Member Info for dyche

Puzzled at what seems to be a sea of red trades for IPE this week when comparable fixed interest type ITs aren't heading south. Have I missed something again :(

Thanks GK. It's been a pleasure reading your stuff over the years. I first put money into this er goldmine six years ago and if the AngloAm deal goes through I'll lose plenty. But hey it's only money.

Happy New Year, punters! RMC/Rugby was an industry carthorse before the Mexicans took it over. Their expectation that changing the stable would improve the nag hasn't worked, demonstrably. Breedon's BoD has no doubt realised that CEMEX UK's many idle assets will need to be put to harness or flogged off before the interesting potential of this deal can be fully realised. But there's an awful lot of muck to be cleaned out! Do we know whether the deal has been unconditionally approved by the 'Competition Commission'?

For the sake of our children and theirs, let's hope many more governments become as 'eco-obsessive' as the German one, Magster.

Thanks bobster!. Same to you and yours.

On a whim I bought into this business in November 2014 and HL tells me my money has grown by 63% since. It's also paid me a modest divi every six months. The business continues to add value although I guess the test will come at Brexit when London may become more of a backwater. Hats off to Jamie Hopkins and his crew for running such a tight, steady and progressive ship.

londoner7, a couple of clarifications to your worthy post, if I may. 'Road fleets' comprise these days almost exclusively owner-drivers who are paid per trip, so the surfacing contractor carries very few overheads. Surfacing contracting itself only adds value if properly conducted by competent managers backed by smart estimators and judicious cost controllers, hardly a sine qua non of UK asphalting over the years, let me tell you. 'Blacktop' gangs, like lorry drivers, are generally self-employed family outfits although the laying kit they use may be owned by the surfacing contractor. Like drivers and gangs, asphalt suppliers accept very little contract risk and avoid interface with the ultimate client. So you might conclude that 'expanding contract hubs' in a crowded and risky field may not necessarily be to BREE shareholders' benefit !

Well said. I enjoyed The Trooper's contemplations a great deal during this board's eloquent pioneering days. RIP.

For those taking the view that local UK infrastructure spend may languish after brexit, BREE's buying into Ireland can be seen as a sensible insurance policy. Lagan hasn't come cheap, as the eloquent londoner7 points out on this board, but I'm fairly sure there is value to add to this acquisition if vested sectarian interests can be nullified. Yes, Peter Tom must retire some time but he loves a challenge and seems in pretty good nick. I'll be topping up.

Yes cabman you can apply for more than your 'basic entitlement' by asking your online broker for details - in the case of HL, for example, they make your options plain. Once you've applied before (I think) May 7th you're not guaranteed to receive more than your basic whack at the offer price, of course.

Yep, a very small and straightforward ready mix operation run by a couple of middle-aged guys in a niche marketplace. An altogether simpler project than moving into the 'interesting' Northern Irish construction game, in my view.

Construction supply chain members are (and have to be) a pretty phlegmatic lot. Relying on major contractors for your living tends to require patience and a sense of humour while suspending your disbelief at their ineptitude. Heavy materials supply on big turnkey jobs carries little by way of contractual liability, unless you're a complete mug. Breedon isn't run by mugs, unless they've grown soft since I knew a few of 'em. I'm not topping up just yet - the price may have a little further to fall imo.

Surely not the same Mike Pearce promoted to MD by arch-rivals Aggregate Industries eight weeks ago? He'll be a busy lad .....

Yes, welcome to the chill-out room for those weary of the froth and blather of life on UKOG, SOLG and SXX boards.

Their dismal update and resulting 21-month low SP has led to merger mutterings. Can we/should we afford HSS even at today's bargain cap? Or should we just watch them go under?

Well tealo, on the basis of the price going backwards today you may wonder whether your choice of BREE will prove sensible. There's nothing fancy in heavy materials - volumes are huge but margins are paper-thin - but I don't fancy BREE will prove impatient to expand beyond their means. Peter Tom, for one, will remember madcap days when British quarry firms tried to invade the US, mainland Europe and even Saudi Arabia: they beat hasty and costly retreats. So acquisitions can be a way forward, but only with caution. Viable private UK quarries nowadays are very few and far between (planning blocks, high plant capex, short asset life, remoteness etc) so picking off readymix units may not be sexy but can be worthwhile. It's not an industry I'd invest all my pension but BREE is the best player out there and is rewarding the patient punter.

Am I missing something?

Can't seem to find any evidence for this nosedive - can anyone give me the heads-up please?

Your ruminations have clearly impressed the market today, judging by this price hike :)

Not sure you should assume that, sultan. Messrs Tom and Vivian know full well, I dare say, that many concrete and asphalt plants in the UK were built for bragging rights and survive merely as irritants to local competitors, not as viable concerns. Wholesale closure of lame duck units after merger would be a better bet, cutting losses, reducing supply and boosting margins. BREE doesn't need massive capital outlay to prove its business model, imho.