Michelmersh Brick Holdings PLC
LSE:MBH
Michelmersh Brick Holdings PLC
Michelmersh Brick Holdings Plc operates as a holding company, which engages in brick manufacturing and operating a landfill site through its subsidiaries. The company is headquartered in Haywards Heath, West Sussex. The company went IPO on 2004-05-26. The principal activity of the Company is the management and administration of its subsidiary companies. The firm's segments include Building materials and Landfill. The firm's Building materials segment is engaged in the manufacture of bricks, tiles and building products principally facing bricks and clay paviors. The firm owns seven brands, which include Blockleys, Carlton, Charnwood, Freshfield Lane, Michelmersh, Floren and Hathern Terra Cotta. The firm's Landfill segment is engaged in landfill operations, through New Acres Limited, which seeks to develop landfill and development opportunities on ancillary land assets.
Michelmersh Brick Holdings Plc operates as a holding company, which engages in brick manufacturing and operating a landfill site through its subsidiaries. The company is headquartered in Haywards Heath, West Sussex. The company went IPO on 2004-05-26. The principal activity of the Company is the management and administration of its subsidiary companies. The firm's segments include Building materials and Landfill. The firm's Building materials segment is engaged in the manufacture of bricks, tiles and building products principally facing bricks and clay paviors. The firm owns seven brands, which include Blockleys, Carlton, Charnwood, Freshfield Lane, Michelmersh, Floren and Hathern Terra Cotta. The firm's Landfill segment is engaged in landfill operations, through New Acres Limited, which seeks to develop landfill and development opportunities on ancillary land assets.
Resilient performance: Michelmersh delivered a steady first half despite the brick market staying 25% below 2022 peaks, with order intake running ahead of production.
Revenue growth: Revenue edged up 1.1% year-on-year to £35.8 million, driven by a 3% increase in UK dispatch volumes.
Margin pressure: Gross margin declined from 36.2% to 33.6%, impacted by lower pricing, a challenging European market, and operational delays at the Carlton facility.
Dividend & buybacks: The Board declared a 1.6p interim dividend (in line with last year) and continues its share buyback program, showing confidence in shareholder returns.
Cost management: Energy costs remain stable due to effective hedging, but labor costs are rising due to wage inflation and cost-of-living adjustments.
Outlook cautious: Guidance for FY24 is maintained, with a return to growth expected in FY26. The market remains highly competitive, but housing fundamentals are supportive over the medium term.
Leadership changes: Ryan Mahoney stepped up as CEO and Rachel Warren joined as CFO, with focus on operational stability and growth.
Inventory & capacity: Factory capacity has not yet returned to potential due to planned upgrades and temporary closures, but stock is being managed closely to meet future demand.
