Stellar growth for Big River on stock exchange
ALMOST seven months after floating on the Australian Stock Exchange, Clarence Valley-based company Big River Group share price is returning investors close to 50 per cent.
The initial share price of $1.47 when it listed in May has settled at $2.26 after peaking at $2.32 earlier this month.
The share price follows a stellar period of growth for the company, which has acquired four timber businesses in South Australia, Queensland and Australian Capital Territory.
The acquisitions reflect Big River's drive to better supply the trade segment of the building and construction industry nationwide.
These latest acquisitions have increased the company's sales and distribution outlets to 13 locations in the major population centres of Australia.
In March 2017 Big River acquired Adelaide Timber & Building Supplies (ATBS), a diverse building products supplier to the SA market.
In April, Sabdia Mitre 10 in Brisbane was acquired, followed by Midcoast Timbers on the Gold Coast in September, and finally Ern Smith Timber and Hardware in Hume, ACT, due to complete in December.
"These new businesses increase the group's exposure to detached housing and the alteration and additions market, to better balance activities in other sectors," Big River managing director Jim Bindon said.
"They were key purchases within our continued diversification strategy across states and construction segments."
The acquisition of ATBS allowed Big River to launch MaxiWall, a new, cost-competitive autoclaved aerated concrete product, nationally.
Previously the MaxiWall brand was only available in South Australia, where it enjoyed substantial growth and success over several years.
"Solid outlooks in the detached housing and commercial construction markets and a sizeable increase in the civil and infrastructure pipeline, together with Big River's geographic diversity, means we are poised to continue this success in 2018," Mr Bindon said.
The acquisitions come on top of a successful listing on the ASX under the company's parent name, Big River Industries (BRI) in May.
"This year has also seen excellent growth in the premium value-added plywood products manufactured by the company, which were predominantly used in the civil and commercial construction sectors," Mr Bindon said.
"With an operating history of over 100 years, Big River Group has established itself as one of Australia's leading manufacturers and distributors of timber and building products.
"This ongoing achievement is a clear reflection of our longstanding presence in the marketplace, strong service culture and technical expertise."