Breedon Share Discussion Threads

[mirandaj] 04/2/2022 11:00

Ref Construction PMI

[alter ego] 02/2/2022 15:26

The market is worried about everything, inflation, covid, supply issues, labour shortages, Ukraine and so on. Not possible to second guess short term so I prefer to wait for more clarity. Longer term, BREE looks to have a strong market offering and the management to cope with issues when they arise. If I were a trader I might try to profit from the uncertainty, but I'm not.

[sphere25] 02/2/2022 15:12

I wish I could be sure there was no adverse effect here from the last update:

"The recovery we experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively by our local teams who have stayed close to their customers and suppliers. While the dynamic cost environment is likely to persist into 2022, the medium-term outlook for our end markets and demand levels remains encouraging, with both the UK and Irish Governments committed to material long-term spending plans for construction."

But I don't know. The wider environment is so uncertain, it is hard to know who is going to lob a grenade at you at the moment. Inflation is worse, costs are higher, staffing issues, supply chains, consumer demand being affected as people reaching into their savings more due to the cost of living crisis. There have been some horrible warnings of late. Prefer to see the update first really.

If I was 100% sure, I would be looking at these whoppers hitting (39.2m and counting - big battle at 86p between bulls and bears that could define the next move) and thinking, a floor might be in the process of forming.

Chart is in a downtrend. It looks like 85p vs 87p at the moment but this level of interest does naturally catch the eye so maybe worth keeping an eye on for a very quick one if no update is forthcoming.

But again, rather see the update first if it doesn't break higher.

Covering the downside first.

All imo
DYOR

[mirandaj] 30/1/2022 11:07

In part:

"Brewin Dolphin returns to RHS Chelsea Flower Show this year with a show garden that has been designed to showcase how a former 1900s industrial brownfield site can be transformed with the tenets of sustainability at its heart.

Key Materials

Our aim is to create the fabric or built form of the garden using recycled materials, The garden is planned as a space already defined by the fabric of pre-existing buildings and semi-demobilised form. Although the new owners have cleaned and restored these buildings for new use we want to create them from a mixture of recycled elements to bring that story to life. We will be using recycled concrete, bricks and other architectural salvage.

The new elements, such as paving and dressing that the owners have chosen are all either completely recycled, repurposed or made from recycled components.

Recycled aggregates

One of our key materials will be Breedon Group'd Recycled ​Aggregate, Breedon Group reclaim and re-sue over 1 million tonnes of recycled aggregate based material each year."

[tole] 28/1/2022 05:58

Long-term opportunity remains at Breedon, says KinderConstruction materials group Breedon (BREE) may have been an underperformer for the Threadneedle UK fund but manager Chris Kinder says long-term trends point provide optimism.In his latest fund update, the manager of the £1.9bn fund said the stock had been a detractor at the end of 2021 as 'optimism about its recently upgraded full-year forecasts was overshadowed by concerns that rising mortgage rates could dent demand for new homes'.Kinder was unconcerned about this blip and retained an optimistic outlook for the stock on the back of UK infrastructure investment.'Our investment thesis remains intact,' he said. 'Demand is underpinned by long-term trends, including UK population growth and the government's plans to redress the historic underinvestment in infrastructure.Shares in Breedon closed down 1.3%, or .1p, at 86.5p on Wednesday.

[swiss paul] 06/1/2022 17:25

unloved at moment?

[undervaluedassets] 10/12/2021 09:17

This is a market leader in what it does.

I do not see building materials going out of fashion any time soon.

And of course, they have pricing power.

Turnover up 2000% over 10 years. Profits up 3000% over 9 years. Meanwhile Share price .. has not reflected that growth.

looks cheap and unloved

[km18] 07/12/2021 14:40

Breedon Group plc issued a trading update for the 10 months to 31st October 2021 a couple of weeks ago. Group revenue was up 31% on equivalent levels in FY19, i.e., pre-Covid. Margin performance was positive and driven by dynamic pricing and cost recovery actions. Underlying EBIT performance for the 2021 full year will now be stronger than previously expected and slightly above the upper end of the range of market expectations. The business has been growing solidly for a number of years now and is reasonably profitable. Valuation may be a bit of a headwind, forward PE ratio near 16 is ranked 11th out of 12 in the construction sector. And the share price is still in a multi-month correction, albeit a shallow one. Certainly a solid company to monitor for now, but there is no rush to buy....from WealthOracleAM

[alter ego] 24/11/2021 16:09

intrigued by reference to "third platform under evaluation" on page 31

[swiss paul] 24/11/2021 15:43

I missed the presentation can someone give me an update please?
thanks

[mirandaj] 24/11/2021 12:10

DOW:

Breedon Group PLC said Wednesday it expects to report a better-than-expected underlying Ebit for the year--at the top end of the market range--boosted by continued growing demand.

