Michelmersh Brick Share Discussion Threads

[drewz] 07/2/2013 13:22

All in good time. Plenty of opportunity to buy cheap stock in the meantime as this is way off the inst's radar, even though it trades at barely half book value.

[shanklin] 07/2/2013 13:14

What would be helpful from MBH is some detailed information on:
- the likely timescales for monetizing the two pieces of land with planning permission and
- their plans for the cash which would make a big dent in their debt and/or could be invested in the business.

[hastings] 07/2/2013 12:46

Been a while coming and certainly done no harm for the share price.
Good recovery prospects here too over the longer term.

[shanklin] 07/2/2013 12:26

I live to serve :-)

[gingerplant] 07/2/2013 12:13

"Michelmersh Brick Holdings is pleased to announce that at a planning meeting of Telford & Wrekin Council on 6 February 2013, a resolution was passed to approve outline planning consent for the site. The consent relates to the residential development of up to 185 dwellings subject to standard conditions. The consented land was formerly the site of brick manufacturing which ceased in 2010 and is adjacent to the Group's current brick manufacturing facility which is expected to continue to manufacture 22 million bricks per annum."

It's worth a lot more than 30p IMO.

[alanrussell] 07/2/2013 12:11

There you go!

[shanklin] 07/2/2013 09:51

I have no idea whether they will RNS this news but as its material to the valuation of their assets I certainly think they should.

[alanrussell] 07/2/2013 09:33

Thanks Shanklin. The RNS of 31/1 appeared to indicate that there is unlikley to be a further update before 25/3 but there should be some good news then.

[shanklin] 07/2/2013 08:59

TWC/2012/0320 Land Off, Sommerfeld Road, Hadley, Telford, Shropshire
Outline planning application with means of site access from Sommerfeld
Road to be determined, (Layout, scale, appearance and landscaping
reserved for subsequent approval) for the erection of up to 185no. dwellings
(Class C3), demolition of all existing buildings, public open space including
linear park and community allotments, balancing pond and associated
earthworks to facilitate surface water drainage, landscaping, car parking
and other ancillary works.

TWC/2012/0583 Blockleys Bricks Ltd, Sommerfeld Road, Hadley, Telford, Shropshire, TF1 5RY
Reconfiguration of existing factory site to include provision of new office
block (Class B1) relocation of wheel wash and reconfiguration of existing
roadway and parking arrangements and other ancillary works

[shanklin] 07/2/2013 08:57

Two planning applications for MBH as detailed at were considered at a Teleford & Wrekin Council meeting last night.

Having just spoken with somebody at Planning Control there, I understand both applications were approved.

Cheers, Martin

[alanrussell] 04/2/2013 10:08

From 2012 annual report. Seems to me there must be some element of development value in this but without a breakdown per site I don't see how we can be sure.

The Group's freehold land and buildings were revalued by the Directors on 31 December 2011, on a depreciated replacement cost basis for brickwork properties, and an existing use value for the land used for mineral
extraction or waste disposal. Other property has been valued at open market value. The Directors relied on external valuations of the land and buildings performed by Gerald Eve LLP as at 31 December 2011, and on valuations of the landfill and mineral reserves by Wardell Armstrong LLP conducted in August 2011. These valuations incorporated certain assumptions in relation to the future use of the properties and the estimated useful economic life relating to clay extraction and waste disposal where appropriate to do so. The Group's
freehold land and buildings were valued at £35,313,000 at 31 December 2011 (2010: £41,710,000), resulting in a decrease in the revaluation reserve of £6,090,000 (2010: increase £9,259,000) at that date.

[shanklin] 04/2/2013 10:00

CJohn

I think the Persimmon land on which planning permission has been granted is valued on the basis of the permissions that have been received to date and a conservative view as to what that might mean in valuation terms. AIUI, this has been reduced in BS to reflect the weaker property market. If anything I expect the adjudication outcome to increase the valuation.

