Breedon Share Discussion Threads

[mw8156] 23/1/2018 09:30

wonder whether they may suffer a bit on the Aberdeen West Bypass contract on which they were working with Balfour, Galliford and Carillion?

[alter ego] 23/1/2018 09:12

compnews1, looks like The Share Centre provide a "stock of the week" idea for investors so they will have "analysts" generating these tips to order. The content of the one on BREE contains nothing remarkable and is very basic background on the company. No figures are given so it's up to readers to do more research to decide if they think the stock is good value or not. In other words, there's very little in the piece to inform you beyond the suggestion that BREE may be worth looking into further.

I've held BREE for 7 years and regard it as a pretty safe investment since the share price is underpinned by large physical reserves in the quarries they own. They have been acquiring smaller companies that bring more of these assets and local customers and are a well run outfit with highly experienced management. I don't expect fireworks but infrastructure spending fuels demand for BREE's products and should mean steady progress on earnings. I added recently feeling that the share price decline had more to do with (unfounded IMO) worries about the knock on effect of Carillion than actual trading.

[compnews1] 23/1/2018 08:46

Graham Spooner, investment research analyst at The Share Centre picks AIM listed company Breedon. Does anyone know how sound his advice, he is FSA-approved investment adviser? See link below

hxxp://www.yourmoney.com/investing/stock-week-breedon-aggregates-2/

[alter ego] 18/1/2018 12:17

"it does not qualify towards an IHT asset on death"

My understanding is that this stock would qualify for BPR (business property relief) because it is a genuine trading company (not one that is specifically excluded from BPR because it is an investment vehicle) and it is traded on AIM.

Whether or not it is in an ISA does not matter since all assets are counted for IHT. Being eligible for BPR would mean it is excluded from the total value of your assets.

This is my opinion not advice. Only HMRC can say for certain if BPR is given and they only do so after death so you really have to base your decisions on trying to understand the rules of BPR.

[garycook] 18/1/2018 12:10

His BREE,if owned in a Share Portfolio,and the owner of the BREE Shares dies.Does BREE,because it is an AIM Share, it does not qualify towards an IHT asset on death.Can anyone confirm this ?

[philanderer] 18/1/2018 10:01

20k @ 81.84p :-)

[alter ego] 17/1/2018 12:24

Hopefully, the jitters have stabilised judging by the steady, if modest, share price gains. With concern about the Carillion impact on small suppliers I wonder if ultimately this may throw up opportunities for BREE either to acquire or take up the slack caused by distressed companies.
I guess we won't know for some time but having ultimate control of the resources (quarries etc) will be crucial for meeting the ongoing needs of infrastructure and construction work.

[philanderer] 16/1/2018 17:30

Thanks M :-)

3 million+ traded today

[mirandaj] 16/1/2018 12:57

Thank you for confirmation konkel.

Another v. short Sirius Minerals video but good to see Breedon Aggregate lorries in attendance there too as well as the cement lorries.


Woodsmith Mine Timelapse 2017

[alter ego] 16/1/2018 12:13

thank you konkel, good news

[philanderer] 16/1/2018 11:48

konkel , excellent , many thanks.


So far...

Further listed companies came out to reveal how they would be affected by the collapse of the UK's second largest construction group, including the infrastructure investment arm of fellow builder John Laing, sub-contractor Van Elle and lighting and sprinklers specialist Premier Technical, following announcements from Speedy Hire, Balfour Beatty and Galliford Try a day earlier.

[konkel] 16/1/2018 11:43

From Numis:

BREEDON (ADD, 96p) CARILLION RESPONSE. The Aberdeen Road contract (APWR) is a large contract for Breedon Northern, but Breedon has credit insurance on supplying aggregate to the project and also makes the point that given the expectation that BBY and GFRD will take up CLLNs share (as the JV retains liability for the project). As such, there is no direct impact and given the project will finish this year anyway, our BREE numbers already assume lower profits from their associate relating to this project and we see no need to change this. Ex-APWR, BREE has very limited exposure to CLLN directly, but makes the point that it carries credit insurance as clearly there will be risks to the subcontractors in the supply chain. An indirect impact of the news today is that it seems likely that credit insurance premiums will rise as a result of the news on CLLN today in our view.

