Eastern Eye (UK)
Breedon eyes main market
CONSTRUCTION materials supplier Breedon Group Plc said it intends to move its ordinary shares to the main market of the London Stock Exchange (LSE) from the AIM to reflect its “growth ambitions”.
“Main market now offers the appropriate listing for a group of our scale and heritage,” the group, which has operations in Britain and Ireland, said in a filing to the stock exchange.
It expects its admission to the premium listing segment during the second quarter of the year. Its directors also intend to set up a new holding company incorporated in England and undertake a share consolidation.
Breedon’s non-executive chairman Amit Bhatia said, “For over a decade, the AIM market provided us with access to diverse and engaged investors, within a supportive community.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,” he said.
Breedon shares closed at 75.6p on Tuesday (14) up 3.14 per cent over the previous day.
Although the stock remained largely flat on the bourse over the past five years, it gave about 50 per cent recent return from its October low of around 50p.
The group reported revenues of £1.39 billion for 2022, up 13 per cent from £1.23 bn a year ago, driven by its dynamic pricing strategy which partially offset the volume reduction.
Breedon, which holds one billion tonnes of mineral reserves, has, however, warned that the UK’s economic backdrop remains uncertain, particularly in the residential housebuilding sector.