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Co. linked to chairman buying again. 1,500,000 shares purchased
Been in this a long long time. Beginning to feel dizzy...
Another one spindok. I'll be happy if/when it reaches £4 and I am at least evens again.
Barclays raises Breedon price target to 464 (450) pence - 'overweight'
Always amazes me how people take notice of broker forecasts.. The most amazing one I have seen recently is Hardmans on STX!!
Yesterday was UBS cuts Breedon to 'neutral' (buy) - price target 420 pence.
Have missed something.. Bad broker forecast. Suits need in cheap.
So good that I wonder if I’m missing something, which is why I’m posting my numbers for someone to highlight my error.
I’ve been concerned about the prospect of this third platform in the US because of the high PEs that are being attributed to US aggregate companies. As a result, I anticipated a dilutive placing for any substantial sized acquisition. Today’s news comes as a relief - a modest price for a substantive US acquisition paid with debt.
My numbers:
BMC EBITDA (TTM Oct 2023) $35.5m (£28m) – probably higher year end given the run rate.
Combined group EBITDA £28m + £242m = £270. BMC represents 10.4%.
Enterprise value = BREE mkt Cap (pre-acq) + Net debt + BMC acq = £1,340m + £170m £240m= £1,750m. BMC acq cost represents 13.7% Enterprise Value.
That’s a modest premium (EV/EBITDA) for a 6% growth market, with, judging from BMC’s history of acquisitions, a good pipeline of bolt-ons. Bolt-ons that Breedon can afford from ongoing FCF and debt - a slide in the appendix shows good liquidity and a clear debt maturity profile out to 2026.
Still to digest the 2023 numbers, but at first sight it looks a robust performance with higher FCF than 2022, with same again c.£100m net CapEx. Final dividend higher than I expected too.
Sliced today at *406p , before seeing news below which sent it up 6%
I noticed it was above a 385p target noted a wile ago.
By coincidence notice I first bought this on last years March budget day which was later on 15th.
That 72p = approx 346p post 17/5/23 CONSOLIDATION AND MOVE TO MAIN MARKET
Sharecast News
Construction materials group Breedon on Wednesday said it had bought US-based BMC Enterprises for an enterprise value of $300m (£238.1m).
The deal involves $285m payable in cash on completion, funded through a draw down on Breedon's existing credit facility, with $15m payable in Breedon shares.
Completion is expected to occur by Thursday and the purchase was expected to be earnings enhancing in the first full year of ownership, Breedon added.
BMC is a supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri.
Sharecast News
Construction materials group Breedon on Wednesday said it had bought US-based BMC Enterprises for an enterprise value of $300m (£238.1m).
The deal involves $285m payable in cash on completion, funded through a draw down on Breedon's existing credit facility, with $15m payable in Breedon shares.
Completion is expected to occur by Thursday and the purchase was expected to be earnings enhancing in the first full year of ownership, Breedon added.
BMC is a supplier of ready-mixed concrete, aggregates and building products headquartered in St Louis, Missouri.
I doubled my holding yesterday on notice of results. Happy bunny. Excellent long term hold now..
Dividend doubled? Its up 30%
£5 ! I won't hold my breath, but it's nice to imagine.
US acquisition!
Dividend doubled!
Grew faster than extended expectations!
Growth and cash cow. £5 by the end of the day?
I was sure on the entry to the main market we were heading for 425. Look how that went.
Barclays raises Breedon to 'overweight' (equal weight) - price target 450 (380) pence
RBC on Tuesday initiated coverage of construction materials company Breedon Group with an outperform rating and a price target of 5.75 pounds sterling.
Solid business with cash, resources and strong barriers to entry. Recent good news stories send uplift from analysts suggesting it's a strong buy, there's a chance the government and bank of England might need to act on interest rates due to the recession so benefiting general construction and housing, and ongoing possibility the chairman's going to take over the business due to a history in private equity and a billionaire Indian family. And results update in two weeks. Lots to love!
I've been watching the SP steadily creeping back up to where it should be, but today at the moment up 9p seems unusual as nothing posted on RNS. Does anybody have any information please?
Royal Bank of Canada?
RBC starts Breedon with 'outperform' - price target 575 pence
RBC have hopefully given the share price a boost with a projected healthy premium to the languishing level seen for some time .
Trading update tomorrow what’s everyone expecting ??
S P still floundering at 67p old money
Surely there is something going on...
Abicad have spent just over £99m since the 10th March 2023 buying shares. And its barely made any news coverage.
Guess if a confident director invests £1.6m then the future is sure bright for Breedon. Price being £3-21 approx. at the time of purchase.
Yes - you are bang on with your posting. Others have covered it, however here it is again ................................................
The Company has been notified that on 4 October 2023 Abicad Holding Limited a Closely Associated Person of Amit Bhatia, Non-Executive Chair of Breedon Group plc and a Person Discharging Managerial Responsibilities, bought 5,550,000 shares of 0.01p each in the Company ('Ordinary Shares'), at an aggregate price of £3.37126 per Ordinary Share.
Tickhillman, you're saying that Abicad has insider information and is using that to buy shares? Surely if, as you say, someone with insider information is buying huge amounts of shares that's a good thing...
And you go on to say it will eventually lead to a takeover. Surely a good thing? If at the right premium.
Shareholders will get a say, so not a done deal, the price would have to be right.