CONCRETE and cement business RMC has hinted it may offload the German business which dragged down its annual figures earlier this month.

Earnings in Germany slumped from £49.1m to just £4.6m and offset a "powerful" performance from the group's UK operation.

Reacting to speculation over the future of the business, RMC confirmed it was reviewing options for several businesses, including in Germany.

The announcement, which prompted a seven per cent lift in RMC's share price, follows a pledge made during the company's results briefing to push borrowings below £1bn by the end of next year.

The group told City analysts that further disposals would form an integral part of that debt reduction programme.

RMC, which is cutting costs in Germany under a new management team, said: "The board confirms that it is carrying out a strategic review of its options regarding certain of its businesses, including those in Germany.

"This review is at a preliminary stage and, as a result, no decisions have been reached as to which further disposals may be made."

Group pre-tax profits fell by 18 per cent to £170.7m last year, although underlying earnings in the UK division gained 92 per cent to £98.5m.

RMC, based in Egham, Surrey, employs 35,000 people. It has already warned conditions in Germany are likely to remain depressed after seeing the market for construction materials worsen significantly this year.

The company also has significant operations in the US and elsewhere in Europe