Shares raced ahead 84p to 837p as a result of the news, which was reported alongside an expected fall in pre-tax profit from £307.6m in 1997 to £264.5m last year. The continued downturn in German construction was largely to blame, with German trading profit down 39% to £76m. Group turnover was up 1.8% to £4.41bn.
RMC would not say if Scancem was in its sights, but did announce that it had £600m-700m available for acquisitions. Offers for the Nordic building materials group – valued at about £1bn – will be considered at a Scancem board meeting on 8 April.
Analysts warmed to the US acquisitions – Jobe Concrete Products of Texas and Nevada-based Reno Sparks – which expanded RMC’s coverage from nine to 12 states. Chief executive Peter Young said: “The USA represents the group’s third-largest activity by country, and these acquisitions are in line with our strategy to expand in this region.” Broker Leslie Kent, of Seymour Pierce, said: “RMC has not overpaid for these acquisitions, and fears about Germany are overdone. Elsewhere in Europe, RMC is doing well.” In the UK, trading profit grew 1% to £87m in a flat construction market, but DIY sales at the Great Mills chain were up 4.5%.
