Breedon Share Discussion Threads

[swiss paul] 21/11/2024 10:12

21 November 2024

21 November 2024

BREEDON GROUP PLC



Resilient performance sustained

Full Year Outlook in-line with expectations

Capital Markets Event: Evolving Breedon 3.0



Breedon Group plc ("Breedon" or the "Group"), a leading vertically-integrated international construction materials group in Great Britain, Ireland and the United States, provides the following trading update for the ten months to 31 October 2024.

Trading performance

The Group has delivered a resilient performance in the ten months to 31 October 2024 with robust pricing and a focus on operational excellence more than offsetting the impact of a challenging GB market.

When compared to the same period in 2023, revenue for the first ten months increased 7% and for the four months to 31 October increased 11%. On a like-for-like1 basis revenue decreased 4% in the first ten months and decreased 1% for the four months to 31 October.

We have continued to invest in our assets, providing further opportunities to optimise operational performance. We have generated good free cash flow and are on track to deliver a further reduction in covenant leverage at the year end, providing us with the financial flexibility to continue to invest for growth.

Highlights

· In GB, although market conditions remained challenging overall, performance has improved since the half year and our Irish business has continued to perform well. Both businesses have seen encouraging levels of forward enquiries.

· The integration of BMC is now well advanced; performance in the period under our ownership was robust and ahead of plan with pricing remaining strong.

· During October BMC completed its first transaction under Breedon ownership, acquiring a manufacturer of masonry blocks, retaining wall blocks, pavers, stone, and brick products located in Western Illinois. The business is highly complementary to BMC and generates revenue of c. US$9.0m per annum.

· Our Cement business successfully completed the scheduled kiln shutdown and replacement of the primary crusher at Hope on time and within budget. Kinnegad has maintained its world leading performance with alternative fuel substitution consistently in excess of 80%.

· We made further progress in respect of our sustainability priorities with our carbon reduction targets now validated by SBTi. Further information can be found in the separate announcement released today and on ourwebsite.

Outlook

The Group has sustained its resilient performance in the year to date andour expectations for the full year remain unchanged. We continue to expect to deliver full year 2024 underlying EBIT in-line with market consensus2.

Enquiry and tendering levels across all three geographies are healthy as we look forward to 2025. With interest rates falling and increased political clarity, the conditions for a housing-led recovery coupled with an ongoing focus on infrastructure investment are in place, most notably in GB. While market risks remain, we expect 2024 should represent the floor in construction materials volumes. In the meantime we will continue to focus on self-help, executing operational and commercial excellence programmes while pursuing opportunities in our healthy M&A pipeline.

[weemonkey] 30/10/2024 14:07

This Budget should be very good for BREE one would think

[my retirement fund] 07/10/2024 20:00

Ireland is booming a very different economy to UK and Ireland, especially benefits from its unique dual status as a conduit in and out of the EU, so there are enormous sums of legal and illegal border activity which is making many if them rich beyond their wildest dreams.

[swiss paul] 07/10/2024 16:53

In Northern Ireland for the weekend, Breedon wagons all over the place :-)

[robow] 29/7/2024 16:01

from Citywire
Deutsche: New growth runway at ‘resilientR17; Breedon

Breedon (BREE) is showing ‘resilience in the face of challenging conditions’, says Deutsche Bank.

Analyst Christen Hjorth retained his ‘buy’ recommendation and target price of 520p on the Citywire Elite Companies AA-rated construction materials group, which gained 1.6% to 413.6p on Friday.

It reported ‘robust’ first-half results in a ‘weather-impacted half’, with earnings up 2%, moderately ahead of Hjorth’s forecast.

‘Management points to its full-year expectations remaining unchanged,’ he said. ‘We therefore retain our [pre-tax earnings] forecasts, although earnings per share nudges up modestly due to lower finance costs and tax.

Hjorth calculated that Breedon trades on a 2024 price to earnings ratio of 13 times and a dividend yield of 4%.

‘We view these as attractive valuation metrics for a company with scope for a meaningful volume recovery and margin normalisation, alongside a new potential US growth runway.’

[swiss paul] 25/7/2024 20:26

Divvi money is coming from where?
Where has this cash magically appeared from to pay a divvi?

[my retirement fund] 25/7/2024 09:04

I'm not seeing a problem there. Dividend increasing and excellent long term outlook. A good performance given the challenging spring and terrible summer weather.

[swiss paul] 24/7/2024 14:58

Breaking down you mean!
What a load of guff
BREEDON GROUP PLC

Interim results 2024



Strategic progress delivers a resilient performance

BMC trading ahead of plan; integration progressing well

Management expectations for the full year unchanged



Breedon Group plc (Breedon or the Group), a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, announces unaudited results for the six months ended 30 June 2024.





