Adelaide Brighton (ASX:ABC)
Adelaide Brighton is one of Australia’s leading integrated construction materials and lime producers.
The Company supplies a range of products to the building, construction, infrastructure, and mineral processing markets throughout the country.
Adelaide Brighton's principal activities include the production, importation, distribution, and marketing of clinker, cement, industrial lime, premixed concrete, construction aggregates and concrete products.
Established in 1882, Adelaide Brighton is now an S&P/ASX100 company. The Company has approximately 1,500 employees and operations in every state and territory in Australia.
The Company operates the following divisions:
% of Revenue
% of Profit (before Int. & Tax)
Cement, Lime, Concrete and Aggregates
Key strategies include:
Adelaide Brighton’s highly focused strategy
Consistent long term strategy delivering returns
Cost reduction and operational improvement across the business
- Best practice operational performance
- Import strategy to maximise asset utilisation
- Focus on energy usage and procurement
Grow the lime business to supply the resources sector
- Unique resource and cost position
- Long term customer contracts and growth
- Continuous improvement to maintain cost leadership
Focused and relevant vertical integration
- Operational performance to realise the long-term value
- Targeting strategic aggregates positions
- Strong emphasis on shareholder value creation
- In 2018, Adelaide Brighton expects strong demand for construction materials, improved pricing and further efficiency improvements. Sales volumes of cement and clinker are anticipated to be higher, with stable demand in Western Australia and the Northern Territory and improving demand in South Australia and the east coast.
- Lime sales volumes are expected to be slightly lower in the non-alumina sector, although prices are anticipated to improve under contractual arrangements.
- Its joint venture operations in Australia are anticipated to continue to benefit from stronger demand and higher prices on the east coast.
- Its costs are expected to improve with further savings from the Angaston plant cement rationalisation and rolling operational improvement program.
- Import costs are likely to be $3 million higher in 2018, with increased materials costs offset by favorable foreign currency outcomes, and energy costs are expected to raise $6 million in 2018.
- Estimated proceeds from the sale of land in the next 10 years could realise in excess of $100 million, however, due to project timing, no significant land sales are expected until 2019.
- Adelaide Brighton aims to optimise shareholder returns by maintaining an efficient balance sheet while retaining the flexibility to fund long-term growth opportunities. Prudent capital management will remain an important part of this approach.
Established in 1882, Adelaide Brighton is now an S&P/ASX 100 company
William Shearing and William Lewis erected an experimental Cement plant
Over the following decade, The S.A. Portland Cement Company flourished, growing in size and in stature
As a result of this direct competition, the S.A. Portland Cement Company took steps to increase production by refitting much of its plant and increasing the number of employees to 104
S.A. Portland Cement Company had only made two types of cement, ‘normal’ and ‘high early strength’, the later having been introduced in 1929
3 weeks of intense movement on the Stock Exchange, ‘Adelaide’ announced that it had secured more than 75% of the ‘Brighton’ shares
Adelaide Brighton Ltd has agreed to acquire 55% of the concrete masonry products company C&M Brick Pty Ltd (C&M) and 100% of the Rocla Pavers and Masonry (RPM) business of Rocla Pty Ltd
Acquired the concrete products company Hanson Building Products Pty Ltd
Acquired at 30% Stake in AALBORG Portland Malaysia SDN. BHD
Adelaide Brighton has entered into a contract with major alumina producer for the continued long-term supply of 100% of their lime requirement in Western Australia
Renewal of Major South Australian Cement contract
Acquired Direct Mix Concrete and Southern Quarries (“DMC”)
Completed downstream acquisition in South Australia and Queensland and renewal of long-term cement supply agreement
Adelaide Brighton announced a potential change to its South Australian cement supply arrangements
Adelaide Brighton advised that it has executed an agreement securing ongoing supply to a major cement customer in Western Australia for a term of three years until 31 December 2017
Adelaide Brighton concluded two land sales
Acquisition of Central Pre-Mix Concrete and Quarry Completed
Adelaide Brighton strengthens energy portfolio
Adelaide Brighton signs major SA cement contract
Board of Directors
Leslie Hosking – Chairman(Retired)
Term of office: Non-executive Director since June 2003. Chairman since May 2012.
Experience: Extensive experience in commercial and financial matters with 16 years as Chief Executive of the Sydney Futures Exchange and former Chief Executive Officer of Axiss Australia and Managing Director of National Electricity Market Management Company (NEMMCO).
Current directorships/other interests: Director, AGL energy Limited (appointed November 2008).
Mr Hosking has retired from the Adelaide Brighton Board.
Martin Brydon - Managing Director and CEO (Will Retire)
MBA, FAICD, FAIM, Dip Elect Eng, Dip Elron Eng
Term of office: Director since November 2015.
Experience: More than 30 years’ experience in the construction materials industry ranging from electrical engineering, operational and general management, sales and marketing and strategy and business development. Appointed Chief Executive Officer of Adelaide Brighton Ltd in May 2014.
Committee membership: Attends Board committee meetings.
Current directorships/other interests: Director, Sunstate Cement Ltd and Cement Industry Federation.
Martin Brydon, has informed the Board of his intention to retire. The company will be conducting a wide-ranging executive search, both internally and externally, and the Board intends to appoint an executive search firm to support this process.
Raymond Barro - Director
BBus, CPA, FGIA, FCIS
Term of office: Director since August 2008
Experience: Over 24 years’ experience in the premixed concrete and construction materials industry.
