Last week the UK’s largest independent aggregates company Breedon Aggregates reported a solid set of interim figures. The management of this medium sized AIM company were upbeat about future prospects for infrastructure spending and stated they are confident of meeting full year market expectations.

This, combined with the fact that the company has been positioning itself to benefit from any pick-up in the economy, makes it an appropriate candidate for share of the week, Forrest said.

“As most drivers will be only too aware spending on road repairs has hardly been top of the agenda for hard-pressed local councils. In fact infrastructure spend overall has been sluggish, despite politicians recognising the part this could play in any economic recovery. Breedon provides various aggregates to the construction and building industry and would be a direct beneficiary of increased infrastructure spending, which the group is expecting to grow strongly through to 2018.”

Forrest added that its acquisition of Hope Construction last year for £336m has also significantly increased the size of the group and “gives it a presence in the cement market”, along with a further 160 operational sites.

There was more good news for the company in January as it won its largest-ever contract to supply asphalt for an Aberdeen road project. Acquisitions such as this should help expand Breedon’s geographical presence in the UK.

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Forrest said: “Since our September 2013 recommendation the share price has risen by around 140% as a result of continued recovery in the UK construction sector. Investors should appreciate that much of that growth has come from housing. This is a company that is geared to a recovery in infrastructure spend and we therefore recommend Breedon Aggregates as a ‘buy’ for medium- to high-risk investors prepared to take a longer-term view.”