Michelmersh Brick Holdings was established in November 1997 to enable the acquisition of Michelmersh Brick & Tile and Dunton Brothers.

Dunton makes traditional bricks at Ley Hill, Buckinghamshire and Michelmersh Brick & Tile is a long established business manufacturing premium quality bricks and tiles operating from a site near Romsey, Hampshire.

In February 1999, the business of Charnwood was acquired in Leicestershire. Charnwood has an excellent reputation for high quality handmade bricks for building and restoration projects. Charnwood Bricks were recently used in the restoration of St Pancras Station.

In February 2000, the Company acquired Blockleys in Telford, the leading producer of specification wire cut bricks and clay pavers. The 100 acre site also includes a quarry and landfill operation and some 80 acres of land on which a phased residential redevelopment scheme has been approved in outline by the local planning authority.

The Group has consistently invested in its plant to maximise the efficiency and quality of its product.

In 2004 shares were offered to the public as the business was successfully floated on the AIM Market.

In 2009 Hathern Terra cotta was established at our Charnwood plant continuing over 100 years of tradition in the manufacture of faience. Already work has been won at the Savoy Hotel and Victoria and Albert Museum.

Our most recent acquisition is Freshfield Lane Brickworks, the leading manufacturer of clamp-fired stock bricks based near Haywards Heath. The business has built a strong reputation for excellence in the production of distinctive, clamp fired, multi-coloured stock facing bricks and pavers targeted at the niche premium segment of the market.

The Group now employs over 300 people at its five plants and has an annual capacity of some 70 million pieces.

The latest acquisition has reinforced our position as Britain's Brick Specialists. Our skills, service, range of products and well invested plant combine to provide distinctive products not only that we can be proud of, but that also give value and pleasure to our customers, those involved in design and construction and to generations to come.


http://www.mbhplc.co.uk/about-us

Half-year Report

RNS


RNS Number : 0460F

Michelmersh Brick Holdings PLC

25 July 2016




25 July 2016



Michelmersh Brick Holdings Plc

("MBH", the "Company", or the "Group")



Half Year Results for the six months ended 30 June 2016



Michelmersh Brick Holdings Plc (AIM:MBH), the specialist brick manufacturer, is pleased to report its half year results for the six months ended 30 June 2016.



HIGHLIGHTS



Financial Highlights:

§ PBT increased to £2.6 million (H1 2015: £2.5 million)

§ Operating profit of £2.6 million (H1 2015: £2.7 million)

§ 4% Increase in EPS 2.57 pence (H1 2015: 2.47 pence)

§ Turnover steady at £15.3 million (H1 2015: £15.3 million)

§ Net cash balance £2.7 million against a net debt of £0.8 million at June 2015



Operational Highlights:

§ Good performance in a flat market

§ Average selling prices increase 2% over H1 2015

§ Landfill License completes consultation period which will lead to economic realisation of Dunton site

§ Commenced kiln replacement project at Michelmersh - expected completion in autumn 2016

§ The Group ended the period well ahead of intake target with a forward order commitment over 47 million bricks

§ Well positioned for a stronger H2 2016 operational and financial performance





Commenting on the results, Eric Gadsden, Chairman of Michelmersh Brick Holdings Plc, said:



"The Company performed well in the first half despite the expected weaker market, and is on track to deliver its targets for the full year. We continue to invest in our plants to increase efficiency, which over the medium term will enable us to outperform the market with on-going creative development of products, investment in process and encouragement of the efforts of its employees. The business is profitable, cash generative and supported by a strong and long-term asset base"



EU Referendum Outcome

Whilst it is too early to know the full long-term impacts of the UK's exit from the EU, the Board feels that the Company is well positioned to manage any effects within the brick manufacturing and housing industry. The Board do not believe the outcome of the referendum in itself results in any material change in the outlook for the Group's near term financial results or future growth prospects.

56.50p

Share price has almost Half in price from the high, late last year and now is more in tone with EPS and on a prospective PE of 10 if it manages to keep going.

As I said before the shares seem far too overvalued at those earlier prices and only supported by a good NAV.

To have a premium rating needs a high growth, than this company is not able to do recently, with hardly any rise in sales and profits, and 5% on EPS is not good enough to be highly rated.

A buy in this weeks IC. They remain confident that they will meet full year expectations. A good healthy rise today.

Recovering well, another 7% rise today.

