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The Uk roads are a disgrace. Potholes are everywhere. Hopefully soon there will have to be a nation wide effort to sort them and Breedon may feel some the benefit.
Last post: CityWatcher, 21 May 2024 16:29
Decent set of results and as you say, a decent dividend & due very soon !!!!!
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?
Started: AmatuerInvestor, 21 May 2024 10:59
Last post: AmatuerInvestor, 21 May 2024 10:59
Started: AmatuerInvestor, 4 Apr 2024 14:52
Last post: AmatuerInvestor, 4 Apr 2024 14:52
Co. linked to chairman buying again. 1,500,000 shares purchased
Last post: spindok, 14 Mar 2024 11:49
Been in this a long long time. Beginning to feel dizzy...
Last post: Rylander, 14 Mar 2024 10:07
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!!
Last post: Rylander, 12 Mar 2024 08:47
Yesterday was UBS cuts Breedon to 'neutral' (buy) - price target 420 pence.
Have missed something.. Bad broker forecast. Suits need in cheap.
Started: londoner7, 6 Mar 2024 21:49
Last post: londoner7, 6 Mar 2024 21:49
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.
Started: ripley94, 15 Mar 2023 17:39
Last post: ripley94, 6 Mar 2024 12:25
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.
It will be good to see Bree out of AIM, which has done this holding no favours. I’m not saying it will fly on the main index, but its prospects will probably be brighter.
Interesting comparing the charts of BREE & Holcim ( HOLN )
They both went on a dip from the week to 6th April but BREE carried on falling, HOLN recovered.
Over five years BREE down 20% HOLN up 25%
To July 2021 BREE had been a better buy from April 2018 , but since July 2021 they have gone in opposite directions
Some even older news from before covid ( 29 May 2019 )
Breedon founder cashes in £16m on retirement
Peter Tom CBE, the former Leicester Tigers lock who founded Aggregate Industries in the 1990s, sold it to Holcim in 1997 and then set up Breedon Group 10 years later, retires today on the approach of his 80th birthday.
Peter Tom is stepping down from the board of construction materials supplier Breedon and selling half of his shares in the business (1.3% of the issued share capital), worth approximately £16m. He is still keeping 21.5 million shares, however, accounting for a further 1.3% of the company.
His successor as chairman is Amit Bhatia, the 40-year-old chairman of football club Queens Park Rangers and son-in-law of Indian steel magnate Lakshmi Mittal. Amit Bhatia has been a director of Breedon since its 2016 acquisition of Hope Construction Materials, which Mr Bhatia helped set up three years previously.
The Mittal family invested £272m to set up Hope in 2013 by acquiring assets that Lafarge and Tarmac were required to sell for their merger to go ahead. Amit Bhatia was executive chairman of Hope. Breedon paid £336m for Hope in 2016.
Amit Bhatia now becomes non-executive chairman as of today, having been deputy chairman since April 2018.
Mr Bhatia already owns 17.78% of Breedon through Abicad Holding Ltd. He has committed to buy at least 10 million of the shares that Peter Tom is selling, at a price of 72.0 pence each, and is offering to buy all 22 million at the same price.
Related Information
Peter Tom said: "I am delighted that the board has chosen Amit as my successor. With many years of relevant commercial and board experience, I am confident that he will successfully lead Breedon's board to deliver further sustainable value for our stakeholders, as the group continues to develop and grow.
"I leave Breedon in great shape and am incredibly proud of what we have achieved since we created the company in 2010. I have the highest regard for [chief executive] Pat Ward and the senior management team and I would also like to express my deep gratitude to all of my colleagues who have contributed so much to Breedon's success."
Amit Bhatia said: "It is a huge privilege to be asked to lead the board of Breedon. I joined the company three years ago through its transformational acquisition of Hope and I am more excited than ever to be playing my part in the group's ongoing development.
"Peter was one of the principal architects of the group. He helped conceive a highly successful growth strategy and leaves behind a world-class management team under Pat Ward's leadership. I would like to thank him on behalf of the business for his tremendous contribution during his time at Breedon and we wish him the very best for the future."
