Ennstone posts annual pre-tax profit of £13m

Ennstone, the aggregates group, has reported “excellent operating profit” both in the UK and US.

Vaughan McLeod, executive chairman, said: “The UK aggregates result is particularly pleasing following the integration of the Johnston business, which was acquired in November 2004.”

Disposals during the year generated £30m. They included the sale of Johnston’s engineering division, which builds road sweepers. And there could be more to come, as Ennstone has also entered into an £11m agreement to sell land at Telford, formerly part of a Johnston site, for residential use.

Ennstone’s turnover (12 months to 31 December 2005) rose strongly to £160m (£110m) and generated a pre-tax profit of £13m. There was a pre-tax loss of £560,000 in 2004 as a result of non-aggregate division issues.

In Scotland, two-thirds of Ennstone’s basic aggregates are already sold to group-owned downstream operations. “That’s a nice balance,” said McLeod.

“In England, we’ll have a figure of 50% for products going out by that route by the end of 2006. That figure could still do with being a little bigger, but the latest planning permissions will get us there.”