Good rise again today. Over sold. New houses need bricks.

Think your right dc, this could be another good un!

To date one or two good results coming from building firms and suppliers.

Economic News


Thu, 25 August 2016

Brick shortage could worsen housing crisis, estate agents warn



(ShareCast News) - A shortage of bricks in the UK will continue to restrain supply and force house prices ever higher, according to a housing industry body, while the Brexit vote could further hamper building levels by squeezing imports and numbers of skilled construction workers.
The construction sector needs 1.4bn bricks in order to resolve the housing shortage, according to a report by the National Association of Estate Agents (NAEA) and the Centre for Economics and Business Research (CEBR), which is equivalent to the total amount of bricks need to build all the houses in Leicestershire.

In 2016 the average UK home is made up of 5,180 bricks and the report said to resolve the housing shortage of 264,000 units, it would need 1.4bn bricks.

A shortage of bricks in the past ten years has contributed to the constriction of the housing supply that has in turn led to the sharp house price appreciation of the last decade.

Last year, two-thirds of small and medium-sized construction businesses faced a two-month wait for new brick orders, with almost a quarter waiting for up to four months and one in six waiting six to eight months, which was partially due to the slowdown in housebuilding following the recession.

NAEA managing director Mark Hayward, said: "As well as freeing up more land to ensure we can build the right sort of houses in the right places, it's crucial we have the right materials and skills to do so.

"It seems a simple consideration, but the fact that we don't have enough bricks to meet demand has a very real effect and holds up the process from beginning to end."

Brick supply declined between 2008 and 2013 and partially recovered in 2014 and 2015, according to the report.



Smaller houses, but bigger demand

Even the shrinking of the average house by 46% in the last century has not been enough to counter growing demand for new homes. In 2016 the average home is 83 metres squared, compared to 153 metres squared in the 1920s.

NAEA said this was due to the families being smaller and also due to financial restrictions as house prices have risen 45% over the last decade, buyers have had to settle for smaller properties.

Hayward added: "Houses may be getting smaller but we are needing to build more of them than ever so ultimately our needs for bricks is greater than before.

"We need investment in the sector to boost production, and housebuilding needs an image overhaul, to become a more attractive career prospect for school leavers and graduates. Until this is addressed, we might as well resign ourselves to a life time of astronomical prices and falling levels of home-ownership."

The association is concerned about the effects of the UK voting to leave the European Union will have on the supply of bricks coming into the country. Hayward said there was also a skills shortage in the UK for construction based jobs. Most labourers come from the EU and the Brexit result could see greater restrictions on foreign workers coming into the UK, which could also compromise the country's ability to build homes.

"We're concerned that the impact of the EU Referendum means this problem could get worse as we rely on the import of brick components from the EU and of course many of our skilled labourers come from there too."



Brick industry takes umbrage with estate agents findings

However the Brick Development Association (BDA) disagrees with the report from the NAEA.

BDA chief executive Andrew Eagles said "with absolute authority there is no shortage" of bricks in the UK and the data the report used is out of date as it was from April 2015.

The BDA, which represents 99% of brick manufacturers in the UK, said the there was a significant increase in brick production over the last 15 months, using data from the Office for National Statistics.

Eagles said: "The challenges the brick industry faced in 2014 when there was a dramatic increase in housebuilding are now behind us and the industry is confident it can meet the growing demand for its products in housing and other construction projects."

According to the BDA, in the second quarter of 2016 brick deliveries grew by 10.4%, compared to the first. Deliveries in June were 7.4% higher than in May.

The share price fell 16.67% to 52.50p at 1008 BST on Friday.

re - long lock away
" The board feel a speedy recovery of average selling prices by the beginning of next year is unlikely."

Something has gone wrong on the bricks business ......


Michelmersh Brick Holdings set back by falling prices

- Michelmersh Brick Holdings, an AIM listed specialist brick manufacturer and landfill company, have fallen behind on achieving their expected pricing gains in the second half due to average selling prices falling short and a rise in competition.

According to the firm, the UK brick market has been experiencing falling output and a small increase in dispatch volumes as manufacturers respond to market demand.

The board feel a speedy recovery of average selling prices by the beginning of next year is unlikely.

These changes in the materials supply market have led the group to resource the carbon additive used in brick manufacturing at Freshfield Lane. The process has been successful however higher output yield is likely to taper off going forward, in line with historic trends.

