Breedon Aggregates Limited is the largest independent aggregates business in the UK after the global majors. We operate 52 quarries, 27 asphalt plants, 61 ready-mixed concrete & mortar plants and three concrete block plants in England, Wales and Scotland, employing more than 1,250 people.
The group has strong asset backing, with around 400 million tonnes of mineral reserves and resources in the UK.

Breedon Aggregates’ strategy is to continue growing through consolidation of the UK heavyside building materials sector.

We have two fully-integrated autonomous businesses, in England and Scotland, each with its own management team.

Breedon Aggregates England

Our English operations are headquartered at Breedon-on-the-Hill near East Midlands airport and employ around 450 people. Breedon Aggregates England operates 13 quarries, 7 asphalt plants and 18 ready-mixed concrete and mortar plants, serving the East & West Midlands and East Anglia, north Wales, Greater Manchester and South Yorkshire.

Our English contracting services business undertakes minor road surfacing projects as well as major infrastructure contracts, serving an area from the east coast to mid-Wales and from the M62 corridor to the South Midlands.

Breedon Aggregates Scotland

Our Scottish operations are headquartered in Dundee and employ around 550 people. Breedon Aggregates Scotland operates 24 quarries, 15 asphalt plants, 30 ready-mixed concrete plants and two concrete block plants, primarily supplying the north, west and east of Scotland including the Hebrides.

We own a 37.5% stake in BEAR Scotland, which manages the north-east, north-west and south-east trunk road networks on behalf of Transport Scotland, and also own a majority stake in traffic management services company Alba Traffic Management, the leading provider of traffic management solutions throughout Scotland.

Mobile Concrete Solutions (MCS), our joint venture with specialist construction services company TSL, offers on-site concrete batching services anywhere in the country, specialising in wind farms, hydro-electric projects, power grids and plans and offshore energy - often in extremely remote locations.




http://www.breedonaggregates.com/

IC this week - Canny acquisitions, self help and improving conditions in the construction market are leading to predictions of explosive earnings growth.
The real cherry on the cake for Breedon will be the recovery in the construction market. A recovery should bring the double whammy of improving volumes and prices, due to a largely fixed cost base, this could send profits soaring.
Peel Hunt estimates that between 30 and 60% of revenue will drop through to cash profits, depending on the product mix. And prospects for the construction market look good, with the most recent government spending review outlining a pipeline of infrastructure investments worth £100bn between 2015 and 2020. While a 2014 PE of 19 looks high, this drops to 15 in 2015, and also represents a discount to the 23 times 2014 rating of Marshall's shares, which has lower growth forecasts to Breedon.
Underlying profits in the first half were up 69% and the business is backed by hard-to-come-by assets. Also there is considerable potential for broker upgrades due to the sensitivity of the business to any pick up in its end markets and further earnings -enhancing acquisitions. No dividend.

OFT Review of Scottish Acquisition

RNS


RNS Number : 7695O

Breedon Aggregates Ld

24 September 2013






24 September 2013

BREEDON AGGREGATES LIMITED

("Breedon" or the "Company")



OFT Review of Scottish Acquisition



As previously announced by Breedon, on 30th April 2013 the Office of Fair Trading (OFT) informed the Company that it wished to review the recent acquisition of Aggregate Industries (AI) business in northern Scotland to decide whether there were competition issues which required referral to the Competition Commission (CC) for further examination. The OFT has today announced that, following its investigation, it believes that there are some competition issues which it considers require further examination by the CC.



Breedon has conducted an extensive examination of the market and believes strongly that there are only minor issues in one product area which may require disposal of a limited number of individual assets. Breedon believes that its view is consistent with the findings of the CC in their recent market review and the criteria applied to the Anglo American/Lafarge merger in 2012.



The main investigation by the CC is expected to last for up to six months. Further announcements will be made as appropriate in due course.

With the housing market pick up there should be more demand from Breeden.

Trading Update

RNS


RNS Number : 8712T

Breedon Aggregates Ld

26 November 2013






26 November 2013



BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")



Trading Update & Appointment of New Group Finance Director



Breedon issues the following statement in advance of its year-end. The Group is due to announce its preliminary results on 4 March 2014.



Trading Performance



The Group's trading performance has been very encouraging and pre-tax profits for the full year to 31 December 2013 are expected to be somewhat ahead of market expectations, assuming favourable weather conditions for the remainder of the year. Sales volumes of aggregates, ready-mixed concrete and asphalt are all ahead year-on-year in both England and Scotland, assisted by contributions from our acquisitions of Aggregate Industries' operations in Northern Scotland and Marshalls' quarries in England.



Group sales revenue in the second half of the year has been stronger than in the first half and the full-year EBITDA margin is expected to be ahead of the prior year, driven by continuing improvement in the underlying business and the benefit of acquisitions.



Operational progress



Both the English and Scottish businesses continued to make good progress this year, helped by a general improvement in construction demand and a continued focus on management of costs, prudent investment and careful selection of work.



The Competition Commission's investigation into Breedon's acquisition of Aggregate Industries' Scottish operations is continuing and discussion regarding their findings is likely to commence in January. Breedon continues to believe that there are only minor issues in one product area, which may require disposal of a limited number of individual assets.



Appointment of Group Finance Director



The Board has been notified by Ian Peters of his intention to step down as Group Finance Director in order to pursue other interests. The Board intends to appoint Rob Wood as Ian's successor with effect from March 2014, and the required regulatory announcement will be made in due course. A Chartered Accountant, Rob, 47, is currently Group Financial Controller of Drax Group plc. He was previously Chief Financial Officer - Australia & Asia Pacific at Hanson PLC.

The Board would like to express its thanks to Ian for the significant contribution he has made to the development of the Group over the last five years and is grateful that he has agreed to remain in his role until March 2014 to ensure a smooth handover.



Outlook



For 2014 the Mineral Products Association is forecasting 2-4 per cent growth in aggregates volumes, 3-5 per cent growth in ready-mixed concrete and 2-4 per cent growth in asphalt - a more positive outlook than for a number of years. The Construction Products Association is also forecasting a return to growth in UK construction output in 2014.



Against this backdrop, we have reason to be optimistic about the coming year and remain confident of making further progress in 2014.



- ends -

26 Nov Numis 39.00 Add

Breedon Aggregates: Jefferies starts with a target price of 42p and a buy recommendation

A buy in this weeks IC - Breeden Aggregates expects to deliver stronger than expected profits for the full year. The group has 400m tonnes of mineral reserves just as demand is set to grow.

Strong purchasing today.


Breedon Aggregates Ltd (BREE:LSE) set a new 52-week high during today's trading session when it reached 38.50. Over this period, the share price is up 74.73%

Starting to look positive.

Shares - A forward price/earnings ratio for next year of 24.5 times looks aggressive, given the historic volatility of the construction industry and integration risk associated with acquisitions.

Nice chart. Shame it's so thinly traded.

Final Results

Highlights

· EBITDA margin up full percentage point to 12.6%

· Strong performances in both England and Scotland

· Sales volumes in all products significantly ahead of prior year

· Capital expenditure substantially increased to £13.3m (2012: £8.5m)

· Two transformational acquisitions completed, funded by £61m placing

· Very strong balance sheet: gearing more than halved to 37%

· New Group Finance Director appointed and assumed role on 3 March 2014

· Business positioned for organic and acquisitive growth


http://www.moneyam.com/action/news/showArticle?id=4766029

A good day for Breeden, moving with the upturn in housing.

Breedon expands at Clearwell

RNS


RNS Number : 9643D

Breedon Aggregates Ld

04 April 2014








News release



4 April 2014

Breedon expands at Clearwell

with acquisition of ready-mix plant from Aggregate Industries



Breedon Aggregates, the UK's largest independent aggregates business, has expanded its operations at Clearwell quarry near Lydney in Gloucestershire with the acquisition from Aggregate Industries of the ready-mixed concrete plant on the site.



Clearwell was one of four quarries acquired from Marshalls PLC in April last year. It is one of the largest limestone quarries in the region and serves a wide range of customers in Gloucestershire and Monmouthshire.



