Breedon Share Discussion Threads

[redartbmud] 20/2/2018 10:26

Phil

Thanks for the updates. It looks like an opportunistic move, where they see a good benefit accruing to the Breedon business.
It does look like a bit more dilution is on the cards for existing PI's, but that has to be factored into holding shares in a business whose model includes growth through acquisition.

red

[philanderer] 20/2/2018 09:56

Seems Lagan have some problems ..


Hundreds of Lagan Construction Group jobs at risk in Northern Ireland


The Belfast Telegraph understands administrators are set to be appointed to a number of companies within the family-owned Lagan Construction Group.

It would affect a number of companies acting both locally and internationally.

Lagan Construction Group declined to comment on the matter yesterday evening but is expected to make an official public announcement imminently.

One employee told the Belfast Telegraph that local staff at the Belfast-based firm had yet to be informed officially, but she believed her job and those of others were at risk.

Lagan Construction Group, chaired by Michael Lagan, is one of the largest civil engineering and construction businesses in Northern Ireland. It employs more than 500 people.

[philanderer] 20/2/2018 09:54

‘No pyrite-linked’ unit part of approach for Lagan

The approach for Belfast-based Lagan Group — one of Ireland’s largest cement, building products, and contractors — said an approach by the UK stock-market listed Breedon for part of its business does not involve any Lagan company involved in legal disputes over the use of pyrite in homes and other premises.

Lagan confirmed it was mulling an “unsolicited approach” made for a trade sale for part of its business by London AIM-listed Breedon but that “no Lagan company associated with the pyrite litigation is connected with the Breedon approach”, a spokeswoman added.


The potential acquisition of some of Lagan companies by Breedon — the UK firm has a stock market value of £1.1bn (€1.24bn) — should face few regulatory hurdles if it went ahead because Breedon though linked to Lagan through the Whitemountain business has little to no building contracts across the island. Davy analysts said Breedon has the financial resources “albeit an equity raise may be required depending on the size” of any deal. Shares in Breedon rose by over 0.5%.

Citing the execution of its acquisition of Hope Construction in 2016, Goodbody said Breedon is “a quality management team”.

Lagan contracts include work at airports at Shannon, Dublin, and Belfast, as well as numerous road and tunnel contracts across the island. Davy said its Lagan Cement is the third-largest Irish cement manufacturer; its Lagan Products unit is a major sand producer and roof tiles-bricks-and-concrete blocks maker; its Lagan Asphalt unit has terminals in Belfast and Dublin for bitumen; owns the large Welsh Slate business; and that Lagan Homes is the North’s largest home builder.

[philanderer] 19/2/2018 16:43

Agree red. Ticking up at the end of the day as well.

[redartbmud] 19/2/2018 07:47

Doubt that they would be in talks for an acquisition if there was a big hole in the balance sheet as a result of the Aberdeen roads contract.
Tom is far too clever for that.

[philanderer] 19/2/2018 07:35

Building materials group Breedon has confirmed that it is in talks to take over Northern Ireland’s Lagan Group.

[philanderer] 14/2/2018 23:45

Brexit sell-off

Another construction materials firm that has enjoyed tremendous success in recent years is AIM-listed Breedon Group (LSE: BREE). Perhaps not surprisingly the share price of the group formerly known as Breedon Aggregates has followed a very similar trajectory to that of its FTSE 250 counterpart, having suffered a similar panic-induced sell-off following the 2016 referendum.

But as weaker investors were left nursing their losses, those that kept the faith have been rewarded handsomely. Not only did the company’s shares fully recover from the Brexit sell-off, but a year later went on to reach new all-time highs of 92.5p, a gain of 30% on my original buy call in October 2016.

UK’s largest
Forecasters are expecting new infrastructure and housing work to show healthy growth over the next two years, and with these market segments accounting for approximately two-thirds of Breedon’s end-use markets I believe now is not the time to be taking profits. Breedon is already the UK’s largest independent construction business, but I think there is still plenty of scope for it to grow even bigger.

Trading on a price/earnings ratio of 17, I see Breedon as another worthy construction play.

[philanderer] 14/2/2018 20:21

Breedon Aggregates (“Breedon”) and Whitemountain have been jointly awarded a contract valued at up to £55 million to supply and lay asphalt on the £745 million Aberdeen Western Peripheral Route/Balmedie–Tipperty project (AWPR/B-T).

Commenting on the contract Alan Mackenzie, Chief Executive of Breedon Aggregates Scotland, said:

“This is our largest-ever contract award and will provide the backbone of work for our contracting division over the next two years. Importantly, the two mobile plants will mean we’re self-sufficient on-site.




Breedon are working for the JV ...

Its client is the main contractor, AWPR Construction Joint Venture on behalf of Aberdeen Roads Limited. Aberdeen Roads comprises Balfour Beatty, Carillion and Morrison Construction (Galliford Try).

[compnews1] 14/2/2018 15:02

Philander, thanks for alerting us about the over-running £550 million Aberdeen Western Peripheral Route. Is Breedon part of this jv? I am confused as I thought the above project is a jv between Balfour Beatty Investments Ltd, Carillion Private Finance (Transport) Ltd and Galliford Try Investments Ltd. Pls clarify. thanks

[philanderer] 14/2/2018 14:02

.... over-running £550 million Aberdeen Western Peripheral Route .

[philanderer] 05/2/2018 12:54

Coxhoe quarry extension to be decided by Durham County Council

[philanderer] 02/2/2018 13:29

The Competition & Markets Authority (CMA) is considering calling in an asset swap deal announced in December by Tarmac and Breedon.


Tarmac parent company CRH and Breddon Group announced a deal on 13th December under which Breedon would get four Tarmac quarries and an asphalt plant, while Tarmac would get 27 of Breedon’s ready-mixed concrete plants plus £4.9m cash.

The CMA is exploring the impact this deal might have on competition in the market and is inviting comment from customers, competitors or any interested party.

Comments should be sent to [e-mail] by 15th February 2018.

[compnews1] 01/2/2018 12:08

Thanks Alter Ego

[philanderer] 31/1/2018 23:31

Plans to extend the lifespan of a County Durham quarry in a move which would secure a "significant" number of jobs and help boost the region's construction, civil engineering and manufacturing industries look set to be approved.

Raisby Quarry – formerly known as Coxhoe Quarry – is one of ten currently active in the area producing crushed rock. Mineral extraction at the site predates the modern planning system, with the first permission issued in 1947.

Breedon Northern Ltd, which is part of the Breedon Group, is the current operator having acquired it as part of the purchase of Hope Construction Materials in 2016.

[mirandaj] 24/1/2018 12:17

Good to see:

[philanderer] 23/1/2018 11:04

More positive this morning

100k @ 82p just printed , may be a buy from earlier ?

[alter ego] 23/1/2018 10:06

from post 484 above:

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.

[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.