THE broad geographical spread of activities, which widen year by year, continues to sustain profit growth at CRH, the giant cement and concrete grouping. Annual results from the group this week show pre-tax profits advancing 20.5 per cent to £193 million, the results reflecting earnings benefits from acquisitions and strong growth from its activities in the US and Ireland.
The booming domestic economy, with its high level of construction activity, remains significant in profit terms, accounting for 27.6 per cent of trading profits. The Republic generated £322 million in sales and £57 million in trading profit. With the US market unexpectedly robust, sales in North America doubled to breach the £1 billion mark, with trading profits £33 million higher at £91 million, a growth surge primarily driven by CRH's aggressive programme of acquisitions.
Further profit growth is anticipated this year, with the Republic strong and the British market showing recovery signs. Acquisitions will continue and the group may possibly spend up to £200 million to widen its earnings base. Analysts anticipate current year profits of around £226 million. CRH cements shareholders' loyalty with higher total dividends of 10.2p a share.
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