Breedon Share Price (BREE)

Thanks Londoner 7 - as always a logical, metered opinion, and the type I appreciate. I too thought the sale of some of PT's holding was well managed, and there was the undertaking to buy more at the same price - to me, his creates a "put" in the market place and a bench-mark price. Woodford came out of the blue, but it is encouraging to see a slight recovery over 60p - so much so, that I topped up at 60p! Thanks again L7, and GLA.

Nice bounce back for the last couple days , after founding a floor around 60p, ahead of results on the 25th July

chart
http://uk.advfn.com/p.php?pid=staticchart&s=L%5EBREE&width=700&height=350&p=1&t=1&dm=2&vol=0&cb=

skippy999, I understand your concerns about Peter Tom. No doubt he has been a big force in the development of Breedon and until two years ago Breedon had been a great contributor to my portfolio. What's happened since to cause the SP fall from grace? Primarily, I think the issue has been costs - the big recovery in oil impacting Bitumen pricing and carbon pricing impacting cement costs, particularly last year. It was only the acquisition of Lagan last year that kept earnings per share in growth. I saw those cost impacts too late to react but I've been watching since, and both have stabilised to a more manageable level. I calculated that in 2018 Bitumen costs impacted EBIT by £8.3M and cement costs hit Breedon to the tune of £2.4m. The impact on Lagan cement could have been another £1.5m. That a total hit of £12.2m on the final EBIT number of £103.5m - quite an impact. The unknown is to how much of the 10% revenue growth reported for the first 3 months is pricing rather than volume. We'll know more later this month.

Back to PT. He's still mates with the current crew so I'm sure he'll be asked for an opinion now and again. That said, I think the big M&M and capital decisions have been taken for the medium term. so focus now is on squeezing the existing assets. With over £100m of cash being generated each year I suspect dividends may be back on the agenda unless theirs another acquisition soon, and I suspect that would at most be a £30m infill.

I was encouraged by the new chairman's wiliness to take PT's share offering at 72p. Unfortunately, liquidity was overtaken by the Woodford woes. I'm pleased to see from today's RNS that another chunk of that overhang has been cleared.

I sold out my holding here. It was going nowhere and Woodford had a load. Glad I did. Not tempted to get back in even at this level..

Agreed. Brexit has really had an impact and dragging onto another inevitable fiasco in Oct certainly won't help!