Turnover at building materials group Tarmac hit £2bn during its latest financial year as its profit jumped, it has been revealed.
The Solihull-headquartered company’s increased sales in 2023 come after its turnover stood at £1.99bn in 2022.
Newly-filed accounts with Companies House also show its pre-tax profit improved from £125.9m to £168.1m over the same financial year.
However, the average number of people employed by Tarmac in the 12 months fell from 2,782 to 2,621.
As a result, Tarmac incurred redundancy costs of almost £5m in the year.
Despite its improved financial position, the business cut its interim dividend from £230m to £127m.
Tarmac is owned by CRH plc, an international group of diversified building materials businesses whose headquarters is in Dublin.
The company as it is set up today was formed as Lafarge Tarmac in March 2013, by the merger of Anglo American’s Tarmac UK and Lafarge’s operations in the UK. However, it can trace its roots back to 1903.
Tarmac receives £141m boost
A statement signed off by the board said: “The improved performance can be predominantly attributed to the £141m dividends received in the year.
“Underlying market conditions were relatively stable in 2023 albeit with variable levels of growth seen across the industry, with expansion in the infrastructure sector offset by a marked decline in residential.
“Cost inflation continued to be a factor during the period, albeit at lower levels to what has been experienced during 2022.
“The company has mitigated the impacted of this through an optimisation programme delivering benefits through commercial, operational and logistics excellence.”
For the same financial year, CRH plc posted a revenue of $34.9bn (£26.8bn), up seven per cent.
At the time, chief executive Albert Manifold said: “2023 marked another record year of financial delivery for CRH, supported by good underlying demand across our key end-use markets, further pricing progress and the continued benefits of our differentiated, customer-focused strategy.
“Over the last decade our business has evolved from being a supplier of base materials into a fully integrated provider of value-added solutions.”