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RMC profits drop £18.6m despite steady turnover

FINANCE

UK PROFITS at RMC collapsed in the first half of this year after the materials behemoth was bushwhacked by problems at its Rugby cement plant and lower demand for asphalt.

The firm is pushing on with a redundancy programme and 500 staff have left but UK profits fell £18.6 million to £22.4 million despite turnover remaining almost static at £523.5 million.

Chief executive David Munro said: 'We're taking some costs out of the business and that should bring up margins.The last of the people will be going at the end of this year.'

Production problems, including stoppages this spring at Rugby, knocked £6 million off RMC's UK profits.

Concrete volumes were down compared with the firm's peers and demand for asphalt also fell 10 per cent but RMC has driven debts down to £894 million from £1.2 billion a year ago and Mr Munro is looking to invest money rather than cut costs.