Aggregate Industries has released its "Annual Report and Financial Statements for the year ended 31 December 2019"; i.e. for the period before Covid.
The company reported sales of £1330m (£1297m) and pre-tax profits of £87.5m (£68.5m). Profits are still short of the £105m reported for 2016. A pre-tax margin of 6.6% compares unfavourably with the 10.2% recorded by competitor Breedon for the same calendar year. Clearly, Aggregate Industries is still not firing on all cylinders – despite staff numbers falling again.
Unsurprisingly, the Annual Report paints a subdued outlook:
It is anticipated that the UK Construction Output will reduce in 2020 as a result of the global COVID-19 pandemic. As a result, it is envisaged that demand levels for our products and services will be lower than 2019.
The company "implemented a number of cost reduction initiatives" in 2020:
The initiatives are aimed at reducing the input costs of the business in line with reduced activity to remain profitable.
On "Environment and Sustainability", Aggregate Industries says:
The Directors regularly discuss the Company’s impact on the environment and the sustainability of the Company’s operations.
Really? Given the company’s plans for Straitgate Farm – with its 2.5 million mile HGV extravaganza – it clearly hasn’t made any difference.
On "Purpose and Leadership", Aggregate Industries claims it’s "reinventing how the world builds". Crikey. Who makes this stuff up?
Central to our strategy is the idea that the construction sector plays an important role in building a more sustainable future. We believe in building a world that works for people and the planet. A world that keeps people safe, connected and thriving. With our customers and partners we are advancing society and uplifting communities. But today we want to play an even bigger role. That’s why we are reinventing how the world builds on our way to becoming a net zero company.
Again, from the perspective of the company’s unsustainable plans for Straitgate, that also looks unlikely.
