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Covid is part of the reason why i've temporarily sold my holding in Breedon. I'll buy back in - probably in 3-4 months time (or sooner, if my speculative investments shoot up). Plan is to hold around 10k shares for the long-term here. Still think it's a really good company, it's just the government aspects, etc
londoner7,
My expectation is for this and other plays I have (Forterra, Michelmersh) to be weak plays for a long period of time. Shutdowns slow down construction and public works.
GL
"Ireland is to enter the most stringent period of lockdown since March last year with the government agreeing late last night that schools and all but essential construction should shut down until January 31."
I missed this news from yesterday, so it's good to see the reason behind the recent/current weakness in SP. It's the unknown that bothers me more.
This will be a temporary impact and coming at this time of the year (weather) leaves time for catch up. I don't see Boris following this lead but Sturgeon might.
Amazing update, followed by a 2% drop - markets never cease to amaze me.
Perfect time for a Christmas top-up for me. Good luck all, and great work Londoner :)
A ray of sunshine on a very poor day.
After the last update I wrote this note to myself:
"Breedon guided analyst’s EBIT estimates up from £57m, and it appears they landed at £67m prior to this update. Guidance is now upped to £70m, and I think it’s significant that it hasn’t come with the usual caveat on weather, “Assuming no materially adverse weather conditions for the remainder of the year”. That points to full year EPS of 2.6p, well short of the pre Covid expectations of 5.5p – 6p.
Year end, the expected debt number below £400m is interesting. I had £320m Pre IFRS 16. £400m equates to approx. £333m, so again, I’m happy with that.
H2 EBIT margin running high 12s but could get a 13 handle. Probably shy of the 2019 H2 margin 13.9%, but still looking good.
Bottom line, I see Breedon going into 2021 with good momentum and a stronger financial position than they entered 2020, with the Cemex assets being integrated. A 100p SP could be back in sight early next year but it might take the results in March to give a final push."
Today's update could be that final push.
EBIT now £75m and net debt well below £400m. I've got 2020H2 12% up on 2019 H2.
I missed that, I should imagine its profit taking. The trades going through lately have all been strong buys. The fundamentals here are incredible, I wouldn't worry, just have to be patient :)
900k whats that about ? taking proft ?
Yes! All good.
Maiden divi due to be announced in the first part of next year and the proceeds from these disposals will feed into the decision on dividend size and the appropriate gearing of the company. My point being that there will be a new cohort of dividend-mandated institutional investors willing/able to invest at that point.
Here we go :) Great news and onwards and upwards from this point. Good luck all
Good news , this has been seriously holding us back, should motor on now.
They’ll be a holdings RNS imminently as I noted a mammoth 33m trade slipped through late yesterday
Decks cleared for action. Lets hope this starts to add value as been in it for three years.. Not a lot to recommend it it yet..
"Breedon, a leading construction materials group in Great Britain and Ireland, notes the announcement today by the Competition and Markets Authority that it has accepted Breedon's undertakings in lieu of a reference to a Phase 2 investigation in respect of its acquisition of certain assets from Cemex Investments Limited. We now expect the disposal of certain assets to Tillicoultry Quarries Limited to complete shortly."
- ends -
https://www.londonstockexchange.com/news-article/BREE/update-on-cma-s-review-of-completed-acquisition/14775359
"With forecasters expecting a further recovery in construction activity in GB and Ireland in 2021 and the UK and Irish governments making significant commitments to infrastructure spending, the outlook for our markets remains encouraging. The Group will also benefit from the integration of the former CEMEX UK assets into its existing operations, along with initiatives to improve performance, anticipated to begin by the end of this year."
"During 2020 we have proved our ability to deliver a resilient performance against a backdrop of unprecedented disruption, which gives us considerable confidence in the long-term outlook for our business."
Great news, onwards and upwards from here. GLA
Yes, all VERY upbeat supported by good numbers and outlook.
https://www.londonstockexchange.com/news-article/BREE/trading-update/14759711
''Breedon has continued to deliver an encouraging performance. The improving trends reported in our most recent trading update in September continued into the fourth quarter,
The Board now expects the Group's Underlying EBIT for the full year to be at least £70 million, which is ahead of current market expectations''
Nice rise into results. Would be good to hear news of the maiden dividend in statement.
Great week so far... keep going Breedon
If the Prime Minister keeps plugging construction then fingers crossed for 80p next week.
Okay. If your looking at level 2 data then you will see a busier book with SETS. I guess that has been the change.
Hi mate, not sure, none really as it’s probably better seeing more of the book, from a lvl 2 point of view. Made another large purchase at 70.60 the other day, so I tend to buy around that point. My view is the banks are offering nothing interest wise so I believe in Breedon and happy to support them going forwards
dazzag, for my part, I noted your comments on this trading change, but I'm not a trader so don't take much note of this area. Although, I think there was a change with the addition of AT trades - I don't remember seeing them here before.
I'm generally in favour of more trades AT or otherwise on the basis that they improve liquidity. When a Breedon director exits and puts their shares onto the market it often hits the SP for several days. But this has typically been founder shareholders with c5m or more shares. I note Pat Ward has c1m so think the market can easily absorb those if he chose to sell.
What do you see as the implications of the changes you see, SETS or otherwise?
Incidentally, I'm happy with Rob Wood taking over the CEO position. An outsider would have been an unknown quantity, and at this time I prefer continuity in the business. My longer term concern has been talk of international expansion, when I'd like to see the still recent acquisitions, Hope, Lagan and Cemex integrated with 15% EBIT margins. If say, a dutch man had been hired as CEO I'd have been on international expansion alert.
Do you guys know about the trading platform change, have you noticed the books changed? More a SETS type now where more of the books on show?
Regarding Dividends. I knew it was in the pipeline, obviously due to recent events I wasn't sure if it had been confirmed or pushed back.
Cloud hill and Breedon quarry.
Dave_1, Breedon said this on dividends last March:
"One of the most common questions I have been asked since becoming Chairman is when Breedon will begin paying a dividend. I am delighted to be able to confirm that we intend to adopt a progressive distribution policy from next year, commencing with a maiden dividend to be declared with our 2021 interim results."
I wouldn't expect any comment, confirmation or otherwise, before that date, typically July. It isn't a question of affordability, rather intention, so I'd be surprised if a nominal dividend wasn't declared. A dividend and a potential move to the main market have been policy considerations for the last few years.
When you say, "The two quarries at Breedon are unbelievably busy", which quarries are you referring to?