Tarmac results reflect weaknesses in market
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• Cuts in UK road-building and maintenance programmes saw materials volumes significantly down at construction firm Tarmac, Reporting full year pre-tax profits of £10.5m after exceptional restructuring costs of 1:,65m, group chief executive Neville Sims said there was continuing weakness in the main UK markets.
The reductions were only partially offset by stronger commercial and industrial building activity, he said.
Group turnover for the year to 31 December 1996 stood at L2.7 billion and operating profit at 1117.5m.
During the year Tarmac completed a major rationalisation programme including the integration of the Wimpey minerals and construction business, which it swapped for Wimpey's private sector housing business.
Despite the weakness of the UK market, Sims said the UK underlying economy strengthened with improving demand for building products which indicated the construction industry was slowly recovering.