Friday, Mar 11 2016 by

Useful interview with Breedon's CEO available on Youtube

Talks about recent results and also about strategy - which focuses on  "Bolt On acquisitions" as a way of growing the business.

AIUI the industry is populated by a small number of large multinationals plus a swarm of smaller independent players who tend to have some operational niche whether geographical or product specialisation or special bit of turf.

What Breedon plan to do is acquire a number of these smaller players and thereby obtain synergies and economies of scale. 

They have a big transaction going through at present - waiting on regulatory approval but expected to complete mid year. And the CEO said they have a pipeline containing a number of other projects which will be progressed thereafter.

Recent acquisitions have contributed to a significant improvement in margins across the business. I think the margin has improved from 9% last year to 11.9% this year and the target is 15% within a few years.

I like the down-to-earth no-nonsense persona of the CEO.

I also like that the co. has paid a bonus of GBP 500 to each of its 1400 staff in recognition of its good results.

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The author may hold shares in this company. All opinions are his own. You should check any statements that appear factual and seek independent professional advice before making any investment decision.

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Breedon Group plc, formerly Breedon Aggregates Limited, is an independent construction materials company. The Company's operations include a cement plant, two cementitious import terminals, approximately 60 quarries, over 30 asphalt plants, over 200 ready-mixed concrete plants and three concrete products plants. Its segments include Breedon Northern, Breedon Southern and Hope Cement. It supplies a range of cementitious products, crushed rock, sand and gravel, asphalt, ready-mixed concrete and mortar, as well as concrete products and contract surfacing services. Its contract surfacing business comprises road surfacing and maintenance projects, from road networks to car parks, domestic driveways and farm access roads. It produce a range of concrete walling and paving products, blocks and pre-stressed T-beams from its factories in England and Scotland. Its asphalt products are used in various applications, from roads to airport runways, car parks, sport surfaces and domestic driveways. more »

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