Statutory highlights



Underlying1highlights



£m

except where stated

H1 2024

H1 2023

% change



H1 2024

H1 2023

% change

% LFL2



Revenue

764.6

742.7

3%



764.6

742.7

3%

(6)%



EBITDA3

103.4

103.9

-



118.1

112.3

5%

(5)%



EBITDA3 margin

13.5%

14.0%

(50)bps



15.4%

15.1%

30bps





EBIT4

56.9

62.1

(8)%



71.6

70.5

2%

(9)%



EBIT4 margin

7.4%

8.4%

(100)bps



9.4%

9.5%

(10)bps





Profit Before Tax

46.5

56.5

(18)%



61.2

64.9

(6)%





Basic EPS5

10.0p

13.0p

(23)%



13.9p

15.3p

(9)%





Dividend per share









4.5p

4.0p

13%





Net Debt6









472.3

220.4

114%



Covenant Leverage7









1.6x

0.7x

0.9x



ROIC8









8.8%

10.0%

(120)bps







FINANCIAL HIGHLIGHTS



Third platform launch and resilient pricing offset weather impact and market headwinds

· Revenue increased 3% supported by our entry into the US

· Pricing contributed 2ppt, offset by 8ppt volume reduction which principally reflects wet weather conditions across the Group and challenging markets in GB

· Underlying EBIT increased 2% backed by disciplined operational efficiency and cost recovery



Financial position retains strategic flexibility

· Covenant Leverage increased to 1.6x; remains comfortably within our target range of 1x to 2x

· RCF refinanced; securing access to longer-term finance and greater liquidity with incremental reduction in ongoing debt service costs

· Seasonal working capital outflow as expected

· Post-tax ROIC 8.8%; reflecting short-term dilution from the BMC acquisition and impact of increased corporate tax rates

Interim dividend increased to 4.5p; demonstrating confidence in the long-term growth outlook

OPERATING HIGHLIGHTS
Operational performance benefitted from flexible local model and agile execution

· GB revenue decreased 5%; robust surfacing performance and modest price progression, partially offset by volume declines related to the more challenging market. Underlying EBIT down 17%, impacted by operational gearing

· Strong performance in Ireland where Underlying EBIT improved by 37%; successful tendering season and healthy order book with growing activity levels following resumption of the governing Assembly at Stormont

· BMC trading ahead of prior year and plan; contributing nearly four months of revenue and earnings with healthy markets and a robust order book

· Cement Underlying EBIT margin improved to 15.2%; soft volumes offset by resilient pricing, lower energy costs and increased provision of lower clinker content cement



STRATEGIC HIGHLIGHTS



Active M&A pipeline in all geographies

· Launched a scalable third platform in the fragmented and growing US construction materials market through the acquisition of BMC

· M&A pipeline across the three platforms remains well populated and active, completing two bolt-on transactions in GB



Sustainability agenda succeeding

· Reinvigorated our health, safety and wellbeing strategy, promoting a proactive safety culture with clearer and firmer rules focused on risk elimination

· First CDP ratings awarded (Climate Change: B, Water Security: C) and targets submitted to SBTi for formal validation

· Continue to decarbonise the cement business; increased use of alternative fuels, solar farm construction commenced at Kinnegad, increased sales of CEM II, and further progress on Peak Cluster



Strategic initiatives and investment drive operational excellence

· Quarry operational improvement programme being implemented from 'face to gate', delivering efficiencies and process improvements

· BMC integration progressing well; investment made in health and safety, quarry optimisation, technology and sustainability


CURRENT TRADING AND OUTLOOK
Growth expected in all our markets from 2025 as economic and political landscape stabilises

· The new UK Government's growth agenda appears supportive of the construction market, in particular housebuilding and infrastructure. Alongside the resumption of a governing Assembly at Stormont, these are encouraging developments

· In RoI, where we have secured positions on high-profile road projects, recent reports reinforce the long-term structural need for housing and infrastructure investment

· In the US, market fundamentals and long-term growth prospects are underpinned by significant infrastructure and housing deficits alongside robust stimulus funding and healthy state budgets

· All our markets are expected to benefit from falling interest rates in the months ahead

· Our healthy balance sheet provides us with the strategic flexibility to invest for growth, maintain our progressive dividend policy and execute bolt-on acquisitions across each platform

· Management expectations for the full year remain unchanged with Underlying EBIT slightly more weighted towards the second half than is typical
Rob Wood, Chief Executive Officer, commented:

"For the team to deliver such a resilient performance given the challenging GB market conditions we have faced is an incredible achievement.

"We achieved a major strategic objective in March, entering the US and establishing our third platform with the transformative acquisition of BMC, creating the foundation from which we will build out our US business. We expanded our routes to market, delivering two bolt-on transactions in GB, and growing organically through our downstream businesses, pulling through more of our own material. We moved our sustainable growth strategy forward on all fronts in the first half of 2024 and were pleased to see this recognised by CDP with our first ratings placing us at the forefront of our sector for Climate Change and Water Security.

