Tarmac posts £80m half-year profit despite difficult market

Tarmac has reported an operating profit of £80m in the six months to July, in line with business expectations, but well down on the figure of £96m in the same period last year.

Chief executive Robbie Robertson said: "It has been a busy period. We have carried out our restructuring and we progressed the divestment of some underperforming assets in the UK.

"The market conditions for asphalt and products sold into housebuilding remain difficult. High energy costs continue to affect our profitability."

Robertson will retire at the end of 2006. His successor, David Weston, takes up his post on 1 October, giving a two-month overlap to ensure a smooth handover.

During the first six months of 2006, Tarmac sold its UK-based TopPave business, while in India, the sale of its concrete business was completed. Sales of non-core assets in both Hong Kong and Germany are close to completion.

Tarmac has announced plans to spend £20m over the next five years to strengthen its national mortar business, including the creation of a new dry silo mortar plant in Colchester.

A spokeswoman for Tarmac said no figures were available for turnover. "We don't report turnover figures for Tarmac," she said.

[Contract Journal, 9 August 2006, p.2]