Michelmersh Brick Share Discussion Threads

[anley] 24/3/2017 17:05

The IC today had a helpful article - so I was told by my broker - what is needed is a helpful trading statement at the AGM or even before.........we shall see.

[anley] 21/3/2017 11:27

Well put FISHYNECK.........it goes to show how brokers have not got their fingers on the pulses.
There are so few decent brokers left in London and the ones that are only want the big deals..........its a pity but do read the Daily Telegraphs business article this morning on this topic...........I can't post as my copy is with the "dust men".

[fishyneck] 21/3/2017 11:09

Also using 2014 as a year for comparisons on imported brick is slightly misleading. 2014 was a major anomaly year with regards to brick supply. Major shortages from all UK manufacturers that year was the reason for the higher than normal imports, nothing to do with currency rates.

fn

[anley] 21/3/2017 10:36

NAV of 65.8p is nonsense from Cenkos, the broker.

Get your pencil out or I will come and tell you how to work out the valuation.

Nevertheless, it would be nice to see the shares trading at around a premium say 70p V NAV (CENKOS).

[bamboo2] 21/3/2017 09:57

I'd like to see an eod close above 62, to consider the prior breakaway gap fully closed. For now the top of the gap remains resistance. imo

[cheshire man] 21/3/2017 09:43

Pushing up again today I see :-)

[glasshalfull] 20/3/2017 22:24

Well done Michelmersh management & employees!

Positive outlook today alongside results. Both peers Ibstock (the largest) & the Forterra (number 2) had released results in recent weeks, providing similar positive commentary in their outlooks.

Interestingly, MBH's house broker indicates that imported bricks have seen a significant decrease over the last 3 years from c. 330m bricks pa in 2014 down to c. 220m in 2016. The benefit of sterling weakness making imports more expensive & which augurs well for all UK brick manufacturers.

Cenkos have retained their buy recommendation & indicate,

"...Further progress has been made on cash generation and strengthening of the balance sheet, resulting in a doubling of the dividend, equivalent to payout ratio of 44% of adj earnings. This positions the company into an attractive yield play, which currently trades below its NAV per share of 65.8p."

&

"MIchelmersh’s financial position has been transformed in the past two years, moving from a £2.1m net debt position to £4.7m of net cash in FY16. £2.5m of FCF was generated in FY16 equivalent to a yield of 5.4%. In FY17, we expect a further rise in net cash, principally from the £2.7m sale of the Dunton site."

They conclude that MBH trades at a 9% discount to the average of indebted peers of Ibstock and Forterra & also the only UK brick listed company to trade below the book value of its equity at a price/book value of 0.87x ...while also offering a meaningful dividend yield now.

Kind regards,
GHF

[makinbuks] 20/3/2017 14:14

With the land sale proceeds and this yes FCF after another 2p dividend we will have around 10p per share worth of cash on the balance sheet. Whats their plan for that?

[panic investor] 20/3/2017 12:23

Managed to add a few whilst it was down this morning - takeover does look likely imho

[lancasterbomber] 20/3/2017 11:41

Personally I think it will be taken over

[anley] 20/3/2017 11:22

After the land sale has been completed the NAV of this business could be as high as 100p............but I think that will only be achieved once sales growth starts again and margins improved which is all on the cards.........so not a highly over expensive share in my view.

[cheshire man] 20/3/2017 10:01

We may see that gap filled this week yet ? :-)

[alanrussell] 20/3/2017 09:58

Oops, you're right of course. Silly me, I was coming at it back to front as it were, and it's only Monday!

[dangersimpson2] 20/3/2017 09:50

2p divi /4.38p EPS = 46% = greater than 40% of earnings

[alanrussell] 20/3/2017 09:25

I'm very happy with 2p but can't get the divi to square up with the statement that it is more than 40% earnings.

Generally speaking solid results, solid hold.

[wanttowin] 20/3/2017 09:13

XD on the 2nd June

[anley] 20/3/2017 09:09

Has anyone worked what the YIELD is now the dividend has been doubled and the price is say 58p?

Thanks...........and does that change the chart in any way..........

[masurenguy] 20/3/2017 07:53

RNS Number : 8737Z
20 March 2017
Michelmersh Brick Holdings Plc

FINAL RESULTS

Michelmersh Brick Holdings (AIM:MBH), the specialist brick manufacturer and landfill company, is pleased to report its audited final results for the year ended 31 December 2016.

Financial Highlights

-- Turnover up 3.4% to £30.1m (2015: £29.1m);
-- Profit before tax stable at £4.5m (2015: £4.5m);
-- Debt free with a year-end cash balance of £4.7m (2015: £2.9m);
-- Dividend doubled again to 2.0p per share payable for the period;
-- 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;
- Since year end, the Company has signed a conditional contract for the £2.7m sale of the former Dunton brickworks site at Chesham.

Eric Gadsden, Chairman at Michelmersh Brick Holdings, commented: "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."

[bamboo2] 18/3/2017 17:59

Confirmed Double Bottom tp=min 61, former breakaway gap down zone filled at 62.5, also historical resistance level.

[abergele] 18/3/2017 15:57

They've just supplied the bricks etc for a big complex of units and pves at the west end of Rhyl..

[brummy_git] 18/3/2017 13:15

Yes, many thanks Bamboo - great stuff.

BTW, does anyone know what is the approx size of the UK brick market - circa 1.7bn bricks pa? Also how does this split between new build properties (I guess 75%?) vs R&M/other (25%), and what share do the importers presently supply - approx 15%?

Encouraging recent updates from both Ibstock & Forterra (albeit more volume end of market), should (hopefully) provide a good read-across for MBH on Monday.

[panic investor] 18/3/2017 12:29

Some great info here - didn't realise you were here bamboo