Michelmersh Brick Share Discussion Threads

[cwa1] 25/11/2021 07:14

Music to my ears :-)

Pre-Close Trading Update and Notice of Results

Continued Strong Performance Surpasses Market Expectations

Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer, today announces a trading update ahead of its final results for the year ending 31 December 2021. The Group intends to report its full 2021 results on 30 March 2022.

The trading performance of the Group has continued to be positive in the final quarter of the financial year. We continue to see strong demand in our end markets from new housing, key repairs, maintenance and improvement and commercial regeneration projects.

Despite the ongoing inflation impacts on our supply chain, the Group is managing its costs in line with management expectations. Specifically on energy prices, the Group's hedging policy means the Group is well placed to manage the impact of gas price volatility over the medium term with our requirements significantly hedged through to 2023.

As a result of strong trading, the Board is pleased to announce that it now expects revenue and profit for the Group to be ahead of market expectations for the 12 months ending 31 December 2021. Further, the Group has a strong and well-balanced forward order book giving management confidence as we move into 2022.

[brummy_git] 18/11/2021 14:41

Michelmersh (starts 10:25) was talked about positively here by Jamie Constable of Singers.

www.youtube.com/watch?v=KknJ6I5U_5g&t=3s

[cwa1] 13/10/2021 08:07

Not sure how much read across there is-but there must be a fair bit- to Brickability. They announced an update this morning...



"The UK housebuilding market has shown its resilience in recent months as the UK builds new homes at one of the fastest rates since the turn of the century. Brickability, as one of the UK's leading materials distributors, is well positioned to benefit from the growing demand for materials and has the supply and logistics capabilities to meet the market's needs. We remain cautiously optimistic for the future."

Also Barratt announced a trading update this morning which could be of general interest...



"The positive start to the new financial year has continued in recent weeks with private reservations remaining strong. This is particularly encouraging given the significant year on year reduction in Help to Buy reservations and the ending of the stamp duty holiday. We continue to work closely with our suppliers and sub-contractors and have not experienced any significant disruption to our build programme as a result of the challenging supply chain environment.

[twells1] 12/10/2021 13:43

no but hedge is on a sliding scale over five years

If you e mail the company maybe they will give you more info

I think the share price reduction has been very overdone

[bamboo2] 12/10/2021 13:01

twells1, did they give any idea of the size of the hedge?

MBH now fire their clamps using gas burners, but I remember not very long ago, the clamp was fired on a bed of coke. [Coke is also mixed into the clay] This used to produce some very 'interesting' results, particularly the colouring and textures of some of the overburns. Sometimes the fire went out, and production would be hit. Gas must be far more reliable.

[barnesian] 09/10/2021 13:30

I think the price weakness in MBH is caused by concern about energy availability and price. Possibly also about transport availability.

The cost of gas will have impacted MBH but only in the short term, and perhaps not even then if energy costs are well hedged. The value of the share is in long term growth and margins from premium bricks. It is a solid well managed company.

I think the price fall is overdone and provides a buying opportunity. I agree with twells1.

[cwa1] 01/10/2021 17:33

Nice show of confidence:-

1 October 2021

Michelmersh Brick Holdings Plc

("MBH", the "Company" or the "Group")

Director/PDMR shareholding

Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer, has today been notified that Paula Hay-Plumb, Non-Executive Director of the Company, has today acquired 17,300 ordinary shares of 20 pence each in the capital of the Company ("Ordinary Shares").

Following the acquisition, Paula Hay-Plumb's beneficial interest in the Ordinary Shares of the Company is 17,300 Ordinary Shares, representing 0.02 per cent. of the issued share capital of the Company.

[cwa1] 23/9/2021 12:17

I like the name change to Michelsmersh twells1, makes me think of them as a Bond baddie :-)

[twells1] 23/9/2021 11:22

I e mailed the company last week to ask about this and whilst energy costs are a significant cost in brick production they told me that they have bought forward energy up to five years ahead so have certainty of supply and a substantial hedge against energy prices.

Michelsmersh obviously can sell every brick they can produce, all their competitors will be hit by energy costs especially if they have not bought a hedge and Michelsmersh are in a position to pass on any increases

I think the share price fall this week has been overdone for what is a very efficient company, with very high margins and a hedge against energy prices who are in a position to pass on cost increases

[cwa1] 20/9/2021 16:51

Absolutely agreed, it is the clear and present danger in what otherwise, to me at least, is a decent company in a fairly sweet spot. I've got my rose tinted on and hoping that energy costs "normalise", IF they stay as high as they are then there could be trouble ahead...

[alanrussell] 20/9/2021 16:44

Sentiment here being hit by energy costs IMO. Still a quality company but hard to see much upside until visibility on costs easing.

[cwa1] 20/9/2021 16:25

FWIW I've just taken a handful here, drifted back from what seemed like a decent set of results(albeit in a very weak market, so probably no surprise).

[brummy_git] 07/9/2021 15:49

MBH H1 results update interview with Co-CEO Frank Hanna & CFO Ryan Mahoney here

www.linkedin.com/posts/paul-hill-a5994116_watch-michelmersh-brick-holdings-interim-activity-6840950091163996160-1vvD

[brummy_git] 07/9/2021 07:25

More impressive numbers from premium brick maker MBH today.

