Breedon Group plc: history, ownership, mission, how it works & makes money

A Brief History of Breedon Group plc

Breedon Group plc, established in 2008, has grown to become one of the largest construction materials companies in the UK. The company focuses on aggregates, ready-mixed concrete, and asphalt production. Its expansion has been marked by strategic acquisitions and organic growth, allowing it to enhance its market presence.

In 2010, Breedon acquired the assets of Hope Construction Materials, which significantly broadened its operational footprint. By 2015, the company had acquired several other businesses including the East Midlands division of Aggregate Industries UK, allowing for further expansion across England and Wales.

As of June 2021, Breedon Group plc reported revenues of £420.7 million, an increase from £350.9 million in 2020. The company’s operating profit for 2021 reached £67.7 million, compared to £44.9 million the previous year. This growth was attributed to increased demand for construction materials spurred by infrastructure projects and housing developments.

Breedon Group plc has also made strides in sustainability, focusing on reducing carbon emissions in its production processes. The company announced a commitment to achieving net-zero carbon emissions by 2050. In 2021, Breedon’s carbon footprint was reported at approximately 0.3 tonnes of CO2 per tonne of product, representing a 10% reduction from 2020 levels.

In July 2022, Breedon announced its intention to acquire the assets of the Breedon Cement Division from the independent Scotland-based company, which will expand its cement production capacity and align with its sustainability goals.

As of 2023, the company operates approximately 60 production sites across the UK and employs around 2,800 people. Breedon Group's shares are listed on the London Stock Exchange under the ticker symbol BREE.L. The market capitalization as of October 2023 is estimated at around £1.1 billion.

Furthermore, Breedon has shown resilience against market fluctuations, with a positive forecast for 2023 backed by ongoing infrastructure spending by the UK government. Analysts project a revenue growth rate of approximately 6% annually over the next five years, fueled by strong demand in the construction sector.

A Who Owns Breedon Group plc

Breedon Group plc, a leading construction materials group in the UK and Ireland, operates primarily in the aggregates, asphalt, and ready-mixed concrete sectors. The ownership structure of Breedon Group is critical for understanding its governance and strategic direction.

As of the latest available data, Breedon Group has a diverse ownership base comprising institutional investors, retail shareholders, and company insiders. The following table outlines the significant shareholders and their respective ownership stakes:

As illustrated in the table, retail shareholders hold a substantial portion of the company's shares, amounting to 63.0% of the total ownership. This reflects a significant level of public interest in Breedon Group.

In institutional ownership, BlackRock, Inc. stands out as the largest shareholder, owning 6.5%, followed by Aviva Investors with 5.0%. This diverse institutional backing provides Breedon Group with stability and potentially influential governance. The presence of various investment funds indicates confidence in the company's growth prospects.

Additionally, the insider ownership, at 2.1%, suggests that executives and board members possess a vested interest in the company's performance, aligning their incentives with those of shareholders.

In terms of market capitalization, as of October 2023, Breedon Group plc is valued at approximately £1.2 billion. The company's strong financial performance, backed by its well-diversified portfolio in the construction materials sector, enhances its attractiveness to a wide array of investors.

The recent trading volume has been robust, with an average of around 1.5 million shares traded daily over the past month. The stock price as of late September 2023 was approximately £1.15 per share, reflecting an increase of 6.7% year-to-date.

In summary, the ownership structure of Breedon Group plc is characterized by a healthy mix of institutional and retail investors, positioning the company favorably for sustained growth and development in the competitive construction materials market.

Breedon Group plc Mission Statement

Breedon Group plc, a leading construction materials group in the UK, aims to provide sustainable solutions in the construction sector. Their mission emphasizes a commitment to quality, service, and sustainability. The company's strategic objective is to remain a responsible partner in the communities it serves, ensuring efficiency in operations while enhancing customer value.

The company’s mission statement articulates its goals to deliver consistent growth and profitability through innovation and operational excellence. The focus on sustainability and minimizing environmental impact is a cornerstone of their business model.

Financial Overview

For the year ended December 31, 2022, Breedon Group reported the following key financial figures:

Key Performance Indicators (KPIs)

Breedon Group closely monitors several performance indicators to align with its mission statement. These KPIs help assess operational efficiency, customer satisfaction, and sustainability efforts. Below are some notable metrics for 2022:

Commitment to Sustainability

Breedon Group is focused on sustainable practices within its operations. Recent initiatives have led to significant improvements in environmental performance. As of 2022, the company achieved:

• Over 90% of operational waste recycled.
• Reduction of carbon emissions per ton of product by 12% year-on-year.
• Increased use of recycled materials in production to 30%.

