sites from Cemex – completes.

The firm will announce its 2020 results on 10 March next year.