Michelmersh Brick Share Discussion Threads

[aderemi] 27/9/2005 15:28

breakout...

[mw8156] 27/8/2005 12:15

Fair write up in the IC but what makes MBH good value when BGBK IS high enough?

[asmagliocco] 24/8/2005 21:14

IMHO the brickmaking side is not bad given the current general slowdown and, despite the spin AR mentioned, there is a slight note of caution in the near-future outlook for profits. But hey, cycles rotate and extraordinary demand can come from special projects anytime.
But I think many of us are in this for the land play and the balance sheet will be well strengthened when a juicy deal comes through.
So specialist supplies and valuable (to be revalued?) land makes this a definite hold for me, almost ignoring any short-term share price movements.

[alanrussell] 23/8/2005 08:13

Results out for H1



Although they look excellent at first glance in view of Baggeridge's numbers all is not as it seems. Management has choosen to compare with H1 04 and omit to mention the disruption caused then by upgrading facilities. A rather disappointing approach - do they think we are stupid?

If we compare with the previous half year, a more realistic comparison, the reported increase in turnover of 5.7% becomes a decrease of 5% and the increase in units manufactured to 33.6M from 32.9M becomes a decrease from 38.1M, some 12%.

Still in view of the backdrop it's not a bad performance, I just wish they had not tried to spin the numbers. Importantly planning permission has been obtained and the option will now be exercised. That should provide strong support to the share price. Shows the wisdom of buying into companies with land as assets.

[hgiderek] 14/8/2005 17:10

Well AR, I've decided to sit on my small plot for a year and see if a jump occurs with the land.
What with the oli & mining, internet gambling, etc., I have enough excitement elsewhere not to worry about MBH.
Cheers & good luck.
Derek

[alan russell] 16/7/2005 11:20

Baggeridge's profit warning has inevitably caused a fall in the MBH price. While the housebuilders earlier in the year spoke of upping volume to maintain profits in face of stagnant and falling prices, that has not been translated into reality. You can't just whistle up 10% more tradesmen. Housebuilders now acknowledging lower volumes that are bound to hit their suppliers. MBH may have more efficient plant and a tiny niche element but they cannot avoid the market forces.

Hard to see the price revisiting the high 90's until volumes improve, not this year and maybe not next, or the sale of the first land at Telford is imminent, ie first half of next year. Could be in for a dull six months. Still one of the reasons I bought MBH was the property element underpinning the price. Even if the brick market weakens further, which is more than likely, it is hard to see the price below the float price. Either sell now or forget about until next January. Thoughts?

[shanklin] 22/6/2005 07:09

FWIW, have just posted

Cheers, Martin

[hgiderek] 21/6/2005 12:34

Ref. the planning permission - Money Week categorically states 'In fact, Michelmersh has planning permission for this plot' - presumably the whole 59 acres, but not clearly stated.
Don't quite know how to verify.
Cheers.

[shanklin] 21/6/2005 10:24

OK, thank you hgideruk

Was already aware of the 59 acre Telford landill site estimated at approximately £0.75 million per acre once planning permission is granted, with planning permission for the first 6.5 acres currently being sought and fairly likely given the extent of nearby building activity.

Just wondered if Moneyweek had mentioned anything else... ...albeit the Telford situation should be sufficient to give a significant lift to the Balance Sheet NAV/share and, hopefully, to the share price.

Cheers, Martin

[hgiderek] 21/6/2005 10:12

Shanklin
They gave a bit of history & scope, hinted at previous acquisitions & highlighted land in Telford...
59 acres valued on the books as existing use, but with planning permission - implies £0.75 mill. per acre - this doubles asset value 'to a figure way above the 90p. share price'. Scrummy !

[shanklin] 21/6/2005 08:19

hgideruk

Wht else did Moneyweek have to say about MBH please?

Cheers, Martin

[hgiderek] 21/6/2005 07:57

Tipped in Money Week - 'The five tastiest stocks on Aim'.
Seems a hidden gem.