The acquisition of Aggregate Industries' concrete plant and its associated ready-mix trucks, which have operated on the site for a number of years, will significantly expand Breedon's market opportunity in the region. In addition to providing a new added-value outlet for Clearwell's washed limestone sand, it will also enable the company for the first time to service the industrial, commercial and housing markets in and around the Forest of Dean.



Tim Hall, chief executive of Breedon Aggregates England, said: "It's great to be open for business in ready-mix in Gloucestershire. This is our first plant in the west of England and our customers can look forward to the same outstanding local service that we offer from every one of our other 50 ready-mix businesses around the UK."

- ends -

The massive merger announcement from Holcim and Lafarge may have an unexpected beneficiary – in the form of Breedon Aggregates. The competition authorities in the UK are expected to approve the merger between those two European rivals, while at the same forcing them to let go of some assets. One possible unit that might come free is a cement works in Staffordshire. Breedon is a consolidator, snapping up assets on the cheap. The purchase of that unit would give the company its first entry into cement, allowing it to produce the full range of building materials, The Times Tempus writes.

Other units might also break free, too. Simultaneously, the British outfit stands to gain from the disruption which the deal might create for its rivals’ operations in the UK. The reaction in the stock’s price has been muted, perhaps due to the fact that they are trading at a sky-high multiple, “but, as I have suggested before, this is one for the patient investor”, Tempus adds.

Competition & Markets Authority Review

RNS


RNS Number : 3784E

Breedon Aggregates Ld

09 April 2014








News release



9 April 2014

BREEDON AGGREGATES LIMITED

("Breedon" or the "Company")



Conclusion of Competition Authority's Review of Scottish Acquisition

Breedon notes the publication today of the Competition & Markets Authority's (CMA) final report on its investigation into the Company's acquisition of Aggregate Industries' (AI) business in northern Scotland. The report confirms the CMA's provisional findings, published on 6 February 2014, which require Breedon to dispose of a ready-mixed concrete plant in the Peterhead area and an asphalt plant in the Aberdeen area, and to give undertakings in respect of its asphalt plants in the Inverness area.

The Company will now work with the CMA to finalise the terms of these divestments and undertakings within 12 weeks. Breedon has every intention of reaching agreement with the CMA as quickly as possible, in order that it can expedite the sale of the assets concerned and proceed with the full integration of the former AI businesses.

Further announcements will be made in due course.

The Company will update the market on current trading in its AGM statement on 17 April 2014 and will release its interim results for the 6 months ending 30 June 2014 on Thursday 17 July 2014.

- ends -

Breedon acquires Huntsman's Quarries

StockMarketWire.com

Breedon Aggregates, the UK's largest independent aggregates business, has acquired Huntsman's Quarries, a long-established aggregates company based in the North Cotswolds, for £15m in cash. Huntsmans operates a substantial limestone quarry and ready-mixed concrete plant at Naunton, between Cheltenham and Chipping Norton, together with a second ready-mixed concrete plant at Evesham in Worcestershire and a fleet of 20 haulage and mixer trucks.

It owns three further quarries near Naunton which are currently dormant. In 2013 the business sold over 300,000 tonnes of aggregates and generated sales of approximately £8m with EBITDA of approximately £2m.

Breedon says the business has performed well in 2014 with year-on-year revenues ahead in the first quarter. In total, Naunton has planned mineral reserves of 4 million tonnes and potential further resources of 6 million tonnes. The mineral produced by Huntsmans is a high quality, harder-than-average Cotswold stone which is ideal for natural walling and is also particularly suitable for Type 1 sub-base and ready-mixed concrete. In addition, the business supplies natural roofing slate, decorative blocks, agricultural lime and blue clay. Breedon says the acquisition gives the company access to the affluent and buoyant Cotswolds market, together with a new presence in the north Worcestershire concrete market. The consideration will be settled in cash from the company's existing resources and Breedon will also assume Huntsmans' debt of up to £2m.



Story provided by StockMarketWire.com

2 Jun Numis 58.00 Buy

Half Yearly Report


Highlights

· Trading strongly ahead of comparable period in the prior year

· Volumes ahead in all key product groups

· Underlying EBITDA margin up over one percentage point to 14.2%

· Organic investment generating improved operational performance

· Mineral reserves enhanced with further extensions

· Agreement reached with the Competition & Markets Authority, paving way for integration of former Aggregate Industries businesses

· Successful bolt-on acquisition of Huntsmans

· Refinancing completed post-period-end


http://www.moneyam.com/action/news/showArticle?id=4850606

Director Deals - Breedon Aggregates (BREE)

BFN

Peter Tom, Chairman, bought 350,000 shares in the company on the 17th July 2014 at a price of 39.00p. The Director now holds 48,291,867 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

Director Deals - Breedon Aggregates (BREE)

BFN

Simon Vivian, Chief Executive Officer, bought 250,000 shares in the company on the 17th July 2014 at a price of 39.00p. The Director now holds 16,524,371 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

Director Deals - Breedon Aggregates (BREE)

BFN

David Warr, Non Executive Director, bought 500,000 shares in the company on the 17th July 2014 at a price of 39.00p. The Director now holds 5,555,556 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

1 Aug Berenberg 50.00 Buy

Re Joint Venture

RNS


RNS Number : 6775Q

Breedon Aggregates Ld

03 September 2014






News release



3 September 2014



BREEDON AGGREGATES LIMITED

("Breedon Aggregates" or the "Group")



Breedon expands into mid-Wales

through joint venture with H V Bowen & Sons



Breedon Aggregates, the UK's largest independent aggregates business, has acquired a 50 per cent interest in H V Bowen & Sons (Holdings) Limited, the owner and operator of Tan-y-Foel quarry near Welshpool. The investment has been funded in cash from the Group's own resources.



The quarry will provide Breedon with an interest in approximately 3.4 million tonnes of strategically important high 'polished stone value' (PSV) aggregates. Sources of high (+68) PSV aggregates are very scarce and Tan-y-Foel has some of the highest quality reserves in the country. High PSV stone has a high skid resistance and is therefore in great demand for surfacing roads with heavy traffic flows. H V Bowen also operates a ready-mixed concrete plant.



The business will continue to trade as H V Bowen and will be jointly managed by Breedon Aggregates England Limited and the Bowen family, who have owned and operated the quarry for more than 70 years.



Breedon already owns a sand and gravel quarry near Mold in North Wales and the joint venture with H V Bowen expands the company's operations into mid-Wales for the first time.



Commenting on the investment Tim Hall, chief executive of Breedon Aggregates England, said: "We're pleased to have secured access to some of the highest quality PSV stone in the country, which will provide a ready supply of this key aggregate to our asphalt plants. It will also enable us to extend our reach into an important new market for aggregates and readymix."



- ends -

Acquisition

RNS


RNS Number : 8138T

Breedon Aggregates Ld

09 October 2014






9 October 2014

BREEDON AGGREGATES LIMITED

("Breedon Aggregates" or the "Group")



Breedon to expand into south-west Scotland

with planned £21m acquisition of Barr Quarries Ltd



Breedon Aggregates, the UK's largest independent aggregates business, has agreed terms with Barr Holdings Limited to acquire Barr Quarries Limited ("Barr Quarries"), the market-leader in aggregates in south-west Scotland, for £20.8 million in cash. Completion is expected by the end of this month and remains subject to TUPE consultations and final due diligence.



Barr Quarries employs approximately 130 people and is headquartered near Cumnock, 35 miles south of Glasgow. It operates 11 quarries, five asphalt plants and six ready-mixed concrete plants extending from Dalry in the north to Stranraer in the south and east to Moffat. It has approximately 57 million tonnes of mineral reserves and resources, enough to last approximately 70 years at current rates of extraction. It also operates a successful contract surfacing business.



In the year to 31 December 2013 Barr Quarries generated sales of £25.5 million with an underlying EBITDA of £2.7 million. The business has performed well in 2014, with year-on-year sales ahead in the first half.



The Board believes that Barr Quarries will be an excellent fit for Breedon. It is fully integrated and will give the Group a fifth self-contained region in Scotland.