Community Engagement

As part of its mission, Breedon Group also prioritizes community engagement. In 2022, the company invested approximately £1.5 million in local community projects. This commitment underscores its role not just as a business, but as a community partner.

Between its financial growth, focus on sustainability, and community engagement, Breedon Group's mission statement reflects its holistic approach to business in the construction materials sector, aiming for a balance between profitability and social responsibility.

How Breedon Group plc Works

Breedon Group plc operates in the construction materials sector, primarily involved in the production and supply of a range of construction materials including aggregates, asphalt, concrete, and precast products. The company is particularly prominent in the UK and Ireland and has expanded its operations significantly through strategic acquisitions and organic growth.

As of December 2022, Breedon reported revenue of approximately £1.2 billion, marking a significant growth from the previous year's figure of £1 billion. The operating profit for 2022 was around £141 million, which indicates an operating margin of about 11.8%.

The company’s strategic operational segments are primarily categorized as follows:

• Aggregates
• Asphalt
• Concrete
• Precast Products
• Other Construction Materials

In the 2022 fiscal year, Breedon Group's segment performance was as follows:

Breedon’s operational efficiency can be further analyzed through its operational metrics. In 2022, the company sold approximately 20 million tonnes of aggregates and produced nearly 2 million tonnes of asphalt. The concrete production stood at around 1 million cubic meters.

The company’s investments in sustainability have also been pivotal in its operational strategy. Breedon aims to reduce its carbon emissions by 20% by 2025, aligning with broader industry goals for sustainable construction practices.

As of Q2 2023, Breedon Group plc's stock was trading around £0.85 per share, with a market capitalization of roughly £550 million. The company's dividend yield is approximately 2.5%, reflecting its commitment to returning value to shareholders.

Historically, Breedon has maintained a strong balance sheet, with net debt reported at approximately £150 million as of the end of 2022. This translates to a net debt to EBITDA ratio of less than 1.1x, indicating a robust liquidity position.

Additionally, the company has been actively acquiring smaller firms to consolidate its market presence. In 2021, Breedon completed the acquisition of 3 businesses, further enhancing its portfolio and geographic outreach.

In summary, Breedon Group plc’s business model is characterized by diversified product offerings, strategic acquisitions, and a significant focus on sustainability, all contributing to its position as a leading player in the construction materials industry in the UK and Ireland.

How Breedon Group plc Makes Money

Breedon Group plc operates primarily in the construction materials sector within the UK and Ireland. The company generates revenue through various segments, primarily focusing on aggregates, ready-mixed concrete, and asphalt production. Its diverse portfolio enables it to cater to both residential and commercial projects.

In the fiscal year 2022, Breedon Group reported a revenue of £1.1 billion, reflecting an increase from £897 million in 2021. The company achieved an EBITDA of £227 million, which demonstrates a solid margin at around 20.6%.

The primary revenue streams for Breedon Group include:

• Aggregates: This segment includes the production and sale of crushed stone, sand, and gravel. In 2022, aggregates accounted for approximately 52% of the total revenue.
• Ready-mixed Concrete: Contributing around 30% to revenue, this segment serves various construction and infrastructure projects.
• Asphalt: Making up about 18% of revenue, Breedon's asphalt production is crucial for road construction and maintenance.

To illustrate the financial breakdown, the following table highlights the revenue contributions by segment:

In terms of geographical diversification, Breedon Group operates multiple sites across the UK and Ireland, which allows it to tap into local construction markets effectively. This strategic positioning has been beneficial; for instance, during 2022, the East Midlands region represented a notable 28% of total sales.

Additionally, Breedon Group has embraced sustainability, investing in environmentally friendly practices, which not only enhances its brand image but also opens doors to public and private sector contracts focused on sustainable development. The company’s commitment to sustainability is reflected in its investments in technology for better resource management and reduced carbon emissions.

In terms of financial health, Breedon Group maintains a robust balance sheet with net debt of approximately £120 million as of the end of 2022, translating to a net debt-to-EBITDA ratio of 0.53x. This indicates a strong capacity to service its debt obligations while continuing to invest in growth opportunities.

Overall, Breedon Group's multifaceted approach to revenue generation, robust financial metrics, and strategic investments in sustainability positions it well within the construction materials sector, ensuring continued profitability in the coming years.