Readymix Plc - Interim Management Results
For the half year ended 30 June 2011

29^th August, 2011

Today we announce the performance for the half year ended 30 June 2011 and the outlook for the remainder of the year.

Review

Trading conditions have deteriorated even further during 2011. The demand for Group products continues to decline with revenues from operations down 24% versus the same period last year.

This further slowdown in demand is reflected in the Group's financial results for the first half of this year, resulting in a reported pre-tax loss of ?20.4 million including exceptional items. On the evidence of impairment indicators the Board conducted a mid-year impairment review of the carrying value of its property, plant and equipment. Recent plant closures, commitments to future plant closures, valuations received related to the provision of security for the closure of the Republic of Ireland Defined Benefit Pension Schemes, and the further general deterioration in aggregates markets, were key factors in this decision. These impairment indicators resulted in an impairment charge of ?12.7m at 30 June 2011.

Despite achieving further reductions in operating costs and efficiency savings, the Group is reporting operating losses before exceptional items of ?7.0 million for the first half of the year. Total exceptional items of ?12.6 million include rationalisation costs of ?2.8 million, impairment charges of ?12.7 million and a net gain of ?2.9 million related to the closure of the Republic of Ireland Defined Benefit Pension schemes.

Developments

The priorities for management continue to be further reductions in costs with no major capital projects being undertaken until trading conditions improve. The Group continues to evaluate the possible disposal of certain business assets.

The Group has recently renegotiated the current cash facility with CFC, a subsidiary of Cemex SAB de CV. CFC have agreed to extend the existing credit line for an additional three years, from September 2011 to September 2014 and to increase the facility from ?25m to ?35m. Based on this, the Board believes that the Group, as a going concern, has sufficient cash and cash equivalents to meet its liquidity requirements for the foreseeable future.

The Group concluded the winding up of three defined benefit pension schemes in the first half of 2011. This significantly reduced the uncertainty surrounding retirement benefit obligations relating to the Republic of Ireland from the Group balance sheet.

Outlook

As a result of the weakness in the housing and commercial sectors and the uncertain timing of any new infrastructure projects, Readymix plc expects the very demanding trading conditions to continue for the remainder of 2011 and into 2012.

Dividend

In view of the adverse outlook for revenues and in order to conserve cash resources your Directors' are not recommending a resumption of dividend payment.

Principal risks and uncertainties

Under the Transparency (Directive 2004/109/EC) Regulations 2007, the Group is required to give a description of the principal risks and uncertainties it faces for the remaining six months of 2011.

Risk management is an integral part of the Group's business process. A detailed risk register is maintained by the Group and plans to address the identified risks are regularly updated, reviewed and approved by the Board.

The risks and uncertainties which are currently judged to have the greatest impact on the Group's performance for the remaining six months of the year are set out below:

• The ongoing uncertainty regarding the depth and longevity of the current recession, and its particular impact on the construction sector, remains a significant risk for the business;
• The reduced availability of financing from banks and other providers of finance;
• The Group faces strong price competition in markets with reduced demand for volume, if it fails to compete successfully, market share may decline;
• The Group faces increased debtor default risk arising from the slowdown in the economy with key customers exiting the sector because of market conditions;
• The Group may require access to capital in the future for longer term sustainability. Lack of availability of sufficient capital resources may adversely affect the Group;
• Changes in government regulations, particularly in the environmental sector, may adversely affect the Group;
• Group IT facilities could be subject to hacking or viruses, which could result in downtime, which in turn could lead to declines in sales and profitability for a time;
• Movements in foreign currency exchange rates and higher interest rates may adversely affect the Group;
• The success of the Group is built upon a strong effective management team committed to achieving a superior performance in each of our divisions. The loss of key personnel could for a time have a significant impact on business performance.

Related party transactions

The Group's Annual Report for the year ended 31 December 2010 discloses related party transactions. In the opinion of the Directors, there have been no related party transactions, or changes therein since 31 December 2010, that have materially affected the Group's financial position or performance in the six months ended 30 June 2011. Since the period end, the facility with CFC has been increased to ?35m and extended to 2014.

Forward-looking statements

This report contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Readymix plc to be materially different from those expressed or implied in this report, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which Readymix plc does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in raw material and energy prices, weather conditions, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Readymix plc assumes no obligation to update or correct the information contained in this report.

A. Auer
Non-Executive Chairman

Readymix plc

Statement of the Directors' in respect of the half-yearly report

We confirm our responsibility for the half yearly financial statements and that to the best of our knowledge:

the condensed set of financial statements comprising the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and the related notes have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

the interim management report includes a fair review of the information required by:

1. Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulation 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
2. Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulation 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so

On behalf of the Board:

A. Auer
Non-Executive Chairman

R. Gonzalez
Managing Director