Commenting on the planned acquisition Peter Tom CBE, Breedon's chairman, said: "Scotland has played a vital part in Breedon's success and we have made significant investments there over the past four years. With the uncertainties surrounding the independence issue now behind us, we believe our prospects north of the border have never been brighter and we can look ahead with renewed confidence. Our acquisition of Barr Quarries is a clear demonstration of our long-term commitment to this important market.



"Barr Quarries represents a great opportunity to secure some rare assets in a brand-new region, which perfectly complements our existing operations in Scotland. It's an excellent business with a fine heritage, and great people - all of whom we look forward to welcoming to the Breedon family."



Philip Cheevers, Chairman of Barr Holdings Ltd, said: "I am pleased with the sale of our Quarry interests to Breedon. This will give the quarry business the opportunity to further grow and develop under the umbrella of a major aggregates company and we wish them every success.



"At Barr we will continue to focus on our core Construction business which is performing well and on our Environmental business which has made significant progress over the last few years and is trading very strongly."



A further announcement will be made on completion of the acquisition of Barr Quarries.



- ends -

10 Oct Numis 58.00 Buy

Breedon expands asphalt capacity

RNS


RNS Number : 1793U

Breedon Aggregates Ld

14 October 2014








News release



14 October 2014



Breedon expands asphalt capacity

with acquisition of two new plants





Breedon Aggregates, the UK's largest independent aggregates business, has extended its reach into Suffolk and Essex with the acquisition of asphalt plants at Cavenham near Bury St Edmunds and Wivenhoe near Colchester.



The Cavenham plant is located in a sand and gravel quarry owned and operated by Allen Newport, with a capacity of approximately 200 tonnes per hour. The Wivenhoe plant is located in a quarry owned and operated by Lafarge Tarmac and is rated at approximately 120 tonnes per hour. Both plants were previously owned by Hope Construction Materials.



Commenting on the purchases Tim Hall, chief executive of Breedon Aggregates England, said: "These acquisitions will enable us to service a new community of customers in Essex and Suffolk and provide additional outlets for our aggregates.



"We now have a network of nine asphalt plants throughout central England, stretching from Leominster in the west to Norwich in the east."

Completion of Acquisition

RNS


RNS Number : 9027V

Breedon Aggregates Ld

03 November 2014








News release

3 November 2014





BREEDON AGGREGATES LIMITED

("Breedon Aggregates" or the "Group")



Completion of acquisition of Barr Quarries



Following the announcement on 9 October of Breedon Aggregates' conditional agreement with Barr Holdings Limited to purchase Barr Quarries Limited, the Group confirms that, following the conclusion of TUPE consultations and final due diligence, the acquisition has now been completed.



- ends -

Sale of Doseley deveopment site for ?11m

RNS


RNS Number : 8834W

Breedon Aggregates Ld

13 November 2014








13 November 2014

Breedon Aggregates Limited

("Breedon Aggregates" or "Breedon")



Sale of Doseley development site for £11m



Breedon Aggregates, the UK's largest independent aggregates business, has completed the sale of a 60-acre site at Doseley, near Telford in Shropshire, to BDW Trading Limited (a subsidiary of Barratt Developments Plc) for £11.0 million.



The land is on the site of a former concrete products plant and has outline planning consent for 460 homes, which will be built and marketed under the David Wilson Homes brand.



Breedon will receive phased cash payments over four years commencing in 2014.



- ends -

Trading Statement

RNS


RNS Number : 8668X

Breedon Aggregates Ld

25 November 2014








News release

25 November 2014

BREEDON AGGREGATES LIMITED

("Breedon" or the "Group")

Trading Update



Trading Performance



Breedon continues to trade strongly, with both the recently acquired and underlying businesses making good progress. For the 10 months to October, sales volumes of aggregates increased by 26 per cent, asphalt by 12 per cent and ready-mixed concrete by 18 per cent compared to last year.

Group sales revenue for the 10 months to October increased by 20 per cent to £226 million. Assuming that weather conditions remain favourable for the remainder of the year, underlying EBITDA and underlying basic earnings per share for the full year are expected to be ahead of current market expectations1.

Operational progress & outlook

Our businesses in both England and Scotland have continued to make good progress, with product volumes in both countries ahead of last year and EBITDA margins improving. Trading conditions in England have continued to be strong, with high demand in our key markets. In Scotland conditions have been more subdued; however some areas such as Aberdeen have seen strong growth.

We are delighted to have invested around £40 million on acquisitions during the year to date and expect to improve the performance of these businesses as they become fully integrated with Breedon's existing operations.

The outlook remains positive, with a number of projects already secured for next year. Both the Construction Products Association and the Mineral Products Association are forecasting further market growth in the UK. In particular we expect some improvement in Scotland, with several large contracts starting in our market areas. We are confident of making further progress in 2015.

Cont/d…2



- 2 -



We will announce our preliminary results for the year to 31 December 2014 on 3 March 2015.

1 The range of analyst expectations for underlying EBITDA and underlying basic EPS are believed to be £34.8 million to £36.1 million and 1.30 pence to 1.46 pence respectively.



- ends -

One of Shares 15 stocks for 2015.

9 Jan Jefferies... 50.00 Hold

Jim Slater -


Breedon Aggregates at 47p has a market value of £480m. The company is engaged in the quarrying of aggregates together with the production of “added-value” products such as asphalt and ready mixed concrete. A favourite of Neil Woodward, the star fund manager, Breedon has bought other businesses to improve its geographical coverage of Britain. The shares’ prospective price to earnings ratio (p/e), a key measure of valuation, is high at 25, but this is justified by next year’s spectacular prospective growth rate of more than 30pc and very good long-term prospects.



http://www.telegraph.co.uk/finance/personalfinance/investing/shares-and-stock-tips/11376838/Jim-Slater-two-more-IHT-free-Aim-shares-to-add-to-your-portfolio.html

Final Results

Highlights

· Steadily improving market conditions throughout 2014

· Financial results strongly ahead of 2013

· Underlying EBITDA margin up 1.7 ppt to 14.3%

· Strong organic growth from core business

· Nearly £50 million invested in acquisitions and on capital projects

· Further improvement in safety performance

· Positive industry outlook

Breedon Aggregates puts the pedal to the metal

By John Harrington

March 03 2015, 10:34am
Breedon operates 53 quarries, 27 asphalt plants, 60 ready-mixed concrete plants and three concrete block plants in England and Scotland
Breedon operates 53 quarries, 27 asphalt plants, 60 ready-mixed concrete plants and three concrete block plants in England and Scotland


Breedon Aggregates (LON:BREE), the UK's leading independent aggregates business, produced rock solid results in 2014.

Steadily improving market conditions, the benefits of its investment programme and a healthy contribution from acquisitions saw revenues and profits advance strongly.

Revenue rose 20.1% to £269.7mln from £224.5mln the year before, while underlying earnings (EBITDA) shot up 36.2% to £38.5mln from £28.3mln.

Profit before tax almost doubled from £11mln in 2013 to £21.4mln in 2014.

The group sold 7.7mln tonnes of aggregates, up from 6.1mln tonnes in 2013, while it shifted 1.5mln tonnes of asphalt (2013: 1.4mln tonnes) and 0.8mln cubic metres of ready-mixed concrete (0.6mln cubic metres).

"The economic outlook is the most favourable for our industry since the end of the recession,” claimed Peter Tom, Breedon’s executive chairman.

“Construction output and demand for our products are expected to increase over the next three years and infrastructure in particular is expected to grow strongly in 2015-18 on the back of recently-announced public spending plans. We continue to see many opportunities to grow and improve our business and we are confident that we will make further progress in 2015," Tom said.

Shares were up 1.5% at 49.1p in mid-morning trading.

proactiveinvestors/breedon-aggregates-to-use-cash-for-acquisitions

3 Mar Numis 58.00 Add

Breedon Aggregates riding the upturn in the construction sector

By Ian Lyall

March 11 2015, 2:59pm
The prelims revealed Breedon generated revenues of almost £270mln from quarrying and shipping aggregates, asphalt and concrete to construction sites throughout the UK


This week’s annual results from Breedon Aggregates (LON:BREE) beat expectations – but also revealed just how far the company had travelled under the stewardship of chief executive Simon Vivian and his team.

