Following on from the recent success of Breedon Aggregates in increasing profits by almost 50% last year, in addition to the company’s potential acquisition of Hope Construction Materials, it has been announced that the organisation’s Chief Executive, Pat Ward clearly sees continuation in the brand’s success, procuring some 150,000 shares
One to watch this year is Breedon Aggregates as, in line with the resurgence of the UK construction industry, the company has seen a stark increase in group turnover as highlighted in last year’s financial reports. In addition to this, a marked increase in company profits has also been highlighted.
Although in the process of being purchased by Breedon Aggregates, Hope Construction Materials has made the move to continue growing and solidifying its market brand, attempting to secure the future of the company, and potentially lay the foundations for the takeover by Breedon Aggregates. The takeover, which still requites approval
BDC 319 : Aug 2024
Following on from the recent success of Breedon Aggregates in increasing profits by almost 50% last year, in addition to the company’s potential acquisition of Hope Construction Materials, it has been announced that the organisation’s Chief Executive, Pat Ward clearly sees continuation in the brand’s success, procuring some 150,000 shares in the company at a rate of 70p – a deal which is heralded as quite a safe investment given the company’s recent, and predicted success. The move signifies Pat Ward’s first investment made into Breedon Aggregates, which will complement the vast number of shares he has recently been presented with as part of the group’s performance share plan; a total of 709,219 shares being provided to Pat Ward, 531,914 shares to Chairman, Peter Tom, and 425,531 shares provided to Finance Director, Rob Wood. Now, more than ever, certainly seems like a good time to invest into Breedon Aggregates, with predictions seeing the company grow almost twofold should the acquisition of Hope Construction Materials follow through. And while the deal is presently facing concerns as to reduced competition in the mixed-concrete market, it would seem that Breedon Aggregates had already foreseen this and may be prepared to sacrifice a portion of its concrete production capacity to enable the deal to continue. Should the deal continue, it is expected that Breedon Aggregates will become something of a powerhouse in the industry and, while regulation will require the company to downsize somewhat to maintain a level of competitiveness in the wider industry, this will still see Breedon Aggregates maintain a sizeable share in the market for the production of mixed-concrete. Also with Hope Construction Materials only recently launching its very own, branded range of product, the company may very well see the acquisition of a very strong product portfolio from Hope Construction Materials which will only cement the company’s future prosperity in the market for mixed-concrete products.
One to watch this year is Breedon Aggregates as, in line with the resurgence of the UK construction industry, the company has seen a stark increase in group turnover as highlighted in last year’s financial reports. In addition to this, a marked increase in company profits has also been highlighted. Showcasing an 18% increase in revenues for 2015, Breedon Aggregates’ turnover totalled in at a notable £318.5m for 2015, showcasing considerable growth in the present market – a market which, while recovering, is still relatively volatile by nature. In line with the growth, Breedon Aggregates also enjoyed a rise in pre-tax profits for 2015, rising by approximately 46% to a value of £31,3m. The underlying EBITDA for Breedon Aggregates saw an increase up to £54.9m, with its margin increasing up to 17.2% for 2015, effectively meeting the group’s medium term target for EBITDA margin as set all the way back in 2010, thus positioning the company in a relatively strong position for the coming years. The results come as the company is in the final stages of securing its £336m acquisition of leading construction material supplier, Hope Construction Materials, which is hoped to be checked off from a regulatory respective mid-2016. Of course, should the acquisition go as plans, predictions for the group’s future revenue levels could considerably overshadow the success of 2015. With Hope Construction Materials also still releasing new, branded products to the market, this is expected to further strengthen the brand in the coming times, as well as providing even greater access to group turnovers should the deal with Breedon Aggregates go ahead. “We begin an exciting new era in 2016 with the planned acquisition of Hope and we look forward to the future with confidence,” commented Breedon Aggregates’ Executive Chairman, Peter Tom. This, of course, ties in with governmental commitments to investing back into infrastructure and an increase workloads for the entirety of the sector as leading infrastructure projects come into action.
Although in the process of being purchased by Breedon Aggregates, Hope Construction Materials has made the move to continue growing and solidifying its market brand, attempting to secure the future of the company, and potentially lay the foundations for the takeover by Breedon Aggregates. The takeover, which still requites approval from the competition authorities, is predicted to come to fruition over the course of the year, yet, whether through uncertainty of approval or a determination to prove the strength of the brand to Breedon Aggregates, the company is displaying a degree of normality in operation as if planning for the future of the organisation, much like any other. Additionally, Hope Construction Materials is also set to launch a brand new brand of bagged cement, to be transported from the production plant in Derbyshire by rail, through to distribution at the new plant in Dagenham. The products, once distributed, are expected to be available to customers throughout the South of England. The move represent the company’s first time both producing and branding its own cement products for mass distribution – previously the supply of its cement products had been undertaken by third party suppliers. It’s of no real surprise that Hope Construction Materials expects to go ahead with the product launch, despite the takeover talks, due to the stage of the project which has been some around a year and a half in the making. Additionally, a great deal of research has been undertaken so as best to ensure that the product is targeted towards the increasingly-specific requirements of the modern building industry – this undertaken through communication with leading builders and merchants to understand their needs. Hope Construction Materials’ Commercial Director, Gary Brennand explained: “Using this insight we have developed a full package which we believe will redefine the sector.” As such, the new, professional grade cement is expected to be received with much anticipation with the greater construction industry.
