Review of building products arm after it brings down firm's overall performance
Aggregates and surfacing company Ennstone has reported a 24% increase in turnover in its results for the year ended 31 December 2006.
The company’s revenue increased from £160m in 2005 to £199m in 2006 but its pre-tax profit only saw a slight increase from £13m in 2005 to £13.5m in 2006.
The group’s building products arm has brought down the firm’s overall performance and its market prices are down on last year. These results have spurred the company on to undertake a full review of this section of the business. As a result it is now operating under a simpler management structure.
The UK Aggregates arm of the business has seen a good year with rises in both trading profit and asset value growth but the US Aggregates business had a difficult second half of the year due to the slow US housing market. In order to address the problem the group’s main focus in 2007 for its US arm will be to look at key potential aggregate acquisitions which will strengthen the business.
The firm made a number of acquisitions over the last year across the entire business including contractor Smiths’, Parry’s and May Gurney’s which will now trade as Ennstone Johnston Contracting, Jackson Precast, McKnight Sand and Gravel in Pennsylvania and Roxbury Ready mix Concrete in Virginia.