8th Mar 2023 10:55
(Alliance News) - Breedon Group PLC on Wednesday said it intends to move its listing to the premium segment of the London Main Market from AIM, and reported 2022 results ahead of expectations.
The construction materials firm said it will seek admission "in the coming months" and does not intend to raise funds in connection with change of trading venue.
Breedon expects admission during the second quarter of this year, and said a Main Market listing is more appropriate for it as an established company.
In 2010, Breedon said that when its assets were first acquired, it owned around 180 million tonnes of mineral reserves and resources and operated 29 quarries in Great Britain. It now owns one billion tonnes of mineral reserves and resources and operates over 300 sites across Great Britain & Ireland.
"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 our scale and heritage; accordingly we intend to seek admission to the premium segment of the Official List in the coming months," Breedon said.
As part of admission, the company intends to establish a new holding company incorporated in England and undertake a share consolidation to reduce the absolute number of shares in issue.
Breedon will hold a general meeting to approve these actions in due course.
Separately, the firm reported full-year results ahead of expectations.
Pretax profit was GBP135.8 million in 2022, up 19% from GBP114.3 million in 2021, as revenue rose 13% to GBP1.40 billion from GBP1.23 billion.
Gross profit rose to GBP486.2 million from GBP428.4 million. Earnings per share rose by 43% to 6.65p from 4.64p in 2021.
Breedon lifted its full-year dividend by 31% to 2.1 pence per share from 1.6p the year prior.
Chief Executive Rob Wood said it was "another record year" with each division progressed. "Each division progressed and we made meaningful headway on our growth strategy, expanding organically, acquiring strategically important assets, and moving our sustainability agenda forward," he said.
Wood added that, despite the uncertain economic and geopolitical landscape, 2023 has begun "positively" and that Breedon is in a strong position.
Looking ahead, the company expects 2023 expectations to remain unchanged.
Shares were up 3.9% at 77.30 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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