Breedon seeking listing on LSE main market
Company announces plans to trade on main market and reports record results for 2022
BREEDON Group plc have today announced their intention to move Breedon’s ordinary shares to the premium listing segment of the Official List and to trading on the main market of the London Stock Exchange (LSE), to better reflect the Group’s scale, maturity and growth ambitions.
In 2010, when the Breedon assets were first acquired, the company owned around 180 million tonnes of mineral reserves and resources and operated 29 quarries in Great Britain. Today Breedon own one billion tonnes of mineral reserves and resources and operate more than 300 sites across Great Britain and Ireland, generating nearly £1.4 billion in revenue and £235 million in underlying EBITDA, and providing employment and opportunity for 3,700 colleagues.
As an established business, with a track record for growth and cash generation, robust corporate governance and ambitions for further expansion, the directors believe the main market now offers the appropriate listing for a group of this scale and heritage, and therefore intend to seek admission to the premium segment of the Official List in the coming months.
The directors believe that admission would further enhance Breedon’s corporate profile and recognition, as well as extending the opportunity to invest in the Group to index tracker funds and a broader group of international institutional shareholders.
Subject to the necessary conditions and regulatory approvals being met, admission is expected to occur during the second quarter of this year, after which the company’s shares will no longer be traded on AIM (Alternative Investment Market). Breedon say they do not intend to raise funds in connection with admission.
As part of admission, the directors intend to establish a new holding company incorporated in England (New Breedon) and undertake a share consolidation to reduce the absolute number of shares in issue. A general meeting of the company will be called to approve these actions in due course.
Amit Bhatia (pictured), non-executive chairman of Breedon, commented: ‘Being a member of AIM has served us well. For over a decade the AIM market provided us with access to diverse and engaged investors, within a supportive community that understands the needs of entrepreneurial businesses such as Breedon and we thank them wholeheartedly for their support.
‘As an established business, with a track record for growth and value creation, we believe the main market now offers the appropriate listing for a company of our scale and heritage and, subject to the required approvals, look forward to our future as a member of the Official List.’
Meanwhile, Breedon have today reported another record year for the 12 months ended 31 December 2022. Revenue for the year increased by 13% to £1,396.3 million, compared with 2021 (£1,232.5 million), including a contribution of £35.6 million from the three strategic bolt-on acquisitions which completed during the second half of the year.
The company also delivered record earnings with Group operating profit of £144.5 million (2021: £124.5 million), whilst underlying EBIT of £155.0 million was up 16% at £21.4 million (2021: £133.6 million), with each division growing earnings compared with 2021. Pre-tax profit was up 19% at £135.8 million (2021: 114.3 million).
Underlying EBIT margin strengthened to 11.1% ahead of the 10.8% reported in 2021, representing further progress towards Breedon’s medium-term ambition to generate an underlying EBIT margin of between 12% and 15%.
