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/

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