"During this time the quality and flexibility of the Breedon team, of whom I am incredibly proud, have kept us close to our customers, accelerated our drive for efficiencies, and strengthened our operations. As the economic and political clouds clear in GB, our markets will return to growth in time and we will be well placed to grow and succeed.


​

[my retirement fund] 10/7/2024 10:41

Finally breaking out.

[undervaluedassets] 22/5/2024 05:48

According to my sharescope they have holdings amounting to circa 38% of the equity.

Ready to stand corrected (Sharescope can get these things wrong)

Blackrock have a chunk too.. 9%

Anyway what do these high rollers want to do with all this equity - management buyout? takeover?

As I said there is something going on..

Can't blame them.. BREE Great business that has been largely snubbed by the market for years despite pleasing results.

If silly UK investors don't want it .. someone else will gladly steal it from them for a few pieces of silver.

[undervaluedassets] 22/5/2024 05:39

There is something afoot and there has been for a while..

There have been huge purchases by Mr Bhatia and Abicad going on for a while now.

[robow] 20/5/2024 07:52

that's a very large purchase

[brucie5] 18/5/2024 14:55

Wot, no comment? Just noticed this in the FT dir dealings and thought I'd take a look. That's a big purchase.

--------------------------------------------------------------------------

Notification of transactions by Directors/Persons Discharging Managerial Responsibilities (PDMR) and Persons Closely Associated with them (PCA)



The Company has been notified that on 9 May 2024 Abicad Holding Limited a PCA of Amit Bhatia, Non-executive Chair of Breedon Group plc and PDMR, bought 1,100,000 ordinary shares of £0.01 each (Shares) in the Company, at an aggregate price of £3.8275 per share.



This notificatio

[swiss paul] 26/4/2024 18:40

thanks XAMF, sometimes it helps us less educated if you can put some context around the chart.

your retrace might be helped by piggies being in the trough
The Company announces that on 25 April 2024 the following PDMRs were each granted conditional awards under the Company's Performance Share Plan (PSP awards) in respect of the three-year performance period (2024 to 2026), to acquire the number of ordinary shares of £0.01 in the Company (Ordinary Shares) set against their names in the table below. The PSP awards will normally vest on 25 April 2027, subject to continued employment and the satisfaction of the undernoted performance conditions. In addition, any resulting shares will be subject to a further holding period of two years from the date of vesting.



Director & PDMR

Role

Ordinary Shares subject to PSP award

Rob Wood

Chief Executive Officer

366,739

James Brotherton

Chief Financial Officer

217,061



Performance measure

Weighting

Calibration of targets

Percentage of part of PSP award capable of vesting

EPS

42.5%

Company's fully diluted underlying EPS for 2026

Less than 37.50 pence

37.50 pence

Between 37.50 pence and 40.40 pence

40.40 pence

Between 40.40 pence and 44.44 pence

44.44 pence or more

0%

25%

Pro-rata straight-line basis
between 25% and 50%

50%

Pro-rata straight-line basis
between 50% and 100%

100%

Relative TSR

42.5%

Company's TSR ranking relative to constituents of the FTSE 250 Index (excluding investment trusts)

Below median

Median

Between median and upper quartile

Upper quartile or better

0%

25%

Pro-rata straight-line basis
between 25% and 100%

100%

Sustainability - Reduction of Core Carbon Intensity*

15%

% reduction of Core Carbon Intensity during the three year performance period

Below 4.95%

4.95%

Between 4.95%

and 6.6%

6.6%

Between 6.6% and 8.25%

8.25% or better

0%

25%

Pro-rata straight-line basis
between 25% and 50%

50%

Pro-rata straight-line basis
between 50% and 100%

100%



* Core Carbon Intensity measures reductions in carbon intensity per tonne of core product sold.



not exactly taxing are they

[xamf] 26/4/2024 07:16

Swiss Paul. No digestive tracts need to be exposed in response to my chart. It shows the FIB retracement levels should (heaven forbid) Bree falls back from current levels. Don't currently hold but Bree is on my watchlist.

[triskelion] 26/4/2024 00:17

#1268 - does the Naked Trader also publicise his sells?

[swiss paul] 25/4/2024 18:24

so besides me getting my chittlin livers and gizzards out WTF does that chart mean

[xamf] 25/4/2024 08:47

free stock charts from uk.advfn.com

[my retirement fund] 24/4/2024 08:08

I don't think it took a rocket scientist to work that one out, but then the worsening macroeconomics is something the management should have flagged and indeed been flagging for the last 8 years on the trott since Brexit basically. If the were following a sensible tack, eg saying stuff like we are consolidating out British operations to realise cost savings and we are investing in more profitable European and American operations and if the were actually doing that well. The share price would be a lot higher!

[triskelion] 17/4/2024 00:18

"get-out-quick" / GOQ? hehe

[starpukka] 11/4/2024 20:57

Bought by the Naked Trader today.

[my retirement fund] 12/3/2024 09:57

Good time to add