RMC profits rise despite UK troubles

CONCRETE maker RMC announced a rise in profits thanks to its US operations, which outweighed an earnings plunge in the UK.

Underlying pretax profits rose to £62.8m in the six months to June 30 from £50.7m a year earlier. After exceptional items, however, pretax profit fell to £46m from £98.5m and earnings per share slipped to 8p from 21.8p a year earlier.

The construction materials group said its UK activities, which saw underlying pretax profits halve, were hit by a number of stoppages at its Rugby cement works and weaker market conditions for asphalt and ready mixed concrete.

But in the US, the group said: 'We continued to benefit from the high level of new housing construction, the recovery in the commercial sector and the general strengthening of the economy.'

'The results announced today show that, with the exception of Great Britain, we are sustaining the earnings momentum across the business during an important time of change,' said chairman John Parker.

'In terms of the current year, whilst the rate of profit improvement will slow in some countries, we are expecting to deliver a satisfactory outcome for the full year.'

More specifically, the group said that although trading conditions in the UK are expected to remain difficult, the group's performance for the year as a whole is expected to be in line with market expectations.

The interim dividend is unchanged at 9.4 pence a share.