The landfill licence for the former Dunton brickworks has been granted and the associated work completed. The board expects an economic return on this asset in the near future.

The board has revised its financial expectations in terms of revenue and profit for the current year to a similar level to the previous period.

On the plus side, cost savings have been identified to help mitigate the effect of negative market trends and the order book remains strong at 5% ahead of that at the half year.

Operational issues at the Michelmersh site at the half year have been resolved to return the sire to its full operational capacity.

Cash flow is "strong" and the group expects to meet or exceed its previous cash expectations at year end.

"The board reaffirms that strong long-term housebuilding and RMI market fundamentals remain in place for the foreseeable future and that the Group is well positioned to grow market share in the coming years," the group said in a statement.

rubbish figures ..... i have them in my sipp so shall just have to sit on them until the new dawn

very disappointing given the housing shortage and thus, one would have thought, the requirement for ever more bricks

Not surprised.

The entire construction sector is in downtrend.

Yesterday Travis Perkins warned and now this it tells me the construction sector is on a downward trend.

Cynic - it's not as though any new technology has pushed Bricks aside....yet....so it's only Uncertainty in the Market, IMHO . . . . at today's prices...51p has to represent excellent LT value . . . .
If the Market stumbles to Post 2008 levels then this is definite Buy - around 15p - so there is some way to go . . . hopefully it won't get there . . . Good Luck.
EDIT-(3Jan2017)- spoke too soon ! . . . although recent fall may be Issue of Equity for Employee Options ( did we now this was Lurking?)
....Rather the UK-Gov is to build (2017 with Chinese help!) five factories to make "Kit-homes" - I'm guessing the finish won't be real-bricks, rather a sand-plastered, or grit exterior, with weatherboarding to break large swathes of flat areas. sp 46p
EDIT (31Jan2017)- Sp 52p falls despite extra cash - but it was already an asset, probably already in the price. What it says is that this is the only News.... and one that once gone, it's Gone.

Sale of landfill site and pre-close statement
RNS
RNS Number : 1914U
Michelmersh Brick Holdings PLC
16 January 2017
 
16 January 2017
Michelmersh Brick Holdings Plc
("MBH" or the "Group")
SALE OF LANDFILL SITE AND PRECLOSE STATEMENT
Michelmersh Brick Holdings PLC (AIM: MBH), the specialist brick, land development and landfill company, is pleased to announce that it has exchanged contracts for the sale of the 25 acre former Dunton Brothers brickworks at Chesham in Buckinghamshire, for a total consideration of £2.68 million in cash, to London Green Resources Limited. Subject to the procedures of the Environment Agency completion will take place within 10 days of transfer of the Landfill Permit, which given current guidelines, is likely to be towards the end of H1 2017. The consideration is payable in full on completion and the net proceeds will be added to the Group's cash reserves.
The Group's audited accounts for the year ended 31 December 2015 included this plot of land in fixed assets as a landfill asset at a value of £1.25 million and, after costs, the expected surplus on sale will exceed £1 million. The asset will be disclosed in the accounts to 31 December 2016 as a current asset for resale at the expected net realisable value. The uplift in value, from the 2015 value to net realisable value, will be credited to revaluation reserves in the Group's financial statements for the year ended 31 December 2016.
The Board expects to release the preliminary announcement of the results for the year to 31 December 2016 on 20 March 2017. In October 2016, the Group announced that it expected  its financial performance for 2016 to be at or around a similar level to that reported for the full year 2015 and the Board confirms that expectation. Cash generation was particularly pleasing with year-end cash balances exceeding forecast.

sp has picked itself off the floor in recent days ..... annual results just released are ok .....

· Turnover up 3.4% to £30.1 million (2015: £29.1 million);
· Profit before tax stable at £4.5 million (2015: £4.5 million);
· Debt free with a year-end cash balance of £4.7 million (2015: £2.9 million);
· Dividend doubled again to 2.0 pence per share payable for the period; and
· Strong forward order commitments -well positioned for 2017 operational and financial performance.

Operational Highlights
· Kiln replacement project completed at the Michelmersh plant, now yielding 99%;
· Operational issues at the Michelmersh plant have been resolved;
· Average selling prices maintained; and
· Since year end, the Company has signed a conditional contract for the £2.7 million sale of the former Dunton brickworks site at Chesham.

