DAVY VIEW

With Brexit in the rear-view mirror, it’s going to be an interesting year ahead for Breedon. Government restrictions (Ireland) and poor weather (Scotland) will likely make for a slow start to 2021. However, FY results should confirm a strong rebound in trading through the second half of 2020 with debt levels down materially. That will leave the group well placed to rebuild capex and pursue accretive acquisitions. Comments from the HeidelbergCement CEO are interesting in that regard, suggesting some acquisition potential for Breedon in the UK. Meanwhile, as restrictions ease and the weather improves, we expect infrastructure spending to ramp-up – further supporting the investment case for Breedon.