[felix99] 11/4/2005 18:06

Long term its fantastic. Oodles of land and landfill all appreciating assets not reflected in the books.

Great asset stripping share - only snag is that Board own over 50% so noone doing anything without their agreement.

Oh yes and there is a nice brick business - a minor asset in grand scheme of things IMHO. You dig out the clay , bricks are effectively a profitable way of disposing of the clay and you are left with big holes which are worth loads a money for either landfill or development.

Cushti

[harlequin11] 08/4/2005 22:12

After a bit of your knowledge guys,

Info on short term (1 year) Med term (3 years) Longer term (5 years)
Any info at all really.....

Wil no my own research too....

Cheers...

[aderemi] 27/2/2005 15:35

Thanks martin -- i picked up a few

[bernstein] 17/2/2005 15:00

Nice to see some decent purchases going through.

[mw8156] 01/2/2005 19:38

Wouldnt be surprised to see MBH getting some press later this week.

[bernstein] 01/2/2005 13:52

There was a trade of 100,000 shares reported later in the day. I can only assume that this was a purchase.

[mw8156] 29/1/2005 14:05

Interesting rise and volume traded yesterday - any reason why?

[bernstein] 28/1/2005 13:30

A company with strong fundementals and potential for a bit of excitement. Looks interesting.

[jlrussell] 20/1/2005 11:44

The potential uplift in value of this land has not been accounted for in the balance sheet.

that and plenty of other +ive commentin the statement should see these up to 100p by results.

will now have to clerar some funds to buy more.

Rgds
John

[alanrussell] 20/1/2005 08:45

20th Jan 2005

Michelmersh Brick Holdings PLC

Pre Close Trading Statement

-Notice of results-

Michelmersh ("Michelmersh" or "the Company") (AIM: MBH), the UK's largest producer of handmade specification bricks and clay paviors, announces today that its results for the year ended 30 November 2004, to be announced on March 21 2005, are expected to show revenues and earnings in line with current market expectations.

The Company saw a strong performance in the second half, with all group
companies contributing to profitability. Following the commissioning of new plant at both Blockleys and Charnwood, the Company achieved a record level of production in November, with seven million units produced, establishing an excellent platform for achieving targets for the current year.

This positive trend continued into December, with trading up by over 20% on December 2003. With strong demand for all group products and a healthy order book, the trend looks set to continue.

In November, Michelmersh won three awards at the Brick Development Association's 2004 awards for its Blockleys clay paviors and Charnwood and Michelmersh handmade bricks.

The planning agreement relating to the quarrying, filling and subsequent development of 59 acres of land at Telford has now been finalised and a planning application for residential development of an initial 5 1/2 acres is in hand. The Company expects this initial site will be brought forward for sale within the next 12 to 18 months. The potential uplift in value of this land has not been accounted for in the balance sheet.

Eric Gadsden, Chairman, commented: "We are now beginning to see the benefits of the considerable investment we have made in new plant, which will stand us in good stead for future growth in profitability."


>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Like the bit about the development land. Bought a few today.

[pugugly] 16/12/2004 08:37

From a competitior today. Caused an initial 10% fall in the share price. Do not like the bit about energy costs. Any views?

Baggeridge Brick PLC said is expects to post a reduction in
first-half profit because of higher energy costs and a cooling market since the
end of the last financial year.
"Sales volumes since the year end have been lower than the unusually strong
corresponding period the previous year," the company said in a statement as it
reported full-year pretax profit of 8.0 mln stg after a restated 6.1 mln in the
year-ago period.
"In the current year we, like the rest of the industry, are faced with
significantly higher energy costs.
"Inevitably, there will be some time lag in the recovery of these costs
through higher prices. With the market also cooling, a reduction in first-half
profit should be expected."

[thumbtwiddle] 14/9/2004 16:26

seems to have settled a bit after the volatility alongside results...

anyone any views on the figures?