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/

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