Financial overview
In 2007, Tarmac’s operating profit climbed by 38% (excluding benefits from exchange rate movements) to $474 million. Although the year was characterised by high cost pressures and volatile energy prices in a tight and highly competitive market, disciplined margin management, procurement initiatives and healthy demand from certain sectors had a major positive bearing on results. In the UK, operating profits grew by 41% with sales growing ahead of the market. At Tarmac International, operating profits were 32% higher, benefiting from milder weather and buoyant markets in France, Poland and the Czech Republic.
| $ million (unless otherwise stated) | 2007 | 2006 |
|---|---|---|
| Operating profit | 474 | 317 |
| EBITDA | 732 | 539 |
| Net operating assets | 4,509 | 4,185 |
| Capital expenditure | 274 | 279 |
| Share of Group operating profit | 5% | 4% |
| Share of Group net operating assets | 17% | 20% |
In 2007, Copebrás and Yang Quarry were reclassified from Industrial Minerals to Base Metals and Coal respectively, to align with internal management reporting. As such, the comparative data has been reclassified.