Those who have followed the story will know that the base Breedon business was bought out of administration for a pound in 2010 with debts of around £160mln.

This was an operation that over-geared and was hit by the economic downturn that followed the financial crisis.

The prelims revealed Breedon generated revenues of almost £270mln from quarrying and shipping aggregates, asphalt and concrete to construction sites throughout the UK.

And a total of £38.5mln of that was converted to earnings before interest, tax, depreciation and amortisation (EBITDA).

This represents a doubling in top line growth since 2010 and a near three-fold increase in EBITDA.

Over the same period margins improved to 14.3% in this period from 9.5%, while gearing reduced to a very manageable 1.7 times EBITDA, or £66.3mln.

The company is sitting on 66-years of reserves and resources.

In the last four years Breedon has made eight acquisitions, although the underlying business has grown at a decent clip over that period too.

It is fair to say the latest results reveal a company that is in rude financial health. The share price also reflects this bounce back to vitality, rising from 12p to almost 50p today, valuing the business at £500mln.

This is good news for early investors such as the Neil Woodford-backed Invesco fund that got behind the Vivian-led Breedon team, taking a £20mln stake at the start of the journey.

Woodford, who has a habit of picking winners of this ilk, is a two-time Breedon backer with his new fund owning a 13.5% stake in the business.

Those new to the stock might be forgiven for thinking that this particular train departed the station several years ago.

However, Vivian and chief financial officer, Rob Wood, argue that momentum behind the business will continue for some years – only time will tell if the shares follow.

They point out the prospects for construction have never been better.

Major initiatives such as London’s Cross Rail are well underway and the high-speed link to Birmingham is next. At the same time the housing market is in fine fettle as set to grow by around 10% this year.

The momentum is expected to continue for a few more years. The company’s presentation reveals that activity, which started rising in early 2013, is still a long way short of pre-recession levels.

Remember also the progress to date has been achieved against the backdrop of some fairly sketchy economic conditions.

One wonders then just what can be achieved with a tailwind.

Breedon own 53 quarries, 27 asphalt operations and 60 ready-mixed concrete and mortar plants.

But with around 6% UK share it is a minnow when compared with the sector leader Tarmac-Lafarge on 30%.

However, it is big enough to meet the requirements of some fairly large customers – and in Scotland actually boasts Tarmac’s sort of market share.

There are structural changes taking place in the UK – assets are being swapped and sold by the big players who are happy to divest large, capital intensive businesses to invest elsewhere around the world.

It was a beneficiary of divestments by Aggregate Industries and paving firm Marshalls – and there could be other deals on offer.

At the same there are time barriers of entry to this market. It is almost a quarter of a century since planning permission was granted for a new rock quarry in the UK. So it is nigh impossible for a newcomer to grow organically from scratch.

This is why Breedon under Vivian has acquired small, often family-owned operations, aiming to improve profitability, output, reserves and resources.

Vivian and his colleagues have successfully delivered on their buy and build strategy.

Cash generation is such that it has enough headroom to make two or three acquisitions this year for a total of around £30-£40mln, while investors would back the business to buy something larger if a deal comes along, the CEO revealed.

A dividend won’t seriously be contemplated until the business runs out of opportunities to increase its portfolio.

Vivian told Proactive Investors: “We will consider a dividend when we think we have taken the growth story as far as it can go.

"When we think there is no opportunity to re-invest that money in acquisitions we will start paying a dividend. The board reviews this option continuously.”

The City broker Peel Hunt is predicting EBITDA will grow by 18% to £44.8mln this year and then to £51.2mln – though these figures don’t incorporate the impact of acquisitions that might be made in this period.

As analyst Clyde Lewis pointed out: “The outlook for the UK heavy-side building market is good, because of increased infrastructure spending plans.

“This, combined with further market share gains and a flow of acquisitions, will see Breedon continue to grow faster than its peers.”

Breedon Aggregates and Marshalls on acquisition trail as UK construction recovers

By Giles Gwinnett

March 26 2015, 1:24pm
UK construction output grew 7.2% last year, notes Jefferies, driven by residential markets
UK construction output grew 7.2% last year, notes Jefferies, driven by residential markets


Building materials firms Breedon Aggregates (LON:BREE) and Marshalls (LON:MSLH) are set to leverage the upturn in the UK construction market to make acquisitions, reckons US broker Jefferies.

It has upgraded both stocks to 'buy' from 'hold' on the back of this potential growth, and lifted the target price on Breedon 29% to 59p and 26% to 330p on Marshalls, the paving firm.

For Breedon, which was bought out of administration five years ago, acquisitions have been a key plank to the investment case, says analyst Sam Cullen.

The firm believes it has the capacity to fund £30mln a year on purchases, though Cullen says he would not rule out larger transformational deals.

Meanwhile, Marshalls in its recent results, indicated it had the firepower to fund £150mln on acquisitions in the medium term, the analyst points out - most likely on a series of smaller deals, focused on profitable businesses with unique intellectual property.

UK construction output grew 7.2% last year, notes Jefferies, driven by residential markets.

But now the recovery is being seen in the commercial and infrastructure markets and the broker expects continued growth, albeit at slightly lower levels, over the medium term.

"...we expect both Breedon and Marshalls to grow ahead of the market and to take share. For Breedon this reflects ongoing upheaval in the UK aggregates industry, and for Marshalls the group’s focus on new product development."

Drilling down to company specifics, Breedon remains confident that volumes will continue to increase in 2015, though the rate is likely to reduce further, as the recovery moves into a more normal growth phase, the broker says.

Cullen highlights industry stats, which currently forecast growth of between 4-6% for aggregates and 3-5% for asphalt in 2015 as the construction recovery moves beyond the housing market.

"In our view, Breedon is likely to grow ahead of the market, as it integrates recent acquisitions and continues to take share in the markets in which it holds a strong share."

Marshalls' domestic market is largely dependent on the confidence of its core customers - typically older homeowners, while end markets may increase faster as householders take advantage of continued low mortgage rates and increased disposable incomes.

Jefferies also expects Marshalls to benefit as it rolls out new products, particularly those that reduce installation times (which can account for 70% of the total cost), which have grown rapidly over the past two years.

This is particularly important in the domestic market, notes the broker, where 85% of Marshalls customers have projects

Breedon Aggregates says outlook good whatever the election result

By Philip Whiterow

April 17 2015, 12:18pm
“The main political parties have emphasised their commitment to investment in housing and infrastructure, which should drive continuing growth after the election.


Quarry owner and aggregates supplier Breedon (LON:BREE) has made a strong start to its new trading year, with demand in England especially buoyant.

"Trading in the first quarter has been strong. Sales revenue increased by around 30% compared to the same period last year, with acquisitions contributing about half of this growth,” chairman Peter Tom told its annual meeting.

He added the outlook remained good, whatever colour of party wins the general election.

“The main political parties have emphasised their commitment to investment in housing and infrastructure, which should drive continuing growth after the election.

“We remain confident of delivering a performance in line with our expectations in 2015.”

Breedon own 53 quarries, 27 asphalt operations and 60 ready-mixed concrete and mortar plants, a portfolio built through a number of recent acquisitions.

"The businesses acquired last year are performing in line with expectations and our existing operations also continue to deliver organic improvement,” Tom added.

Breedon Aggregates is a good opportunity for long term investors, broker says

By Jamie Ashcroft

April 20 2015, 1:36pm
“I remain a buyer of the stock,' Cammack said


The current price of Breedon Aggregates (LON:BREE) shares presents a good opportunity for longer term investors, according to City broker Cenkos.

Analyst Kevin Cammack in a note highlighted Breedon’s strong first quarter performance, which saw sales revenues 30% ahead of the previous year. It was the result of both organic and acquisition driven growth.

Cammack reckons it is probably premature to upgrade his view for the stock, but, says the update has reaffirmed several key investment attractions for Breedon.

Breedon’s organic growth would likely accelerate once the broader industry cycle begins to comprehensively swing upwards, the analyst added.

In the meantime Cammack believes the company’s management still has elements of ‘self-help’ which can push margins forward further.

