Building materials firm Breedon Aggregates said yesterday it had set its sights on more work in Moray.
The company – which has operations throughout Scotland employing around 400 – is targeting contracts for projects including windfarms and flood-alleviation schemes in the region.
As part of its plans to establish more of a presence in Moray, Breedon has bought Speyside Sand and Gravel Quarries for an undisclosed sum.
Speyside, which has a quarry at Rothes Glen between Elgin and Rothes, is owned by Donald and Elaine Carmichael.
Breedon said it already had a quarry nearby but acquiring Speyside would add a million tonnes of sand and gravel reserves to its existing portfolio.
Breedon chief executive Alan Mackenzie said the Speyside quarry might also yield further reserves.
He said: “We have a quarry and a concrete plant nearby, but there is a lot of activity in the area and good scope for growth.
“Speyside Sand and Gravel Quarries complements our operations very well and it is a natural progression for us. There are quite a lot of infrastructure projects in the area, including windfarms and flood-prevention schemes, and hopefully this will help us bid for work on these developments.”
Breedon already has experience of working in the north and north-east.
Last year, it supplied more than 55,000 tonnes of asphalt and 706,000-plus cubic feet of concrete mix to major road contracts at Fochabers, in Moray, and Crubenmore, on the A9 Perth-Inverness road. The acquisition came on the same day Breedon announced a rise in both operating and pre-tax profits in the first half of the year despite a slight dip in turnover.
In the six months to June 30 revenue fell 2% to £83million, which included £38.9million from its Scottish operations.
Underlying operating profits rose by 35% to £3.9million, while underlying pre-tax profits were £2.2million, up from £768,000 in the same period last year. Breedon said reducing its dependence on public-sector contracts in Scotland and new business in the renewable energy sector had helped boost profit margins. It added it was optimistic for the future prospects of its Scottish business thanks to increased spending by Scottish Water and the Scottish Government’s commitment to major road projects.