Peter Tom has not completely retired, however; he remains executive chairman of Leicester Tigers.
Looks like move to main market on the cards and a 1 for 5 consolidation .
Old news from 9/3/23 ( Peter ) which must of drawn me in here .
Abicad Holding Ltd on Thursday said that it intends to buy more shares in Breedon Group PLC but confirmed it does not intend to make a bid for the company.
The Southampton, England-based firm said it would pay 75 pence per share for the additional shares in Breedon via a reverse accelerated bookbuild.
Abicad currently holds a stake of around 10% in Breedon and is represented on the board by Amit Bhatia, the non-executive chair.
It intends to hold the shares for investment purposes and is willing to buy up to a further 84.7 million shares, which is around 5% of Breedon's share capital.
Abicad said this is a signal of its continued belief in the business and Breedon's overall strategic direction.
I doubled my holding yesterday on notice of results. Happy bunny. Excellent long term hold now..
Started: Dartron, 23 Feb 2024 13:08
Last post: geoshock, 23 Feb 2024 17:07
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.
Started: Rylander, 16 Feb 2024 13:39
Last post: Plopper, 16 Feb 2024 16:13
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?
Started: Dandanman, 13 Feb 2024 08:16
Last post: dazzag, 13 Feb 2024 10:27
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 .
Started: valueinvested, 20 Nov 2023 16:26
Last post: Megan2012, 21 Nov 2023 18:52
Trading update tomorrow what’s everyone expecting ??
S P still floundering at 67p old money
Surely there is something going on...
Started: CityWatcher, 8 Nov 2023 16:22
Last post: AmatuerInvestor, 9 Nov 2023 10:19
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.
Started: Dartron, 3 Oct 2023 18:09
Last post: CityWatcher, 9 Oct 2023 06:47
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.
Tickhilltim, I appreciate your contribution here. Even though the RNS says that they have no intention of making a bid, my hope is that they do. What would be so bad about that? I have bought shares in a company, had some capital appreciation, and some dividends, and then get to sell my stake and find another. What is the problem?
The other side of what you say, is that this vehicle Abicad (which I dont know anything about), may just understand the value of the company - having the inside man. I think most here would agree that the share price seems undervalued. I certainly plan to buy some, though it is not top priority compared to other shares due to the low yield.
Also, have you considered that he might have stepped up to buy the stake because a fund was forced to sell? Maybe he didnt actively seek to buy this lot? The alternative would be further suppression on the open market.
Its interesting what you post, as I am also a TIG holder (formerly CNIC). Very similar situation there (to my untrained eye), is it? Max Royde is a non executive director, but runs the Kestrel Partners LLP, they are nearly up at 29%.
A few links (as its hard to follow due to the ticker change)
https://teaminternet.com/board-of-directors/
https://www.lse.co.uk/rns/CNIC/directors-dealings-m5mbi08vkw0bfia.html
Finally, I did not understand the distinction that you made between a NED and a NE chairman, why does matter?
Asking genuine questions, hope it comes across like that.
PS, been in SRC, it has its own issues (buying earnings to meet BOD share incentives), but looks attractive currently.
I am relatively new to this board.I am concerned that recent contributors have not got to grips with the outrageous behaviour that is being supported by the Board at Bree.Why should you listen to me? I have been an NED on two listed funds boards.
Amateur idiot,get an education.Abicad bought shares not the chairman.
This is a bear- hug.The people buying shares have the benefit of inside info from their planted man.The LSE and FCa should not permit this insider abuse.But manipulative investors now how to smarm our feeble civil servants.Why should you care? Abicad will bid to take over the company within the next two years.DYOR .Do not believe a word anyone hiding behind behind a Limassol tax shelter.And SRC is a far better managed company in the sector.More DYOR.
And looks like Chairman bought £19m of shares today. Add that to the c.£50m acquired in the first half of the year.