At the same time the analyst said Breedon’s acquisition policy is delivering incremental growth and value to the business, and he believes that momentum remains a strong driver for the share.

“I remain a buyer of the stock and as I pointed out a couple of weeks ago, the current phase of flat-lining share price is a good opportunity for longer term investors,” Cammack said.

He added: “A pre-interim IMS will be released on 2 July and assuming trading has not relapsed measurably at that point, I would expect to raise base forecasts for 2015.

“It would be wrong however, to dismiss entirely the possibility of some easing in volume or indeed increased competitiveness at the margin.”

Cammack currently forecasts Breedon’s 2015 profit before tax at £25.4mln and fully-diluted earnings per share at 1.8p, which represent growth of 21% and 16.5% respectively.

.proactiveinvestors,breedon-aggregates-michelmersh-and-marshalls-pave-the-way-to-growth

.proactiveinvestors, breedon-builds-on-conservative-victory

Breedon Aggregates' growth to continue, says Cantor Fitzgerald

June 08 2015, 12:45pm

Cantor, which has just started coverage, reckons its track record with these deals “sets the bar for value creation from asset purchases”.



Facilities are in already in place for up to £50mln in acquisitions .




Deals such as the Holcim /Lafarge merger should throw up more acquisition opportunities for quarry owner Breedon Aggregates (LON:BREE), argues Cantor Fitzgerald.



The broker says international majors are now focused on size, which means they are now more likely sellers than buyers of small assets in the UK, an area where Breedon specialises.



It has made eight acquisitions in the past four years and Cantor, which has just started coverage, reckons its track record with these deals “sets the bar for value creation from asset purchases”.



Facilities are in already in place for up to £50mln in acquisitions without needing to raise new equity. Helping here will be the fragmented nature of the UK aggregates business.



Small independents are in charge of 400 quarries that produce 35% of the UK’s annual material consumption, a structure that gives Breedon plenty of room to grow.



Cantor believes Breedon will be near its long-term 15% underlying profit [EBITDA] margin target this year, compared to 11.6% in 2012.



Acquisitions have chipped in £12.5mln to that growth and if Breedon can repeat this over the next three years through more deals, Cantor believes it would add a minimum 7p to the share price.



In addition, the UK construction market is expected to grow by 3%-4% with the roads budget, of particular interest to Breedon, to grow by 11% this year and 1%-7% thereafter.



Cantor concedes Breedon shares are highly rated already, but a superior growth profile and the fact it has grown from “almost nothing” in 2008 to the fifth largest aggregates producer in the UK today warrants the premium.



"To invest at this valuation one must believe that Breedon will close further acquisitions, increase growth capex as planned and realise strong returns from this capex.



"We think it can, aided by a strong underlying market. The group is uniquely placed to close on targets in our view and has a track record of creating value by doing so."



'Buy' with a target price 55p, it says. Shares today were up slightly to 46.8p.

Half yearly report

Highlights

· Strong trading performance

· Underlying business well ahead of prior year

· Underlying EBITDA margin up to 17.0%

· Huntsmans and former Barr business performing well

· Step-up in capital investment on track

· Mineral reserves & resources replenished

· Several acquisition opportunities under review

Company News

Breedon Aggregates posts strong first half; says it's set to beat full-year expectations

Thu, 23 July 2015


Breedon Aggregates posts strong first half; says it's set to beat full-year expectations



(ShareCast News) - Breedon Aggregates posted a 92% rise in first-half pre-tax profit amid growing revenue, as the company said it looks set to beat market expectations for the full year.
Pre-tax profit for the six months to 30 June came in at £17.5m from £9.1m the previous year, on revenue of £160.5m, up 28% from £125.2m.

Underlying basic earnings per share came in at 1.29p from 0.73p, while net debt fell to £58.3m from £63m.

The company said it had enjoyed a strong trading performance, with 4.5m tonnes of aggregates sold versus 3.6m in the same period in 2014, 0.9m tonnes of asphalt sold compared with 0.7m and 0.4m cubic metres of ready-mixed concrete versus 0.3m.

Executive chairman Peter Tom CBE said: "Trading during the first half was strong, with both the underlying business and recent acquisitions performing ahead of our expectations. March was a record month for the group, with exceptional performances from both England and Scotland.

"Assuming that current trading conditions continue through the second half of 2015, we believe that market expectations for the year will be exceeded."

At 14:48, shares were up 1.9% at 53.50p.

/breedon-aggregates-boss-looks-to-carry-momentum-into-second-half

Breedon Aggregates featured in our weekly round-up of announcements from AIM.

See more at http://tinyurl.com/nfr2eks

IC - more to come.

Jim Slater - Breedon

Breedon is engaged in the quarrying of aggregates together with the production of asphalt and ready-mixed concrete.

The interim results on July 23 were very strong, with profits before tax up by 92pc and earnings per share up by 77pc.

The company said it believed that “market expectations for the year will be exceeded” and added that “several further acquisition opportunities are under review”.

The company’s broker, Peel Hunt, has raised its target price to 60p.

The forward p/e ratio is high at 19 for 2016. However, growth prospects are strong and any further acquisitions are very likely to be earnings-enhancing, so at 52p the shares are a hold.

Time to sell, fully valued.

6 Nov Cantor... 60.00 Buy

I bought before Xmas

Good news released yesterday..

Lots more to come I think ... IMHO


Breedon Aggregates notes contract win

StockMarketWire.com

Breedon Aggregates and Whitemountain have been jointly awarded a contract valued at up to GBP55m to supply and lay asphalt on the GBP745m Aberdeen Western Peripheral Route/Balmedie-Tipperty project (AWPR/B-T).

The 50/50 joint venture will supply and lay more than 500,000 tonnes of asphalt material for the works, which are being constructed by AWPR Construction Joint Venture on behalf of Aberdeen Roads Limited.

The AWPR/B-T is the longest roads construction project currently under construction in the UK, extending from Stonehaven in the south to Tipperty in the north and comprising 55 kilometres of dual carriageway, 22 kilometres of slip roads and 39 kilometres of side roads and accesses.

StockMarketWire.com
Breedon Aggregates has been awarded a contract valued at up to GBP10 million by Wills Bros John Paul JV Limited to supply drystone, ready-mixed concrete and asphalt to the GBP35 million first stage of the A9 dualling project between Kincraig and Dalraddy south of Aviemore.

The five-mile stretch incorporates five new structures, numerous side roads and accesses to local estates. It is the first stage in a GBP3 billion project to transform 80 miles of single carriageway to dual carriageway between Inverness and Perth by 2025.

Breedon is investing heavily in its Meadowside quarry near Kingussie to service the contract and ensure that supplies to its existing customers in the area are unaffected.

The company is erecting a new high capacity concrete plant and a Benninghoven mobile asphalt plant at the quarry, immediately adjacent to the project, to produce the asphalt and concrete thus reducing the environmental impact of truck movements for the project. Breedon will supply substantial quantities of drystone, along with approximately 25,000 cubic metres of concrete and around 100,000 tonnes of asphalt to the project. Work is due to begin later this year and will continue through into 2017.

StockMarketWire.com
Breedon Aggregates posts pre-tax profits of GBP31.3m for the year to the end of December - 46.4% up on last time.

Revenues rose by 18.1% to GBP318.5m and underlying EBIT increased by 55% to GBP37.8m.

Executive chairman Peter Tom said: "2015 was another significant year for Breedon. Our trading performance continued to improve and we again reported record results. We finalised our largest ever contract win and announced the planned acquisition of Hope Construction Materials. We are tremendously excited by the future potential for this business.

"Early in 2016 we were joined by our new Group Chief Executive, Pat Ward, whom I would like to once again warmly welcome to Breedon Aggregates. He succeeded Simon Vivian, who oversaw the successful development of the Group during its first five years and will continue to serve as a non-executive director.

"The outlook for our business continues to be encouraging. The Government remains committed to infrastructure investment and all the relevant forecasting bodies predict modest but sustained growth in construction output over the next few years. This means a steady growth in demand for our products. Against this background, volumes are expected to recover gradually to pre-recession levels by 2020.