Find all the news, absolute/relative peer group valuations/KPIs & commentary here.

www.linkedin.com/posts/paul-hill-a5994116_building-product-valuation-multiples-kpis-activity-6840888863792132096-Cz-F

[cwa1] 07/9/2021 07:16

Commenting on the results, Martin Warner, Chairman of Michelmersh Brick Holdings Plc, said:

"We have made a very strong start to 2021, with revenue and profit ahead of our 2019 pre-Covid-19 performance and significantly ahead of the disrupted 2020 half year.

"We have entered the second half with a strong and balanced order book and we are continuing to see positive order intake momentum from our customers against the wider backdrop of recovery in the construction sector and demand in our key markets. Alongside this positive outlook we remain watchful of some of the broader risks impacting our sector and the UK economy and we continue to see the potential for disruption to our labour and haulage availability and wider inflation risks. As a result, we expect our profit to weight moderately towards the first half.

"With our strong order book and with demand from our customers expected to continue, the Board expects to be modestly ahead of the current financial year expectations and remains confident in the strategic outlook of the business. "

[w1lbur01] 07/9/2021 07:09

Nice update. Especially looking at the 2019 update

[cwa1] 01/9/2021 12:11

Mildly tempted...but I have enough already. Or have I :-)

[w1lbur01] 01/9/2021 11:55

Last top up let's see how results go next Tuesday

[cwa1] 09/8/2021 15:26

Indeed, nice to see a little strength and share price perkiness!

[sphere25] 09/8/2021 15:21

Almost been forced into nibbling a few more here.

The market isn't messing about and has gobbled up the shares on offer in the 120's last week very quickly! There were far more shares available last week (which suggested a longer bottoming period) but the numbers of shares available at 131p, 134p and 135p (currently) today have been very limited.

The price has been moving on very small buying and the chart is trying to break the downtrend and could bounce sharply (as per previous such moves off lows). Ultimately, such action could suggest the sellers in size have been cleared and it is just a matter of time to get back up toward the 150p-160p level.

Or at least that's the plan here!

I was abit surprised how far MBH had fallen. Have you noticed how markets have barely given a sniff with the good companies all year? How often do you see this level of pullback?

Naturally the speculative one's can be all over the shop and the bonkers expensive one's can get less bonkers expensive, but the small sell down's in the US (which translate into selling into the UK) have been so brief. The larger caps in the UK naturally move more instantaneous with the US, but alot of the smaller caps have barely batted an eye lid even when the DOW closes down a scarier amount (noted significantly more variation in the past).

You can have a little panic type or illiquid move in some (as per XPD) on the last little wobble, but they just get gobbled up in a flash. The shares that move closer with the US can be difficult to time (are they going to keep falling?) too because as the US gets bought up overnight, and rally back strong, the shares are already marked back up the next morning.

Ultimately, it just means grabbing the opportunities whilst they are there. Whilst the US is doing this continued turtle like dribble higher i.e. no drama, it works fine. The bullish spirits being intact often means the good shares that are putting out good statements will find buyers and get bought back up.

You can see by HL. statement today that "As we have eased out of lockdown and entered the summer months, we have seen a slowdown in dealing volumes and client activity versus the elevated levels this time last year" there isn't too much action either way so you could get some moves down on little volume, even if they aren't big moves.

Where does that leave us?

August to continue the dribble higher in the US on lighter volumes?
Sep and Oct must carry some historic scars - more meaningful correction then?
Will any sell down actually last more than 3-5%?
If it does, could that be the opportunity to buy for a year end rally? I will be :-)

All imo
DYOR

[cwa1] 06/8/2021 11:43

Glad I topped up the other day, as mentioned above. Hoping that this volume has taken out any loose holders/overhangs that have been holding the share price back. Fingers crossed

[sphere25] 06/8/2021 10:52

Thank you Barnesian. Good post yourself.

There are further blocks hitting the books with a 183k and a 160k mopped up at 125.5p. Total volume now at at a significant 1.3m for MBH. Someone is definitely buying in size at these levels.

Dived in for a few, hard to ignore the action here. I think it is has fallen too far and these folk buying in size are helping to clear out the sellers. It is an illiquid one so it will take a discount to get rid of the shares, but with the level of demand down here, it could be close to a bottom.

Results on the 7th September.

All imo
DYOR

[barnesian] 06/8/2021 10:26

Sphere25 - excellent analysis. More upside than downside I think in the shorter term.

Longer term, this is a well managed, debt free company with a premium product in a market where demand exceeds supply and is likely to for some time. It has also had a progressive dividend policy in the past.

Questions I ask myself:
* Is future growth limited by capacity? If so, what can the company do about it?
* Is the company taking full advantage of the excess demand to raise prices and therefore margins and RoE?
* Will landfill increase in profitability?
* Will the company raise dividends faster than expected? It can afford to but I think it manages in the interests of all stakeholders including employees and customers. Where do investors rank?

Overall I rate the management of this company highly, and will continue to top up my holding on dips like this.

[sphere25] 06/8/2021 09:57

MBH close to a bottom? It is a long way off its highs.

Six market makers currently on the bid at 125p vs one on the offer at 126p and it looks like someone has met the selling pressure in picking up 350k (two blocks, possibly both sides of the trade) and 80k this morning. There are further decent amounts mopped up yesterday afternoon so a possible first sign that sellers are meeting their match here.

AGM statement:

"...firmly on track to meet full year expectations". That sounds like a forecast beat is coming, though in line at worse.

Possible opportunity here?

Let's see if there are further notable trades and whether it can form a bottom to benefit from.

All imo
DYOR

[cwa1] 03/8/2021 16:40

Respectable volume today