BUILDINGS materials group, Readymix, is showing an improved performance this year, with profits in the first quarter running ahead of budget, according to its chairman, Mr Martin Rafferty.

Speaking to shareholders at the company's annual general meeting in Dublin yesterday, Mr Rafferty said prospects for the group in 1996 were "positive".

Its recent acquisition, RMSCatherwood, was also trading strongly, he said, with operating profits in Northern Ireland and the Isle of Man, up on the previous year.

Its performance in the first three months of the year, he said, "reinforced" his view that the £22.4 million acquisition was in the best interests of shareholders.

Voting at an extraordinary general meeting held after the annual meeting, shareholders overwhelmingly approved the RMS Catherwood acquisition, which was funded by the placing of 13 million new Readymix shares. Mr Rafferty said the group had not received a single proxy voting against the acquisition.

Managing director, Mr John McNerney, said the share placing had effectively reduced the British RMC group's holding in Readymix, bringing its stake down from 74 per cent to 62 per cent of the company.

Some six million new shares were taken up by institutional investors, he added. The RMC group took up a further three million, with Readymix shareholders subscribing for the remaining four million shares, Mr McNerney said.

The company now intends to focus on consolidating the news Catherwood business within the Readymix group, he said.