"We begin an exciting new era in 2016 with the planned acquisition of Hope and we look forward to the future with confidence."

StockMarketWire.com
Breedon notes the announcement today by the Competition and Markets Authority that it has completed its phase 1 review of Breedon's proposed acquisition of Hope Construction Materials an has concluded there is a realistic prospect of a substantial lessening of competition in a limited number of local ready-mixed concrete markets in England and Scotland.

Breedon says this outcome is in line with its expectations and the company now has a short period during which to offer remedies to address the CMA's outstanding concerns.

Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later this summer in line with previous guidance.

StockMarketWire.com
Breedon notes the announcement today by the Competition and Markets Authority that it has completed its phase 1 review of Breedon's proposed acquisition of Hope Construction Materials an has concluded there is a realistic prospect of a substantial lessening of competition in a limited number of local ready-mixed concrete markets in England and Scotland.

Breedon says this outcome is in line with its expectations and the company now has a short period during which to offer remedies to address the CMA's outstanding concerns.

Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later this summer in line with previous guidance.

broker-upgrade-for-breedon-with-cma-clearance-and-divi-in-sight

Proactive investor - Breedon Aggregates Limited (LON:BREE) has proposed a name change to ‘Breedon Group PLC’.

The change will need shareholder approval, as will the plans to simplify the trading brand of the group to ‘Breedon’

Proactive investor - Breedon Aggregates Ltd (LON:BREE) is expected to report an upbeat first-half performance, at least in England.

Broker Peel Hunt, which has a 'buy' recommendation on Breedon with a 77p target price, said it suspects England will have continued to do better than Scotland in the period.

Peel expects the group to say it remains on track to meet expectations set before its acquisition of Hope Construction Materials, which it announced last November.

Ongoing capital spending programmes will have helped boost profits as should the balance of price rises versus costs.

The broker said: "While 'Brexit' will have affected consumer and corporate confidence levels for embarking on new investment projects, the extent to which it has impacted activity will not be known for a few months.

"Infrastructure work is unlikely to be affected.

"The Hope deal should be completed from the start of August, which means we will have to take one month from our estimates for 2016, but do not see any changes to 2017 figures at this stage."

Half year report
Highlights

· Excellent first-half operating performance, with strong contributions from both England and Scotland

· Underlying EBIT margin improved to 14.0%

· Strong earnings growth and cash generation

· As planned, significant increase in capital expenditure as investment continued in expanding capacity and improving operational efficiency

· Integration planning for acquisition of Hope Construction Materials Limited well advanced and completion of acquisition expected on 1 August (subject to final clearance from the CMA)

· Further bolt-on acquisitions under consideration

· We remain confident of meeting 2016 market expectations

21 Jul Cantor... 80.00 Buy
21 Jul Peel Hunt 77.00 Buy

Update on Acquisition

RNS


RNS Number : 8017E

Breedon Aggregates Ld

21 July 2016




21 July 2016

Breedon Aggregates Limited

("Breedon")



Breedon update on acquisition of Hope Construction Materials Limited ("Hope")

Further to the announcement on 30 June 2016, Breedon is pleased to announce that it has now entered into separate agreements with each of Tarmac Trading Limited ("Tarmac") and The Concrete Company Limited ("TCC") for the sale of the 14 ready-mixed concrete plants that are required by the Competition and Markets Authority ("CMA") to be divested in order to remedy local competition concerns arising in connection with Breedon's acquisition ‎of Hope. Completion of the agreements with Tarmac and TCC is conditional upon final CMA acceptance of the divestment undertakings offered by Breedon and CMA clearance of the Hope transaction and will not become effective until that date. Breedon remains confident of being able to complete ‎the main Hope transaction on 1 August 2016, subject to CMA approval.

- ends -

Completion of the acquisition of Hope

RNS


RNS Number : 7906F

Breedon Aggregates Ld

01 August 2016




1 August 2016

Breedon Aggregates Limited

("Breedon")

Completion of the acquisition of Hope Construction Materials Limited

Further to the announcement on 18 November 2015, Breedon is pleased to announce that it has completed the acquisition of Hope Construction Materials Limited ("Hope") for £336 million.

As a result of the completion of the acquisition ("Completion"), the 259,120,245 new ordinary shares have been issued to Abicad Holding Limited, an associated company of Hope's seller, Cortolina Investments S.à r.l. (the "Consideration Shares"). Application has been made to the London Stock Exchange plc for the Consideration Shares to be admitted to trading on AIM. It is expected that admission will become effective and that dealings in the Consideration Shares will commence on AIM on 2 August 2016 ("Admission").

On Admission, the enlarged share capital of Breedon will be 1,410,841,536 ordinary shares of no par value in issue. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of Breedon.

Upon Completion, Amit Bhatia, Hope's Chairman, was appointed to the Breedon board of directors as a non-executive director.

Best-aim-companies-2016-named

AIM transaction of the year
This is an award that offers a number of different types of transaction. Blancco Technology (BLTG) sold its original core electronic repairs business to concentrate on its fast-growing data erasure and security operations. Part of the proceeds of the disposal were returned to shareholders and the rest is being used to grow the remaining business.
Aggregates supplier Breedon (BREE) announced the £336 million acquisition of Hope Construction Materials late last year, but completion was delayed by the competition authorities. Breedon had to sell 14 ready-mixed concrete plants for the deal to go ahead. This deal made Breedon, which started as AIM shell Marwyn Materials in 2008, into the UK's largest construction materials supplier.
At the turn of the year, fibre optic infrastructure developer CityFibre Infrastructure Holdings (CITY) paid £90 million for KCOM's network assets outside of the Hull area - a 45% discount on what it would cost to replicate them - and raised £80 million at 50p a share. This makes CityFibre more than five years ahead of where it would be in terms of organic growth and gives it a national presence.
MP Evans (MPE) has sold its cattle assets at a profit of $7.38 million and is concentrating on its Indonesian oil palm plantations. Net debt was $6.7 million at the end of June 2016, but the final disposal proceeds received in July were $79.7 million - with an estimated tax charge of $13.8 million payable on this figure. This provides cash to spend on land and planting oil palm.
Best guess: Breedon

best-aim-companies-2016-confirmed


AIM transaction of the year


Breedon Group (BREE)
The £336 million acquisition of Hope Construction Materials completed an eight-year journey for the holding company from a shell to the UK's largest construction materials supplier – even after selling 14 ready-mixed concrete plants to please the competition authorities. I thought that Breedon (BREE) was the stand out on the shortlist. Although the transaction was announced before the end of 2015 it did not complete until 1 August 2016. Even so, Breedon had already started to progress its integration plans. The acquisition provides a better product mix for Breedon which will not be as dependent on aggregates. Asphalt, cement and ready-mixed concrete are the other main areas of the business. The group is benefiting from infrastructure spending and further acquisitions are likely as well as higher capital spending to increase capacity.

Trading Update
RNS
RNS Number : 4832Q
Breedon Group PLC
30 November 2016
 
30 November 2016                                                                                    
 
BREEDON GROUP PLC ("Breedon" or "the Group")
Trading Update
 
Trading performance
 
Breedon delivered a strong performance in the 10 months to 31 October 2016.  Both volumes and revenues in the former Breedon Aggregates business were ahead of the prior year, supplemented by a three-month contribution from the former Hope Construction Materials business ("Hope").
 
Including Hope, Group sales volumes of aggregates increased by 25 per cent, asphalt by 1 per cent and concrete by 96 per cent1.
 
Total Group revenue for the 10-month period increased by 31 per cent to approximately £361 million.  The integration of Hope is progressing well, with synergies coming through earlier than had previously been expected.
 
Assuming that weather conditions remain favourable for the remainder of the financial year, the Group's underlying EBIT for the full year is expected to be ahead of current market expectations2.
 
Acquisition of the Sherburn Minerals Group
 
Furthermore, Breedon has today announced the acquisition of the Sherburn Minerals Group ("Sherburn") for a total consideration of up to £15.7 million, funded from the Group's existing resources.  Sherburn is a heavyside building materials business with operations in the north of England and Scotland, supplying aggregates and ready-mixed concrete, together with cement from two import terminals in Blyth near Newcastle and Dundee in eastern Scotland. 
 
