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/

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