Committee membership: Member, Safety, Health and Environment Committee.
Current directorships/other interests: Managing Director of Barro Group Pty Ltd.
Graeme Pettigrew - Director (Retired)
FIPA, FAIM, FAICD
Term of office: Non-executive Director since August 2004.
Experience: Extensive experience in the building materials industry and former Chief Executive Officer of CSR Building Products. Broad management experience gained in South East Asia and the United Kingdom through former positions as Managing Director of Chubb Australia Limited and Wormald Security Australia Pty Ltd.
Committee membership: Chairman, Audit, Risk and Compliance Committee, Member, Nomination, Remuneration and Governance Committee and Safety, Health and Environment Committee.
Current directorships/other interests: Director, Capral Ltd (appointed June 2010).
Adelaide Brighton Limited non-executive Director, Mr Graeme Pettigrew, retired from the Board following the conclusion of the Company’s Annual General Meeting, after almost 14 years of service.
Ken Scott-Mackenzie - Director
BE (Mining), Dip Law
Term of office: Non-executive Director since July 2010.
Experience: Mining Engineer with over 40 years’ experience in infrastructure, construction and mining services gained in Australia and Africa, as well as extensive experience in financial, legal and commercial aspects of projects.
Committee membership: Chairman, Safety, Health and Environment Committee and Member, Nomination, Remuneration and Governance Committee.
Arlene Tansey - Director
FAICD, MBA, JD, BBA
Term of office: Non-executive Director since April 2011.
Experience: Extensive experience as a senior executive in business and the financial services industry gained in Australia and the United States with a background in investment banking and securities law.
Committee membership: Chairman, Nomination, Remuneration and Governance Committee and Member, Audit, Risk and Compliance Committee.
Current directorships/other interests: Director, Primary Health Care (appointed August 2012) and Aristocrat Leisure Limited (appointed July 2016).
Zlatko Todorcevski - Chairman
BCom (Accounting), MBA
Term of office: Appointed a non-executive Director on 22 March 2017.
Experience: Experienced global executive with more than 30 years experience in the oil and gas, logistics and manufacturing sectors gained in Australia and overseas with a background in finance, strategy and planning.
Committee membership: Member, Audit, Risk and Compliance Committee and Nomination, Remuneration and Governance Committee.
Current directorships/other interests: Appointed a non-executive Director, The Star Entertainment Group Limited - subject to casino regulatory approvals (October 2017).
Adelaide Brighton Limited confirms that Zlatko Todorcevski has succeeded Leslie Hosking as Chairman. Mr Todorcevski has been a Non-Executive Director of the Adelaide Brighton Board since March 2017 and was named Chairman Elect in February 2018, allowing for a three-month transition period.
Vanessa Guthrie - Director
Hon DSc, PhD, BSc (Hons)
Term of office: Appointed a non-executive Director on 8 February 2018.
Experience: Extensive experience in the mining and resources industry across a variety of roles including operations, environment, community, indigenous affairs, corporate development and sustainability.
Current directorships/other interests: Chair of the Minerals Council of Australia and a Director of Santos Limited (appointed July 2017), Vimy Resources Limited (appointed October 2017) and the Australian Broadcasting Corporation.
Geoffrey Tarrant - Director
Term of office: Appointed a non-executive Director on 8 February 2018.
Experience: Extensive experience in the finance industry with experience gained in Australia, the United Kingdom and Asia.
Current directorships/other interests: Chairman of Zuuse Limited.
Martin Brydon - Managing Director and CEO
Michael Kelly - Chief Financial Officer
Michael has strong credentials in the building and construction products industry gained in Australia and internationally. He has a background in finance, strategy and business development. Michael joined Adelaide Brighton in August 2006 and has been in the role of Chief Financial Officer since February 2010.
George Agriogiannis - Executive General Manager, Concrete and Aggregates
George joined Adelaide Brighton in March 2011 as Executive General Manager for Concrete and Aggregates. He has 20 years’ experience in the concrete and aggregates industry gained through national exposure in general management.
Andrew Dell - Executive General Manager, Concrete Products
Andrew was appointed Executive General Manager for Concrete Products in May 2015. He has extensive experience in the building products industry and has general management and logistics experience. Andrew has been with Adelaide Brighton since 2008 in a number of senior management positions.
Brad Lemmon - Executive General Manager, Cement and Lime
Brad has operational responsibility for Adelaide Brighton's national cement and lime operations. He has significant experience in construction materials and mining services and over his 21 year career with Adelaide Brighton has held a number of senior positions across sales and marketing, business development, operations, transport and logistics and international business.
Michael Miller - Executive General Manager, Marketing and International Trade
Michael was appointed to the position of Executive General Manager, Marketing and International Trade in May 2016. Prior to this Michael had operational responsibility for Adelaide Brighton's cement and lime operations in South Australia and New South Wales. He is a sales and marketing professional with complementary operations, international trade and general management experience.
Marcus Clayton - General Counsel and Company Secretary
Marcus joined Adelaide Brighton in February 2003 as General Counsel and Company Secretary. He is a legal practitioner admitted in South Australia with 27 years’ experience.
Dimity Smith - Executive General Manager, Human Resources and Health Safety and Environment
Dimity joined Adelaide Brighton in January 2016 as Executive General Manager for Human Resources and Health, Safety, and Environment. She has broad experience in human resource and general management across a range of industries.