Started: tickhilltim, 3 Oct 2023 18:06
Last post: AmatuerInvestor, 4 Oct 2023 11:19
You're concerned that the board has skin in the game? The opposite to this is normally a major concern to shareholders when directors have no or small holdings in the companies they run
It seems odd to me that a company with only a 15% holding is allowed to have one of its people as non- exec chairman.Surely this is a conflict? How can he act independently when Abicad may have a different agenda to what is in the best interests of the majority of shareholders?
Started: Megan2012, 3 Oct 2023 17:00
Last post: Megan2012, 3 Oct 2023 17:00
It will be interesting what reaction there will be to the decision on HS2
If they cancel the northern section tomorrow as appears to be the prediction companies will need to look at projected sales and outputs unless there is an alternative proposal
I’m guessing if it is cancelled and not replaced with some upgrading of the existing network there will be spare capacity and an effect on aggregate /concrete prices
Started: Dandanman, 3 Oct 2023 14:59
Last post: Ade1234, 3 Oct 2023 15:12
My friend works at one of there asphalt plants and says things are quiet, but i think this is generally the same in other asphalt and concrete plants.
Anyone attend the site visit at Wickwar today and get a sense of how trading is going?
Going from AIM to main market normally means a positive for the share price but very subdued at present. Can’t all be to do with economic activity.
Started: tickhilltim, 22 Sep 2023 09:25
Last post: Megan2012, 28 Sep 2023 10:09
Daz
Frankly no idea
Very quiet here no news no info no nothing
Sure there is better value elsewhere
G l a
Dreadful isn’t it. When exactly is the next interim dividend?
Am I missing something here ? 66p in old money
Performance since leaving aim very poor
What’s going on?
About time we heard something?
Or 20p per share in today's format.
This is a joke now, we’re back to equivalent of 68p pre consolidation, no growth or value at all in years
Started: CityWatcher, 17 Aug 2023 09:54
Last post: dazzag, 18 Aug 2023 11:43
Still cant find August mentioned anywhere, i`m sure it`s usually more later
Whoops ! I meant late this month. AUGUST - hence sooooon !
Just a guess their ex div date is late Sept. I'm going by their previous gen that's on HL.
Yea seen this bit but the date you gave where is that?
From the interim results RNS 26th July
Dividend
"The Board regularly reviews capital allocation scenarios, balancing capital investment and M&A with reducing debt and returning cash to shareholders, while prioritising profitable growth and ROIC. As a consequence of our strong financial performance, the Board intend to pay an interim dividend of 4.0p (H1 2022 restated: 3.5p), an increase of 14% and significantly ahead of earnings. This reflects our confidence in the prospects of the Group and is in keeping with our progressive dividend policy. The dividend timetable will be published in due course."
The sp is taking a lot of settling down since the change as it's up and down like the proverbial nether garments of a lady of ill repute, for no apparent reason.
Or does anybody know why?
Last post: AmatuerInvestor, 26 Jul 2023 12:39
The 1.4p final dividend needs to be adjusted for the 1 - 5 share consolidation. 1.4p final divi equates to 7p, plus the 4p interim gives 11p. At a current price of £3.54 thats a 3.1% yield.
This is where I'm a bit confused, as, the div has increased from 3.5p to 4p, however the SP is now 356, not the usual 70-80p range...
So, we usually work out the div % by dividing the dividend (4p) by the share price (356.6) = 0.011 x 100 = 1.12%
So 1.12% is the interim div yield
So in total for the year, including the final div, would be 5.4p/356.5 x100 = 1.5%
Not great really.. Please correct me if I'm missing something.
What’s the yield in percent now?
Nice div increase and likely inclusion in FT 250 may attract some positives against caution of UK house building sector prospects.
Last post: Dartron, 11 Jul 2023 22:07
Raised it 1p in old money to 76p. Think it is a re-iteration.
Yeah it will Be interesting to see how much it rises
Good to see Barclays raise Breedon to 3.80, surprised at the volatility on here now it’s out of Aim, you wouldn’t really know with the ups and downs