Further information on this acquisition is provided in the separate announcement released by the Group today.
 
Outlook
 
The UK economy has generally held up well following the EU Referendum result in June.  Construction activity has been broadly sustained and, although uncertainty remains about the likely timing and terms of our departure, we remain positive about the outlook for the industry.  We were encouraged by the Chancellor's stated commitment last week to increase investment in our national infrastructure, together with continued support for housebuilding, both of which should have a beneficial impact on our business in the medium term.
 
 
We have a number of projects already secured and underway for next year and the continuing integration of Hope, coupled with a full-year contribution from Sherburn, are expected further to enhance our performance.  We therefore remain confident of making continued progress in 2017.
 
We will announce our preliminary results for the year ending 31 December 2016 on 8 March 2017.
 
- ends -
 
1 In accordance with the Cement Market Data Order 2016, cement volumes will not be disclosed.
2 The Group believes that current market expectations for underlying EBIT range from £52 million to
   £54 million.
 
The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
 
 
For further information:

Breedon Group plc
Pat Ward, Group Chief Executive 
Rob Wood, Group Finance Director
01332 694444 

Stephen Jacobs, Head of Communications
07831 764592

Cenkos Securities plc
Max Hartley (Nomad)
020 7397 8925

Peel Hunt (joint broker)
Justin Jones / Mike Bell 020 7418 8900
 
 
Note to editors
 
Breedon Group plc is the UK's largest independent construction materials group.  Following completion of the acquisition of Sherburn, Breedon will operate the country's largest cement plant, two cementitious import terminals, around 60 quarries, 30 asphalt plants, 200 ready-mixed concrete plants and three concrete products plants nationwide.  The Group will employ around 2,300 people and have more than 750 million tonnes of mineral reserves and resources.  Its strategy is to continue growing organically and through acquisition of businesses in the UK heavyside construction materials market.

Acquisition
RNS
RNS Number : 4831Q
Breedon Group PLC
30 November 2016
 
30 November 2016                                                                                    
 
BREEDON GROUP PLC ("Breedon" or "the Group")
Acquisition of the Sherburn Minerals Group for £15.7m
 
Breedon, the UK's largest independent construction materials group, announces it has entered into a binding agreement to acquire the Sherburn Minerals Group ("Sherburn") for a total consideration of up to £15.7 million1.
 
Sherburn is a leading independent heavyside building materials business headquartered in County Durham, employing approximately 110 people.  It operates four quarries and five ready-mixed concrete plants in County Durham, Northumberland, North Yorkshire and Cumbria.  It also distributes cementitious products from two import terminals at Blyth near Newcastle and Dundee in eastern Scotland.
 
Sherburn reported an underlying EBITDA of £1.8 million on revenues of £16.1 million in the year to 31 March 2016.  It has in excess of 21 million tonnes of mineral reserves and resources, together with significant cement storage capacity at its two terminals.
 
The purchase price will be satisfied by the payment of £9.5 million in cash, funded from the Group's existing resources, together with the assumption of £6.0 million of debt.  A further conditional payment of £0.2 million is payable one year after completion.  Following completion of the acquisition Paul Allison, Sherburn's current Managing Director and a minority shareholder, will remain with the business as a consultant.
 
Commenting on the acquisition Pat Ward, Breedon's Chief Executive, said: "Following our acquisition of Hope earlier this year, which significantly expanded our geographical footprint in the north of England, Sherburn is a perfect infill acquisition for us.  It gives us additional mineral reserves and access to new markets for our aggregates and concrete, as well as a first-rate workforce.
 
"It also complements our existing cement plant at Hope and will enable us to expand our cementitious business through the importation of cement and ground granulated blast-furnace slag (GGBS) through Sherburn's two strategically located terminals in north-east England and eastern Scotland."
 
- ends -

Breedon a 'buy', says Berenberg
Share
09:35 05 Jan 2017
The aggregates group would not be immune to any Brexit-inspired slowdown, but the acquisition strategy offers hope of continued strong growth

The acquisition of Hope completed at the beginning of August
Berenberg has upgraded its numbers and upped its price target for Breedon Group PLC (LON:BREE) following the increase in guidance given by the aggregates company.
The new price target is 85p, up from 80p. Breedon’s shares currently trade at 71.5p.
The German bank notes the company delivered impressive growth in 2016, despite tricky conditions in its end markets.
Growth and margins look like they improved over the second half of 2016, judging by the upbeat trading statement at the end of November, according to Berenberg.
Breedon derives around two-thirds of its revenue from infrastructure spending in the UK, around one-fifth from commercial projects and the rest from housing, so it would not be immune to any Brexit-inspired downturn.
For now, the impact of Brexit appears to be limited, however, and management appears upbeat about the infrastructure outlook.
Berenberg is tipping revenue hit £452mln in 2016, including a £125mln from recently acquired Hope Construction; Hope’s numbers have been integrated with Breedon’s for five months.
Its earnings before interest and tax (EBIT) margins are running a little below the 10% level, which Berenberg thinks will have the effect of trimming 1.5 percentage points off Breedon’s EBIT margin in 2017, but longer term the German bank thinks there is scope to lift profitability in the Hope business to a level more in line with the group average.
Furthermore, there is potential for more bolt-on acquisitions.
“We believe the buy-and-build strategy of the firm will continue and note that despite ending 2016 with c£184mln net debt we think the business will be almost in net cash by the end of 2019,” Berenberg said.
For 2016, Berenberg is now forecasting underlying earnings (EBITDA) of £85mln, rising to £114mln in 2017, when the contribution from Hope really kicks in.
On projected 2017 earnings per share of 3.9p, the shares trade on an earnings multiple of 18.3.
Berenberg rates the shares a ‘buy’.

Final results

Highlights
·     Group transformed by the acquisition of Hope Construction Materials ('Hope'), with integration well advanced and synergies accelerated
·     Strong trading performances across the Group, with improved sales and profits in former Breedon Aggregates business, boosted by five-month contribution from Hope
·     Acquisition of Sherburn Minerals Group completed, adding two cementitious import terminals, four quarries and five ready-mixed concrete plants to Group portfolio
·     Continued planned capital investment in capacity and operational improvements
·     Former Breedon Aggregates business's Lost Time Injury Frequency Rate (LTIFR) improved by 22 per cent to 2.13
·     Strong platform for growth established, with encouraging outlook for 2017 on the back of expected increases in infrastructure and housing investment

8 Mar
Numis
82.00
Add
8 Mar
Shore Capital
N/A
Hold
8 Mar
Peel Hunt
81.00
Buy

15:30 09/03/2017
Broker Forecast - Shore Capital issues a broker note on Breedon Aggregates
Shore Capital today upgrades its investment rating on Breedon Aggregates (LON:BREE) to buy (from hold). Story provided by StockMarketWire.com

AGM Statement
RNS
RNS Number : 2387D
Breedon Group PLC
25 April 2017
 
 
  
 
News release
25 April 2017                                                  
 
Breedon Group plc
("Breedon Group" or "Breedon")
AGM Statement
 
Peter Tom CBE, Chairman of Breedon Group, will deliver the following statement at the Company's Annual General Meeting at 2.00pm today:
 
"Trading in the first three months of 2017 was in line with our expectations.
 
"We have made excellent progress with the integration of the former Hope Construction Materials and Sherburn Minerals businesses.  Their operations have all been integrated as appropriate into Breedon Northern, Breedon Southern and Hope Cement, each of which is now operating as a fully autonomous division.  The migration of all three divisions onto a common IT platform is well underway and will be completed in the next few months.
 
"Meanwhile we are continuing to invest in capacity and operational improvements across the Group, with capital expenditure, as planned, expected to run ahead of depreciation again this year. 
 
"The outlook for our industry continues to be positive.  The Construction Products Association is forecasting a five per cent increase in construction output between 2017 and 2019, with the strongest growth expected to be in infrastructure and housing, which together have historically accounted for approximately two-thirds of our end-use markets.
 
"Against this backdrop, we remain confident of delivering a performance in line with market expectations for 2017."
 