[philanderer] 16/1/2018 10:50

I think BREE better come out with an RNS

Blocks getting dumped now @ 79p , 1 million shares traded today.

...that's £60m off the market cap since yesterday morning under this CLLN cloud.

edit:

25,000 @ 78p sold :-S

[philanderer] 16/1/2018 10:07

Easy to inform shareholders what invoices have been submitted and not paid and what work in progress has not been invoiced.

As red has said VANL updated this morning ... £1.5m in unpaid invoices and work carried out and not invoiced . Shareprice tw@tted by nearly 10%


edit:

and yet another 50k dumped @ 80p

[my retirement fund] 16/1/2018 09:45

That recent quarry transaction will be tied up in legal stuff for what could turn out to be a very long time whilst the insolvency practitioners get their teeth into Carrilions affairs. Thats going to be costly regardless of what other unpaid invoices there are for supply.

[philanderer] 16/1/2018 09:39

Shareprice looks to be pointing to some negative financial repercussion from the CLLN fallout.

Worry is that they're not going to clarify this until results on march 7th.


edit:

another 50k just dumped @ 80.4p

[redartbmud] 16/1/2018 09:36

Vanl has also quantified the unpaid liability.

[felix99] 16/1/2018 09:28

or it means they are not that efficient at working out what their exposure is to make the RNS yet! We shall see. I think the latter as they will surely make some statement good or bad to clear the uncertainty

[philanderer] 15/1/2018 20:55

GFRD, BBY and SDY all issued an RNS today re their association with CLLN , so with nothing forthcoming from BREE they're hopefully not financially implicated.

[philanderer] 15/1/2018 18:03

BBY , GFRD abd SDY the only other CLLN related falls I can see today.... GFRD and BBY involved in that Aberdeen Western Peripheral Route contract where BREE has work


Market report:

Balfour Beatty was down 2.7% at 299.3p after the infrastructure group said it would take a hit of up to £45 million this year due to Carillion's collapse.

The group is a joint venture partner with Carillion on three projects: the Aberdeen Western Peripheral Route, the A14 in Cambridgeshire and the M60 junction 8 to junction 20 scheme.

'The cash impact to Balfour Beatty is likely to be an outflow in the range £35 million to £45 million in 2018,' the company said in a statement to the market.

Shares in Galliford Try meanwhile dropped 2.7% at £12.43. The house builder and construction group is the third joint venture partner on the Aberdeen Western Peripheral Route.

'The terms of the contract are such that the remaining joint venture members, Balfour Beatty and Galliford Try, are obliged to complete the contract,' it said.

'Our current estimate of the additional cash contribution outstanding from Carillion to complete the project is £60 million to £80 million, of which any shortfall will be funded equally between the joint venture members.

Shares in Speedy Hire the tool hire group which numbered Carillion as among its biggest customers, were also down heavily, falling 6.3% to 56.4p.

But Liberum, the company's broker, said the sell-off was 'overdone'.

'As one of Speedy's largest clients, the announcement by Carillion that it has entered into compulsory liquidation is a short-term headwind for the shares,' said analyst Rahim Karim.

[peterbill] 15/1/2018 14:25

5 year graph ...

[philanderer] 15/1/2018 13:58

This was one that Carillin was involved with..





And Breedon had work there as well.




Haven't a clue if this will hit BREE though

[philanderer] 15/1/2018 11:56

100,000 @ 83p just printed , job to say if it's a buy or a sell from early this morning.

[philanderer] 15/1/2018 10:36

FELIX , looks like a few are taking no chances this morning with that worry.

[felix99] 14/1/2018 18:56

wonder if they have any exposure to CLLN?