Michelmersh Brick Share Discussion Threads

[caradog] 19/10/2015 07:45

Mixed messages there. Profits ahead of market expectation, and announced over 2 months before year end. Sting in the tail, though, with the dreaded "softening of the market".

[market sniper1] 19/10/2015 07:34

MBH Michelmersh Bricks

Trading update this morning profits ahead of market expectations.

[cwa1] 19/10/2015 07:16

TRADING UPDATE

Full year profit before tax likely to exceed market expectations

Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer and landfill company, today reports to the market on a better than expected trading performance in the second half of the year to 31 December 2015, achieved through operating efficiencies, continued low energy costs and aided by the additional capacity from Freshfield Lane. Delivery volumes are below previous expectations as a result of a softening of the market, however average selling prices are ahead of those budgeted. As a consequence, the Group is likely to exceed the market expectations of profit before taxation for the year. The results for the full year are scheduled for release on 21 March 2015.

Interesting to see the date for their results release!!

[battlebus2] 19/10/2015 07:15

Trading ahead statement.....

[alanrussell] 29/9/2015 09:01

Well that's me sold this morning at 101p. It could well go higher but the risk is surely more on the downside.

Good luck to shareholders.

[battlebus2] 28/9/2015 23:00

I got a red tick for saying we could see a £1 soon, in fact it took less than three months :)) well done holders.

[alanrussell] 28/9/2015 21:53

I see Ibstock have announced plans to float in October. Presumably this has something to do with today's rise in MBH share price. What can we deduce from this news? Well the brick market is in fine fettle (not exactly news) so the numbers in the IPO prospectus will look attractive, in all probability why the private equity owners are floating now. The other conclusion, if numerous other IPOs are anything to go by, is that they judge the brick market is about to turn down so intend exiting now and leave the new shareholders to find out if that is the case.

Food for thought fellow shareholders.

[battlebus2] 19/8/2015 21:46

For info I'm out of MBH, made a very respectable profit. GLAH.

[battlebus2] 31/7/2015 13:29

Could see £1 very soon :))

[battlebus2] 24/7/2015 11:00

Good to see these continue to recover after results day, guessing the Venture Capital crew are still seeing value...

[ftseproactive] 20/7/2015 11:57

Proactive speaks to CEO Martin Warner following H1 results

[caradog] 20/7/2015 08:23

Solid results, I expect the next half year will show further improvement with better financing. My main concerns are the narrow shareholder base and the curious board structure announced today with a chairman, executive deputy chairman and split CEO role. I hope that responsibilities are clearly defined and agreed.
I can't see MBH turning into a stock market high-flyer, barring a takeover, but a solid, if dull, performer that can balance risk in my portfolio.

[cwa1] 20/7/2015 08:18

OK on the whole but I suspect "the market" are a little lukewarm on this bit:-

In the first five months of the year industry average selling prices were 20% over the equivalent period last year although volumes have fallen slightly as the market settles to the new normality. More recently there are signs that the period of frenetic growth has ceased and competitive forces are strong as the construction industry has responded to the increased level of activity and have adjusted their purchasing and stock processes accordingly. However the structural balance of supply and demand should ensure that brick manufacturing remains a busy and profitable sector. We expect the second half of 2015 to be quieter than the first half but we are comfortable with the market expectations for the full year ended 31 December 2015.

[cestnous] 20/7/2015 08:09

Results seem OK to me but it seems the market was expecting something better?

[battlebus2] 09/7/2015 17:25

Hosking adding over 14% now...

[battlebus2] 06/7/2015 14:43

Good to see us blue again given the Greek worries....

[battlebus2] 03/7/2015 13:43

Continuing to rise with results shortly...

[battlebus2] 23/6/2015 23:09

The Great British brick shortage is over. So says Martin Warner, the chief executive of the largest British owned brick maker, Michelmersh.

"The panic is over," Warner declared. "Building during the financial crisis slowed dramatically, but this is changing now and we're getting to a point now where there is steady demand and steady supply and years of growth projected."

This is in stark contrast to this time in 2014, when the Royal Institution of Chartered Surveyors warned shortages were stymying a recovery in building and construction sector.

The shortage was linked to the financial crisis, when construction ground to a halt and brickworks were left with an oversupply. To get through the crisis, brickworks around the country closed their kilns. But a revival in construction, linked in part to increased house building, saw demand increase and supply struggle to keep up.

Warner said: "The shortage is over because we're making more and importing the difference."

Michelmersh

Warner's firm is churning out 70 million bricks per year, making it the fourth largest brick maker in the UK.

The company is injecting £2.5m (€3.5m, $3.9m) in capital expenditure each year to make plant improvements and increase efficiency to keep up with demand at its four brick plants.

The change in fortunes of the construction sector has had a knock-on effect on Michelmersh's bottom line. Earlier in 2015, annual pre-tax profit rose 500% to £2.6m.

"Everybody wants a brick home," Warner said. "Britain requires 2.2 billion bricks a year and the country is at full capacity making two billion, the rest made up by imports."

Private equity

Coinciding with the end of the brick shortage and the equilibrium of supply and demand was the acquisition of two brickworks by private equity in December 2014.

Ibstock, which makes 900 million bricks per year, fell into the hands of US private equity juggernaut Bain. And Maidenhead-based Hanson was snapped up by Lone Star, another US private equity giant. Hanson employs 1,500 across 18 production sites in the UK.

According to the latest ONS figures, construction output is rising sharply, increasing by 9.5% over 2014.

Sensing the sector is on course for steady growth, it would appear private equity is lumping on.

How might it affect the sector?

If you want to build, you need bricks. There is no getting around this and Britain wants to build houses. Experts believe one repercussion of the latest acquisitions could be a rise in brick prices.

One industry source said: "The logical step they to take would be to ramp up prices, but it's early days still. They've just got their feet under the table and they're still mulling over their next move."

With a government that has promised to tackle house building, an expanding construction sector and a benign economic environment, it is no surprise private equity firms are looking to build strong foundations before they cash in.

[battlebus2] 23/6/2015 22:57

Yes, those early to the party here would want that indicated
New recent highs holders :))

[alanrussell] 23/6/2015 22:40

The volume over the last two days is more than would normally be expected from a tip so who knows. (BTW make that RECENT highs bb2)

[battlebus2] 23/6/2015 20:46

Not sure if the rise is due to the tip but great to be at new highs :))

[battlebus2] 19/6/2015 08:31

Thanks thosewhocando.

[battlebus2] 20/5/2015 07:14

Great AGM statement... Should silence any doubts over trading and pricing...


"I am pleased to report that the Company has continued to perform strongly in the first four months of 2015. Demand has been strong and deliveries are up by 10% on the same period in 2014, partly as a result of the increased capacity at Freshfield Lane. We have also seen continued price improvement as the brick market adjusts to current activity levels in the construction sector. We are actively assessing opportunities to further invest in our manufacturing plants to reduce costs and secure longevity of operations.

"The Board expects continued strong trading and high demand for its premium product and consequently anticipates that the Group will meet current market expectations for the year to 31 December 2015.

"The Board continues to address opportunities with ancillary land assets at the Charnwood quarry and the former Dunton brickworks site and expects to report positive progress through the year.

"The Group remains uniquely placed in an industry with high barriers to entry. We remain well-financed and positioned to benefit from higher demand for bricks in the UK. Our market position, asset base and enhanced shareholder register gives the Board optimism about our future prospects."

[battlebus2] 15/5/2015 16:23

Holdings in co increased from 10 to 13% due to third party transaction....