Given that Breedon Group Plc (AIM:BREE) operates in end markets more focused on new build construction, especially housing and infrastructure, recent activity is likely to have remained “relatively robust”, said analyst Clyde Lewis at Peel Hunt.
Pressure on fuel and energy costs looks to have stabilised for now, with the group successfully recovering higher inputs through higher selling prices.
“The bigger questions are focused more on volumes, costs and pricing for FY23, but we suspect the group will say little on this for now.”
Over at sausage skin maker Devro PLC (LSE:DVO), recent positive trends are expected to continue churning, with first-half volume growth of 4.5% in edible collagen and revenues up 8.8%, helped by higher pricing.
The company had a solid order book and is successfully mitigating inflationary pressures, though numbers were held back by around a £2mln currency impact.
“Currency has turned into a material tailwind as currency hedges have dropped away. This will also materially help next year's numbers,” said Peel Hunt’s Alexander Paterson.
Significant announcements
Trading updates: Breedon Group PLC, Devro, Vesuvius Plc (LSE:VSVS)
AGMs: Base Resources Ltd, European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTC:EMHLF), K3 Capital Group PLC (AIM:K3C), Quadrise Fuels International PLC (AIM:QFI, OTC:QDRSF), ScS Group PLC (AIM:SCS)