The U.K. construction-materials company said the market range for underlying earnings before interest and taxes--a metric that strips out exceptional and other one-off items--is between 122 million and 131 million pounds ($163.2 million-$175.2 million) for 2021.

The company said revenue for the 10 months ended Oct. 31 rose 31% to GBP1.05 billion compared with the same period in 2019, as residential housebuilding and infrastructure spending continued to drive volume growth.

"While the dynamic cost environment is likely to persist into 2022, the medium-term outlook for our end markets and demand levels remains encouraging, with both the U.K. and Irish governments committed to material long-term spending plans for construction," the company said.

In the 10-month period, revenue on a like-for-like basis increased 15% from the same period in 2019, it said.

[mirandaj] 24/11/2021 07:28

Top end of expectations. In July EBIT 109m - 128m Average 117m

Market expectations*

Market expectations are defined as Breedon compiled analyst consensus. As at 23 November 2021 market expectations for Underlying EBIT(2) for the full year 2021 were an average of GBP129m with a range of GBP122m to GBP131m.

[alter ego] 24/11/2021 07:09

Took the words out of my mouth

[cravencottage] 24/11/2021 07:04

Well that's a re-assuring statement.

[alter ego] 04/11/2021 16:41

"Breedon Group plc, a leading vertically integrated construction materials group in Great Britain and Ireland, will issue a trading update on Wednesday, 24 November 2021 at 7:00am.

In addition, Breedon will host a Capital Markets Event for analysts and institutional investors at the London Stock Exchange from 3:30 to 5:30pm on Wednesday, 24 November.

The event will be webcast live and include presentations from Breedon's Chief Executive Officer, Rob Wood; Chief Financial Officer, James Brotherton; and senior leaders, addressing the Group's strategy for long-term sustainable growth.

To register for the Capital Markets Event please contact [e-mail]."

[janhar] 29/9/2021 10:35

Been grateful to see your posts on this board - was wondering if you could give us an update on the current situation regarding drivers and fuel shortages as someone at the coal face

[dgwinterbottom] 27/9/2021 10:57

alter ego and janhar - thank you both, valid points in both cases. However I would have thought HS2 will continue at least as far as Manchester but now excluding the Leeds spur unless there is something further in the background.

[janhar] 27/9/2021 10:30

I thought it was worries over HS2 being cancelled

[alter ego] 27/9/2021 09:36

I don't know if the decline is stock specific as the whole market has come off the highs recently. However, BREE must have lots of lorry drivers operating trucks for concrete, aggregate, asphalt etc. Keeping them may cost more. Fuel shortages may be a factor. Projects on which they are supplying may also be delayed by similar issues. Hopefully, none of this is long term if it is a problem.

[dgwinterbottom] 26/9/2021 15:35

Does anyone have any thoughts as to why the share price has been falling from a high of 113 on 29.6.21 to 99.7 now. There appears to be support at the 97.6 level and I just wonder if it is likely to break down suddenly below that?

[linhur] 15/9/2021 12:07

alta ego

Thank you for clarification

[alter ego] 15/9/2021 11:40

from Breedon web site

"AIM Rule 26

Breedon is a public company with ordinary shares traded on the AIM market of the London Stock Exchange. The information below is disclosed to comply with the requirements of Rule 26 of the AIM Rules for Companies."

[linhur] 15/9/2021 11:04

I thought that Breedon were now on main market after they moved their Head Office from Jersey after Peter Tom retired? I may be wrong

Linhur

[alter ego] 13/9/2021 22:35

Octopus run IHT exempt portfolios so presumably Bree has been added to the stocks they have in their fund.