As of late, Breedon Group’s share price has been on something of a rollercoaster ride. After hitting an all-time high in early 2018, the company’s stock took a bit of a dive in the latter half of the year. However, things have started to pick back up again in 2019 and Breedon currently sits at the top of the UK construction materials sector.
So, what’s driving this recent surge in share price? Let’s take a closer look.
The Breedon share price is up today after the company announced its half year results. The building materials firm reported a 6% rise in revenue to £1.1bn, and a 9% increase in underlying profit before tax to £46.5m. This was driven by strong growth in its aggregates business, which offset a weaker performance in asphalt.
Looking ahead, Breedon said it expects full year underlying profit before tax to be marginally ahead of last year’s figure of £84.9m. Chief executive Pat Ward said the company had delivered a “solid” performance in the first half, and was well-positioned for the second half of the year.
shares are up 3% on the news.
Rmg Share Price
The RMG share price has been on a roller coaster ride over the past year. After hitting an all-time high in December of 2016, the stock price plummeted in early 2017. But, since bottoming out in March, the stock has recovered somewhat and is now trading around $11 per share.
What’s behind this volatile share price? RMG is a publicly traded company that owns and operates a number of popular online gaming sites. The company has come under fire recently for some of its business practices, which have led to calls for regulation of the online gaming industry.
While it’s still too early to tell how this will all play out, it’s clear that RMG’s share price will continue to be volatile in the near term.
Credit: www.sharecast.com
Are Breedon Shares a Good Buy?
Shares of Breedon Group PLC (LON: BREE) have been on a tear in recent months, and many investors are wondering if the stock is still a good buy at current levels.
Here’s a look at the case for and against buying Breedon shares at the moment.
The case for buying Breedon shares
Breedon is one of the largest suppliers of construction materials in the UK, with a strong presence in both England and Scotland. The company has been benefiting from robust demand for its products amid an ongoing construction boom in the UK. In its most recent trading update, Breedon reported that revenues soared 23% year-over-year in the first half of 2017.
Adjusted operating profits also rose sharply, by 37%.
Breedon’s share price has more than doubled over the past 12 months as investors have bid up the stock in anticipation of continued strong growth. And there’s good reason to believe that this growth will continue.
Construction activity in the UK is expected to remain robust in the coming years as Britain continues to recover from its economic downturn. Moreover, Brexit uncertainty doesn’t appear to be having any meaningful impact on construction activity levels so far. So it looks like Breedon is well positioned to keep growing at a healthy clip for some time to come.
At current levels, Breedon shares trade at around 22 times 2018 earnings estimates. That might seem like a high multiple, but it actually isn’t all that expensive given the company’s strong growth prospects. And with a dividend yield of 2%, Breedon shares offer decent income potential as well.
Does Breedon Pay a Dividend?
Yes, Breedon does pay a dividend. The company has a long history of paying dividends and has increased its dividend payments for the last 10 years. The current dividend yield is around 2%.
Who Owns the Breedon Group?
The Breedon Group is a British construction materials company. It is the largest supplier of aggregates in the United Kingdom and has operations in Great Britain and Ireland.
The company was founded in 2006 by current CEO, Pat Ward, and is headquartered in Derby, England.
The company has grown rapidly through a series of acquisitions, most notably the purchase of Tarmac’s European business in 2013.
Today, the Breedon Group employs over 2,500 people and has an annual turnover of £700 million. The company is privately owned by its management team and funds itself through equity and debt markets.
Breedon in a great position to continue on successful path
Conclusion
The Breedon Group plc is a leading construction materials group in the United Kingdom and Ireland. With a strong focus on cement, concrete and aggregates, the company operates around 60 quarries, 27 asphalt plants, 170 ready-mixed concrete plants and three concrete block plants. The company employs over 2,000 people.
The Breedon Group was formed through a reverse takeover of Tarmac plc by Anglo American plc in 2013. The company was listed on the London Stock Exchange in 2014 with a market capitalisation of £1 billion (US$1.5 billion). In 2015, the company acquired Hope Construction Materials from Lafarge for £335 million (US$500 million).
In 2018, Breedon reported revenues of £844 million (US$1.1 billion) and an operating profit of £93 million (US$120 million).