I am not sure about the other Telford land on which a planning application is to be considered imminently. Until planning permission is received on this, I would like to think this was being valued fairly conservatively albeit I believe its in an area where the presumption is that planning permission should be granted.

I'm not sure if the notes to the last FY accounts, available on the MBH web-site, give more detail on the basis for land valuations... ...but that's where I would look first.

[cjohn] 04/2/2013 09:48

Good point, Shanklin

Well, for example, the Persimmon land, I dont think that's in at the adjudicated value. And the new Telford land for which they tell us there's considerable interest?

But you may be right that these are in at SOME premium to cost.

I'm going to look into this. Do you know anything more?

[shanklin] 01/2/2013 12:20

I'm pretty certain that fully remediated land with planning permission and land with outline planning permission is not in the B/S at cost. However there is a lot of other land in the B/S at cost.

[cjohn] 01/2/2013 11:21

Yes, agreed, Drewz. Did you notice on the update that they said in October they had RECORD turnover and profits?

CLearly trading is volatile - it fell back in November/December, but they're profitable in a very depressed market. And barriers to entry - partic at the top end of brickmaking, MBH's niche - are pretty formidable.

I reckon turnover and margins will be up for the last three months.

I'm still staggered to be honest, that I was able to pick up a large amount of these in and around 20p. At less than a third of tangible book and thta's with all its property entered at cost.

[drewz] 31/1/2013 13:19

Exactly, CJohn. They don't really have much competition left standing for stock bricks, do they?

Only volume wire-cut producers remain as meaningful competition and that's comparing apples with pears.

So any serious upturn in house building, especially at the quality end, should see MBH prosper and significantly so.

[cjohn] 31/1/2013 13:07

I'm happy. I'm up 40% already over a few weeks.

Trading at such a discount to tangible assets: any improvement in company performance would send these significantly higher.

[alanrussell] 31/1/2013 08:33

That's altogether more promising.

31 January 2013
Michelmersh Brick Holdings Plc
Trading Update and Notice of Full Year Results

Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer and landfill company, is pleased to report that overall trading, for the twelve months ended 31 December 2012, was marginally ahead of market expectations.

In September 2012, the Company reported that it expected only to break even, however as a consequence of a better than expected performance in the final quarter, the Board now expects to announce a modest profit for the year. Trading activity in the second half of 2012 was very patchy; in October record levels of turnover and profitability were achieved, whilst November and December were less busy.

Order intake in the latter part of 2012 was encouraging and January 2013 started well, but recent weather conditions have threatened the promise of a good start to the year.

MBH is also making positive progress with its development activities. It has received a satisfactory final determination of the option price of its consented land in Telford and is in discussions with Persimmon as to how to take this matter forward. The 15 acre former factory site at Telford is proceeding through the planning process and there is strong interest, from a number of residential developers, in acquiring the site.

Notice of Results

MBH intends to announce its full year results, for the twelve months ended 31 December 2012, on Monday 25 March 2013, when it will provide a further update on trading.

[drewz] 25/1/2013 12:25

Come on Osborne, FFS, inject some stimulus into house building; get the bloody economy up off its knees. Down -0.3% in Q4 2012, FFS.

[master rsi] 24/1/2013 12:36

After being marked down ( or small retracement ) lately today is on the up by a full penny

[hastings] 16/1/2013 19:58

A nice recovery on the cards here, more to surely come over the next few years.

[drewz] 16/1/2013 16:39

Solid finish.

[drewz] 16/1/2013 11:22

They must be close to concluding the Telford land deal with Persimmon by now surely.

It has been dragging on for years, but at the interims in September they said it was imminent.

A successful conclusion of the Telford land sale will clearly have a material impact in strengthening the balance sheet of such a small company.

Perhaps this is what is behind the recent buying interest.

There are always those in the City who get wind of corporate developments before the poor bloodied shareholders. Especially where AIM companies are involved.

[master rsi] 16/1/2013 11:00

nicely moving higher, though buying is on small size