Breedon Share Discussion Threads

[gargoyle2] 12/5/2016 08:17

However, Thomas said an increase in infrastructure spending is unlikely as a result of Chancellor George Osborne's approach to government spending.

Nonetheless, he has added Breedon Aggregates, which supplies products and services to the construction and building sectors to his portfolio in anticipation of an increase in infrastructure spending.

"This infrastructure would not only be a stimulus to growth, but would in due course help productivity. Given our own current Chancellor's attitude to government spending, this may not happen.

"However, our investment thesis should not ignore this and, to this end, we have invested significantly in Breedon Aggregates.

"Executive chairman of Breedon, Peter Tom, is the doyen of the industry and has built a significant portfolio of quarries, asphalt plants and concrete product plants. They are supplying 27,000 tonnes of asphalt to the large new Jaguar Land Rover factory complex at Solihull for example.

"They have just reported annual results for 2015 with revenue up 18% and pre-tax profits up 46%. Of the 130 million tonnes of aggregates mentioned above, they supplied 8.7 million tonnes of that total."

[davebowler] 04/5/2016 09:18

Cantor;
We think Breedon’s opportunity to continue to consolidate the UK aggregates sector after closing the Hope acquisition remains clear, in our view. The share price has rallied recently as the Hope acquisition nears completion and we expect clearance by the CMA soon. However, beyond that, we see the potential for near-term slow down in H1. Comments from peers suggest underlying aggregates volumes could be down in H1 2016 compared with a year ago with delays to infrastructure projects, the switch to Highways England and Brexit distraction. We still like Breedon as an investment, seeing further sizable acquisitions and synergies from Hope as key to its continued share price performance. We reiterate our BUY recommendation and increase our TP to 80p. We see further significant upside to our TP over the medium-term predicated on Breedon successfully making further acquisitions.

[mirandaj] 01/5/2016 16:41

Dagenham Cement works opening later in the year - time lapse - Hope

[elmfield] 14/4/2016 16:07

And a little more into new highs.

[tournesol] 13/4/2016 13:58

significant share purchase by director today.

[tournesol] 12/4/2016 10:53

The fact that Breedon is only being given a week to address the concerns expressed by the CMA combined with the relaxed comments made about this by Breedon suggest to me that it's no big deal and that Breedon is confident of sorting it out.

I remain sanguine about the deal and the short/medium term benefits that will generate.

[redartbmud] 12/4/2016 10:10

Caradog

Thanks.

red

[caradog] 12/4/2016 10:08

Here's the CMA statement:

Hope have 152 RMX plants and the CMA are concerned about loss of competition at 27 sites. I agree that Breedon are likely to have made plans to divest the Hope or Breedon plants at the relevant sites and will be keen to do this in order to avoid an in-depth investigation. They have until April 19th to respond so we will soon know if the CMA are satisfied. Breedon seem confident they can meet the requirements.

[redartbmud] 12/4/2016 08:43

I would be confident that Breedon had already identified those plants that posed a potential problem, and that the plan is already in place to divest them at the earliest opportunity.

just MHO, but things are moving along in the right way towards completion of the takeover.

red

[113mike] 24/3/2016 18:56

Yep..slowly but surely!

[elmfield] 24/3/2016 17:57

A nice way to go I to the Easter break!

[redartbmud] 14/3/2016 07:47

Berenberg analyst Robert Chantry feels that Breedon Aggregates’ (BREE) exceptional growth and lack of direct peers leaves the UK’s largest independent aggregates company in a strong position for the year ahead.

He maintained a ‘buy’ recommendation, with a target price of 80p on the shares, which fell 1.2p to 67.2p on Friday.

‘Breedon reported very strong 2015 numbers on 9 March and provided an encouraging outlook for 2016. We continue to believe Breedon is a differentiated long-term roll-up story in the aggregates sector, currently supported by the cyclical recovery in construction activity,’ he said.

‘Breedon’;s strong 2015 numbers beat consensus estimates by 10% at the earnings per share level. The macro environment remains supportive, albeit at a more modest rate than that seen in 2014 and H1 2015.

‘Furthermore, the outlook for UK aggregate demand looks promising, with the Mineral Products Association forecasting an increase in aggregates demand of 3-5% in 2016.’

[mirandaj] 11/3/2016 16:06

Following some excellent results from Breedon Aggregates:



Peter Tom was talking on Sky - the Ian King Live show on 9th and those with SKY can easily get it back to watch:

"And I'll also be joined live in the studio by Peter Tom, the founder and executive chairman of Breedon Aggregates, Britain's biggest independent supplier of building materials.

In just under six years, he has built it up from a business valued at just £2.2m to one that is today valued at almost £800m, acquiring a string of quarries, concrete and asphalt plants that larger companies have had to discard due to competition reasons.

It now employs more than 1,200 people across England, Wales and Scotland in 53 quarries, 26 asphalt plants and 61 ready-mixed concrete and mortar plants and today reported a 46.4% rise in full year pre-tax profits to £31.3m.

There are few people better placed to talk about the health of the UK construction industry than Mr Tom, a veteran of the building materials industry, who previously built up Aggregate Industries into a £1.8bn company before selling it to Holcim in 2005.

He also knows a thing or two about rugby, having played for 130 times for Leicester Tigers, the Aviva Premiership club he has chaired for the last 20 years."




Also picked up by their local paper as well as many others:



and by

Hope's PR - for example:

[tournesol] 11/3/2016 15:05

If I had £10 million quids worth of shares in BREE and not much else I'd sell a good slice of them to realise the profit, to gat a decent wedge of zero risk cash and to diversify.

I've got no problems with the Directors of Breedon doing just that.

[cisk] 11/3/2016 13:28

I got hopeful last night when i saw the investigate email - only to realise they were sales. But as tourn says, they still retain 2/3 of their holdings so not unduly concerned, I guess with the end of tax year looming that could have some bearing on it.

[tournesol] 11/3/2016 13:23

Yes but look how many shares they have retained. Far more than they've sold. They are still big holders.

[my retirement fund] 11/3/2016 13:13

Oh here we go insiders dumping big style !

[redartbmud] 09/3/2016 16:19

Proactive ST

Thanks. Very useful.

red

[proactivest] 09/3/2016 15:33

Video interview with Breedon Aggregates' Pat Ward



Pat Ward, chief executive of Breedon Aggregates Ltd (LON:BREE) says the results for the year to December 31 were “from a financial perspective, very encouraging”.
The firm, which produces aggregates, asphalt and ready-mixed concrete for builders, reported record results and an encouraging outlook with pre-tax profits rising 46.4% to £31.3mln on an 18.1% revenue increase to £318.5mln.
The company’s plan moving forward, he says is to “continue with regional bolt-ons” and “continue to outperform expectations with these acquisitions – it is a good time for us”.

[redartbmud] 09/3/2016 13:59

elm

I am holding for the ride. My complete faith is placed in Tom. The industry runs through his veins. Over the medium/long term I firmly believe that he will produce a good return.

red