Bright prospects for RMC

RMC has enjoyed a jump in its share price following the news that it expects to deliver full-year profits at the top end of analyst forecasts.

RMC's trading statement on Saturday said that the performance would be achieved despite a "possible additional UK pension charge of £5m" - a potential charge that the City hadn't had wind of.

In Great Britain the Rugby cement plant has delivered consistent production at its design capacity.

Market conditions have remained broadly unchanged from 2002, said the group's statement. Readymix sales have been lower than last year, primarily reflecting the decline in market share experienced by RMC in the first half of the year.

This slippage was clawed back in the second half with sales closing back to the levels achieved in 2002.

Aggregate sales have fallen slightly in line with market conditions, but margins have improved.

RMC has sold a 19.9% stake in Adelaide Brighton, an Australian company, reducing its shareholding to 34.9%. RMC has said it will sell the remaining balance soon, leaving the company with an anticipated cash pile of £200m in total.

The money will help in RMC's drive to get group debt to less tha £1bn.