Proactive investor - Michelmersh divi hike signals confidence in cash generative abilities
15:15 20 Mar 2017
The debt-free company doubled the divi and it also has plenty of efficiency-boosting capex projects on the go

Michelmersh operates at the high-quality end of the market
Strong forward order commitments at the specialist brick manufacturer Michelmersh Brick Holdings Plc (LON:MBH) paved the way for a surprise doubling of the dividend.
As it did last year, the company doubled its dividend in its full-year results, hiking it to 2.0p, compared to market expectations of 1.2p.
Cash balances at the end of 2016 stood at £4.7mln, up from £2.9mln the year before, and the board signalled its clear intent to provide shareholders a meaningful return on their investment by announcing its intention to start paying interim dividends.
The dividend for 2016 represents more than 40% of earnings and the plan is to keep up this level of distribution so long as the group is trading favourably.
Speaking to Proactive Investors, joint chief executive Frank Hanna said the company was "very confident of its cash generative abilities" of the business, and that the doubling of the dividend was justifiable reward for Michelmersh's loyal shareholders.
There is a school of thought that says not carrying debt in the current interest rate environement is a failure to 'sweat the balance sheet', as the saying goes, but Hanna opined that "having cash gives the business the ability to breathe".
The group has a number of capital expenditure (capex) programmes on the go, designed to enhance efficiency and improve the product.
Hanna cited the £1mln investment in the kiln at the eponymous Michelmersh plant, which is yielding 99%, as an example of the company using its cash to build a long-term business.
The capex process sounds a bit like a painting the Forth Bridge job, with a succession of plant-by-plant improvements, by which time the first upgrade needs further improvement.
"It's a circular process. We just want to make sure that every pound we are spending enables us to produce more widgets more efficiently," Hanna said.
Investment during 2017 will largely be focused on yield and energy efficiency projects with existing kilns and dryers. The group also plans to undertake an extensive engineering review of its key manufacturing assets to identify further plant maximisation and risk reduction projects.
Revenue in 2016 rose to £30.06mln from £29.07mln the year before, while profit before tax edged up to £4.57mln from £4.56mln.
"The group sits in a well-defined segment of the UK brick sector; our high quality products set technical standards and our service levels are recognised by our customers. We continue to develop the business around our product offering and commitment to our customers," said Eric Gadsen, chairman of Michelmersh, who will be stepping down from the role at this year’s annual general meeting.
“The positive indicators and market fundamentals look set to continue. There is a widely accepted need and publicised government drive for delivering new housing. We believe this backdrop presents significant opportunities for the group in not only new builds, but also in RMI [repair, maintenance and improvements] where we are particularly strong,” said joint chief executives Frank Hanna and Peter Sharp.
“Through the course of the year the market may see brick demand rise to meet current mid-term UK output capacity; however, the significant uncertainties surrounding the impact of Brexit continue to prevail,” Hanna and Sharp said.
Hanna told Proactive Investors that his personal view remains that there is still not enough data, post-Brexit, to accurately assess what the likely medium and long-term effects would be.
"There's lots of uncertainty, but our forward order book is the largest it's been, and we've got good visibility for five or six months, which is important," Hanna told Proactive.
"It's also well balanced across the nation," he added.
The market reacted positively to the update, pushing the shares up 9.8% to 62.85p.

Going against the grain today.

AGM Statement
RNS
RNS Number : 6241E
Michelmersh Brick Holdings PLC
10 May 2017
 
10 May 2017
Michelmersh Brick Holdings PLC
("MBH", or the "Group")
AGM STATEMENT
 
 Michelmersh Brick Holdings PLC (AIM:MBH.L), the specialist brick, land development and landfill company, announces that, at its Annual General Meeting (AGM), which is to be held at 10.30 am today, Eric Gadsden, Chairman, will make the following statement:
 
 "After a very satisfactory trading performance in 2016, I am pleased to report that the Group has performed well for the first four months of 2017. The Board expects the Group's trading performance for the twelve months to 31 December 2017 to be in line with market expectations.
 
"I have announced previously that I would stand down as Chairman at this year's AGM. I would like to record my thanks to all of the staff in the business, shareholders and our team of professional advisers for their help and support over the last twenty years. I leave the Company in a very healthy trading position and have no doubt that it will continue to flourish in the coming years.
 
"The Board confirms that the results for the six months to 30 June 2017 will be released on 4 September 2017."

Very nice recovery, with the sp.