A further update on the Company's progress will be provided in its interim results announcement on 20 July 2017.
 
- ends -

Acquisition of Pro Mini Mix
RNS
RNS Number : 7935D
Breedon Group PLC
02 May 2017
 
2 May 2017                                                                                         
BREEDON GROUP PLC ("Breedon" or "the Group")
Acquisition of Pro Mini Mix
 
Breedon Southern Limited, a subsidiary of Breedon, the UK's largest independent construction materials group, has acquired Pro Mini Mix Concrete, Mortars and Screeds Limited ("Pro Mini Mix"), a 'mini mix' concrete operator based at Oldbury in the Black Country and covering the West Midlands.
 
The company operates a fleet of eight mixer trucks and specialises in delivering small loads of ready-mixed concrete and screeds, up to four cubic metres, to commercial and domestic customers.
 
Breedon Southern already operates a successful mini mix business, 1stMix, which has a strong presence throughout the East Midlands and East Anglia.  Pro Mini Mix, which will be based at Breedon Southern's new ready-mixed concrete plant in Walsall, will enable the Group to extend its coverage across the central belt of England, taking advantage of the buoyant markets in and around Birmingham. 
 
Commenting on the acquisition Tim Hall, Chief Executive of Breedon Southern, said: "Pro Mini Mix is the perfect complement to 1stMix.  It has a well established reputation in the West Midlands market, with a strong local service ethos and a great team.  It also offers us another valuable route to market for our aggregates and cement."
 
- ends -

19 Jun
Peel Hunt
90.00
Buy

2 Nov
Numis
96.00
Add

StockMarketWire.com
Breedon expects underlying EBIT for the full year to be in line with current market forecasts, assuming normal weather conditions.

Breedon said it delivered another solid performance in the 10 months to the end of October.

It said both volumes and revenues were ahead of the prior year, including a full 10-month contribution from the former Hope Construction Materials business, which was part of the group for only three months in the corresponding period of 2016.

Group sales volumes of aggregates increased by 47 per cent, asphalt by 2 per cent and concrete by 99 per cent.

An update said: 'Our cement business is performing in line with our expectations.

08:30 06/12/2017
Broker Forecast - Peel Hunt issues a broker note on Breedon Aggregates
Peel Hunt today downgrades its investment rating on Breedon Aggregates (LON:BREE) to add (from buy) and raised its price target to 92p (from 90p). Story provided by StockMarketWire.com

StockMarketWire.com
Breedon has agreed to acquire four quarries and an asphalt plant from Tarmac - a CRH company - for a total consideration of £16.5 million, to be satisfied by the transfer to Tarmac of 27 of Breedon's ready-mixed concrete plants and a payment of £4.9m in cash. The deal is conditional on approval by the Competition & Markets Authority.

The operations to be acquired by Breedon comprise quarries in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales.

The ready-mixed concrete plants to be divested by Breedon are in multiple locations extending from Dumfries in Scotland to Exeter in Devon.

Breedon said the deal was in line with its strategy of expanding its aggregates portfolio, in this case adding approximately 25 million tonnes to the group's mineral reserves and resources, and furthering the development of its asphalt capacity.

It also streamlines Breedon's readymix network.

Breedon said the transaction was not expected to have a material impact on the group's earnings. Breedon group chief executive Pat Ward said: 'This deal brings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral readymix plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.

'It is also a great example of how we can work with our larger peers - in this case CRH, one of the world's most successful global building materials companies - to benefit customers and other stakeholders on both sides.'

Response to Press Speculation
RNS
RNS Number : 2035F
Breedon Group PLC
19 February 2018


BREEDON GROUP PLC ("BREEDON")
RESPONSE TO PRESS SPECULATION
Breedon notes the recent press speculation concerning a possible acquisition of all or a significant part of the Lagan Group ("Lagan"), the market leading construction materials business based in Belfast.
Breedon notes that it regularly engages with companies in its sector and it can confirm that it is in discussions with Lagan and its major shareholders in connection with a possible acquisition of a substantial part of the Lagan business. There can be no certainty that the possible acquisition will proceed, nor as to the terms of the possible acquisition. A further announcement will be made as appropriate.

Annual results

Highlights
· A year of solid progress, with improved performances from all three divisions
· Strong organic earnings growth, supplemented by contributions from acquisitions
· Significant investment in mineral assets, capacity and operational improvements
· Two bolt-on acquisitions completed
· Planned acquisition of Tarmac quarry and asphalt assets announced
· Following full integration of 2016 Hope acquisition, growth platform strengthened, with significant scale, national reach and vertical integration
· Further 25 per cent reduction in Employee Lost Time Injury Frequency Rate (LTIFR) to 1.41

Shore Capital today reaffirms its buy investment rating on Breedon Aggregates (LON:BREE) and set its price target at 78.30p.

10:10 18/04/2018
Broker Forecast - Berenberg issues a broker note on Breedon Aggregates
Berenberg today reaffirms its buy investment rating on Breedon Aggregates (LON:BREE) and raised its price target to 100p (from 90p). Story provided by StockMarketWire.com Broker Forecasts data provided by www.sharesmagazine.co.uk

StockMarketWire.com
Breedon Northern Limited, a subsidiary of construction materials group Breedon Group, said Friday it had completed the acquisition of Blinkbonny Quarry (Borders).

While the financial details of the transaction were not revealed, Breeson said the acquisition would provide it with its first quarry in the region, with approximately 2.8m tonnes of high-quality basalt hard rock reserves and resources and a fleet of ready-mixed concrete mixers and tippers together with a volumetric concrete mixer.

'Blinkbonny gives us a great opportunity to establish a presence in the Scottish Borders, through a business with long-term mineral reserves and resources,' said an Mackenzie, Managing Director of Breedon Northern.

Half year report

Highlights
· Resilient performance in challenging market: underlying EBIT margin maintained at 11.1%
· Continued strong cash generation and organic investment
· Acquisition of Lagan Group, a key strategic step outside Great Britain; integration progressing well
· Two bolt-on acquisitions completed in England and Scotland
· Further progress on safety improvement: Lost Time Injury Frequency Rate reduced from 1.41 in the first half of 2017 to 0.94 in the first half of 2018
· Completion of Tarmac asset swap on 1 July, rebalancing aggregates/readymix portfolio
· Positive outlook in Ireland offsetting continued short-term challenges of GB market
· Remain confident of meeting 2018 market expectations

Trading Update
RNS
RNS Number : 9519H
Breedon Group PLC
21 November 2018

21 November 2018

BREEDON GROUP PLC ("Breedon" or "the Group")
Trading Update

Trading performance

Breedon delivered another solid performance in the 10 months to 31 October 2018, with increased revenues, improved underlying EBIT and continuing strong cash generation, despite the challenges of a flat construction market in Great Britain ("GB") and rising input costs.

Group sales volumes of aggregates increased by 21 per cent and asphalt by 45 per cent compared with the prior year. In common with the rest of the market our concrete volumes declined, by 5 per cent. Our cement business performed in line with our expectations1.

Group revenues grew by 32 per cent to approximately £739 million, including just over six months' contribution from the former Lagan Group, which traded strongly. The integration of this business is progressing well and we remain confident of delivering the anticipated synergies.

Assuming normal weather conditions for the remainder of the financial year, the Group's underlying EBIT for the full year is expected to be in line with current market expectations2.

Outlook

Forecasters expect GB construction output to be flat in 2018 and to grow modestly next year before picking up pace in 2020. Output in Northern Ireland is forecast to increase steadily over the same period, while the Republic of Ireland is expected to deliver double-digit growth.

We continue to commit substantial investment across our business, which brings us ongoing benefits in terms of enhanced performance and improved productivity. Whilst we are mindful of the likelihood of continuing cost pressures next year, coupled with the unpredictability of the outcome of the Brexit negotiations, we have consistently demonstrated our ability to deliver value for our shareholders, irrespective of market conditions. Accordingly, sustained organic improvement, continuing strong cash generation and our broadening geographical exposure, together with the potential for further bolt-on acquisitions, give us confidence that we will make further progress in 2019.

We will announce our preliminary results for the year ending 31 December 2018 on 6 March 2019.

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