Michelmersh Brick Share Discussion Threads

[my retirement fund] 31/7/2018 00:16

Perhaps mbh are immune to weather and energy costs ?

[bamboo2] 30/7/2018 23:44

In our area, FLB Multi's [part of MBH] can be used as an alternative to Ibstocks local production. They have similar visual appearance and performance. [raw material comes from very similar clay beds]

Many planners won't notice the difference!

[twistednik] 30/7/2018 19:24

Ibstock mention a healthy market which should help MBH. I don't know if they compete in the same exact space, but any operational problems for ibstock could benefit these guys

[shauney2] 30/7/2018 18:27

Maybe you should read their update again and look for the reason for the profit warning.

[my retirement fund] 30/7/2018 17:44

Surprised this hasn't cratered after Ibstocks nasty profit warning.Perhaps the market is in late summer slumber mode and hasn't woken up yet ?

[bamboo2] 27/7/2018 14:33

shauney, yes looking good here.

I have used FLB bricks for well over 25 years, and have always enjoyed a good customer experience, both before and after MBH became owner.

Pre MBH the brick clamps were fired with coking coal rather than gas. The smoke was amazing. Now the firing is all gas based, which is more reliable, cleaner and quicker.

The current brick shortage will help ensure pricing power.

[shauney2] 27/7/2018 14:02

Good call yesterday Bamboo.

[marvelman] 27/7/2018 14:01

Thanks bamboo...worth knowing...I noted this company has a market cap of 71 million backed up by over 50 million of property and plant. The debt appears to be well serviced by cash flow and still leaves room for a decent dividend.

[bamboo2] 27/7/2018 13:57

Did some calcs based on various types of reversal chart pattern scenarios, and came up with a minimum target price of 92.

I expect historical resistance at approx 86-87

[marvelman] 27/7/2018 12:11

Pretty sure there is a seller or an overhang here the MM's are trying to manage so a little patience required.

[marvelman] 27/7/2018 11:08

You can sell online at 80p now so it does appear to have bottomed and getting interest which is seeing it move up again.

[shauney2] 26/7/2018 12:34

Worth a nibble and i have.Will be interesting to see the FCF v debt in the results in September.Debt is also backed by freehold property and land.

[marvelman] 26/7/2018 08:51

Just spotted this through noticing your post highlighted after a long absence from my watchlist. Looks a very interesting re-entry point. Plenty of debt but a niche market and free cash flow to service it. Also paying a dividend....worth a nibble.

[bamboo2] 26/7/2018 00:45

Bought some of these. Hoping for a reversal pattern to develop. Note heavy volume.
Big M chart pattern has completed to target.
Gap from March filled.
Potential turn 24-25/7/2018

[makinbuks] 04/4/2018 11:17

Interesting second kick upwards following the results. Must be in demand given the current market background

[my retirement fund] 19/3/2018 08:07

Wonder if it will get re-rated now.

[masurenguy] 19/3/2018 07:56

Excellent set of results which should prompt a healthy rise in the shareprice this week !

RNS Number : 0171I
Michelmersh Brick Holdings PLC
19 March 2018

FINAL RESULTS

Michelmersh Brick Holdings (AIM:MBH), the specialist brick manufacturer, is pleased to report its audited final results for the year ended 31 December 2017, representing a strong performance and continued progress.

Financial Highlights

-- Revenue up 26% to £37.9 million (2016: £30.1 million);
-- Underlying(1) Operating profit increased by 42% to £6.5 million (2016: GBP4.6 million);
-- Underlying(1) EPS at 5.9 pence up 34% over 2016
-- Underlying(1) EBITDA increased 42% to £8.0 million (2016: £5.6 million)
-- Cash generated by operations of £6.9 million (2016: £5.7 million), representing 141% of Operating profit; and

-- After paying the first ever Interim dividend this year, total dividend increased by 7.5% to 2.15 pence per share for the period.

Operational Highlights

-- Acquisition of Carlton for a net consideration of £31.2 million;
-- Completed sale of former Dunton brickworks site for £2.7 million;
-- Strengthened board with the appointment of Stephen Bellamy as non-executive director;
-- Built forward order book to 60 million units; and
-- Strong showing at the BDA awards including the BDA Supreme award.
Martin Warner, Chairman at Michelmersh Brick Holdings, commented: "The Group's position has been significantly strengthened in 2017 with the addition of the Carlton plant. Our geography, product range, scale and market presence have all been enhanced as a result and there is further scope to benefit from this acquisition as the management teams work together to maximise the performance of the Group. The UK construction industry remains stable with a level of activity that keeps UK brick manufacturing operating at capacity with limited options for expansion. The Group's order book is strong and 2018 promises to be busy."

[my retirement fund] 19/3/2018 07:22

There doesn't really get any better. This will be on a forward PE of 10/11 which can only drop further as it pays off its lian book and has with a land development property company tacked on for good measure.

[my retirement fund] 16/3/2018 16:29

Results wont disappoint

[alanrussell] 16/3/2018 11:23

My word, the thread bursts into life!

I'm inclined to agree that MBH looks like good value at this price. I've been out of these for some time but had a look this morning, spread tight, so bought at 77.8. No fortune to be made here but hopefully a modest profit.

[masurenguy] 16/3/2018 08:15

Yes, it is rather strange. Here is an excerpt from the Ibstock trading update that was issued on January 18. "The market for bricks in Great Britain grew through 2017. Domestic manufacturers were unable to meet demand despite reducing their stock levels and consequently import levels rose during the year."
Since then the Ibstock shareprice has risen by 12.5% in contrast with the MBH 14% decline.

[lancasterbomber] 15/3/2018 18:43

Yes this drift down is a bit strange considering how well
Ibstock (IBST) is doing

[masurenguy] 15/3/2018 17:00

Results due on Monday. A reminder of the salient points in their recent preclose trading update.

Pre-close Trading Update: 22 January 2018

The Board expects that underlying revenue and profit from the Group, enlarged by the acquisition of Carlton Main Brickworks Ltd in June 2017, will be in line with market expectations. The Board is also pleased to report that the Carlton acquisition, which increases the Group's output to over 100mn bricks, is bedding in as expected and operational synergies are being implemented. Demand from the house building and RMI markets continues to be robust and Group's well-balanced forward order book for 2018 reflects this trend.

Since that update, the shareprice has drifted down by circa 14% so it will be interesting to see whether the results arrest this drift and make a positive impact.