Michelmersh Brick Share Discussion Threads

[barnesian] 06/9/2022 07:47

Very positive. Better than expected!

[m12rtn] 06/9/2022 07:46

No too bad as they are the best yet.

On a positive note, this is probably recession proof.

On a negative note, not general stock market proof, so will move with the herd.

But at least the results are good with the world being in the Sh!t for the next 2 years.

[masurenguy] 06/9/2022 07:43

Half Year Results for the six months ended 30 June 2022

Positive start to 2022, with trading performance in the first half ahead of record 2021 period

-- Resilient end market fundamentals expected to continue from broad customer base

-- Strong order book for the first half, with comparable and well-balanced forward order book for the second half of 2022

-- Consistent operational cash generation supported capital investment focused on production efficiency and incremental output improvement

-- Portfolio price increase implemented on 1 July 2022 to mitigate ongoing elevated inflation rates

-- Group cash of GBP9.9m and undrawn GBP20m borrowing facility underpin financial resilience, strategic optionality and flexibility to pursue acquisition opportunities

-- Declaration of interim dividend of 1.30 pence (+13% on H121) demonstrates commitment to progressive dividend policy and resilient outlook

Outlook

Our well-balanced forward order book, resilient end market demand and anticipated margin improvement in the second half keeps us on track to meet full year expectations

Commenting on the results, Martin Warner, Chairman of Michelmersh Brick Holdings PLC, said: "The Group has executed an excellent first half, culminating in record revenue and profit for the period. We have now entered the second half with a well-balanced forward order book, comparable with H2 2021, and continue to see encouraging levels of order intake from our loyal customers across our diverse end markets. Whilst demand for bricks remains high, the Group is closely monitoring the impact of elevated inflation and the volatile utility markets so it can react immediately to mitigate these headwinds. The Group continues to focus on delivering an excellent product and customer service and with the resilient fundamentals of our business we remain on track to meet full year expectations."

[1yellowjersey] 02/9/2022 15:17

MBH holding a retail investor presentation, followed by a Q&A session on Thursday, 08 September at 15:00(BST).

[rbewes] 15/8/2022 18:08

Michelmersh Brick Holdings PLC Block Listing Return.

That should be brick listing return.

[sphere25] 29/7/2022 17:22

It does look like this is due at least an oversold technical bounce. Is the market waiting for the update before some form of bullish bounce like IBST, FORT and now BRCK breaking higher or will it begin to bounce with them?

Some notable activity here on Wednesday with blocks of 518k, 508k and 328k mopped up by buyers in size at around that 86p mark. That was followed by 200k mopped up yesterday at 86p.

Clearly the bulls are trying to form at least a floor here by clearing out sellers. If they keep sitting there buying out the sellers in that sort of size, the bounce will be on.

We are almost conditioned at present to not expect too much of a bullish move, if any at all, but some decent activity here that might be worth keeping an eye on.

All imo
DYOR

[my retirement fund] 28/7/2022 11:51

It could certainly bounce on the back of their good fortune brought about by post covid projects resuming, however its early in the cycle of interest rate cycling and new build demand will have to fall as more people fall outside of the mortgage availability net. Things will look very different in 12-18 months time, the building trade will slow down and there's going to be a lot of overcapacity.

[m12rtn] 28/7/2022 10:33

Remember the share price is everything to you, BUT you are nothing to the share price!It will rise when ready, just as Ibst and fort are now.

[cwa1] 27/7/2022 08:00

IBST results look strong on a quick glance...

[my retirement fund] 26/7/2022 15:29

This looks set to fall further, had expected some rebound but clearly there is a constant and relentless selling pressure

[cwa1] 21/7/2022 08:02

Results from Brickability seem solid to me...

[my retirement fund] 18/7/2022 14:54

Managed to make a purchase at 90p today

[tole] 09/7/2022 07:03

https://www.fool.co.uk/2022/07/08/a-dividend-paying-penny-stock-i-think-is-too-cheap-to-ignore/

[barnesian] 07/7/2022 13:01

I understand that MBH have hedged forward their energy costs for more than a year ahead. As well as hedging, the key is how much the company can and will increase prices.

There was a 9.5% price increase last January and another planned July 9.5% increase just now. With energy costs hedged this may actually lead to an increase in margins.

I am reassured that this is a premium brick company with wealthier customers and selling into a market where demand exceeds supply.

With a PE ratio of around 10 and div yield of 4%+ I think this company is grossly undervalued.

NB The Stockopedia StockRank is 80.

[c3479z] 07/7/2022 12:15

doesn't mention the extent to which, if at all, they've hedged their energy costs into next calendar year,
also hints at an acquisition, plenty of capacity coming on elsewhere in next year or two.
nevertheless, brick cos are said to be cheap presently, easily selling all their production?

[barnesian] 07/7/2022 08:08

A reassuring trading update

[brummy_git] 12/5/2022 09:56

More 'baby & the bathwater' stuff across the building products sector.

With premium brick maker Michelmersh saying today that it is trading "in line with expectations".

All the commentary here.

www.linkedin.com/posts/paul-hill-a5994116_mbh-mbh-mbh-activity-6930439840136085504-ulOf?utm_source=linkedin_share&utm_medium=member_desktop_web

[cwa1] 29/4/2022 07:34

29(th) April 2022

Michelmersh Brick Holdings Plc

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

EBT Share Purchase

The Company was notified on 29(th) April 2022, by Truchot Trustees Limited, the trustee of the Michelmersh Brick Holdings Plc Employee Benefit Trust (the "EBT"), that the EBT had purchased 420,565 ordinary shares of 20p each in the Company ("Ordinary Shares") at an average price of 118.65 pence per Ordinary Share on 28(th) April 2022. These Ordinary Shares are to be held in the EBT and are intended to be used to satisfy the exercise of share options by employees. The EBT is a discretionary trust for the benefit of the Company's employees, including the Directors of the Company. The purchase of Ordinary Shares by the EBT has been funded from the Company's existing cash resources.

Following this transaction, a total of 420,565 Ordinary Shares are held by the EBT, representing approximately 0.4 per cent of the Company's total voting rights.

[makinbuks] 22/4/2022 11:52

Is housebuilding a big market for Michelmersh? I thought their bricks were more specialist

[tole] 21/4/2022 18:10

A dirt-cheap UK growth share to buy right now!I think this ultra-cheap UK share could be an excellent buy as demand for its products soars. Here's why I'd buy it today to hold for the next 10 years.Royston Wild?Published 21 April, 11:04 am BSTMBHI'm searching for the best cheap UK shares to buy for my stocks portfolio. Here's one I think could be an exceptional buy following strong industry newsflow today.Looking goodKey data streaming in from the British housing market shows that demand for homes continues to outstrip supply. So buying London's quoted housebuilders could be a good idea in this climate.However, another effective way to capitalise on these favourable conditions might be to invest in companies that manufacture building products.This is why I think investing in Michelmersh Brick Holdings (LSE: MBH) could be a great idea.The brilliant brickmakersOn Thursday, a couple of Michelmersh's industry rivals released news that confirms how fertile the trading landscape is right now.First up let's look at Ibstock, a cheap UK share that I own. It said today that "demand in both the new build housing and RMI [repair, maintenance and improvement] markets remains robust".Indeed, it said that stronger clay brick volumes would help full-year profits beat its prior estimates.Brickability Group also today upgraded its profits expectations following better-than-expected business in the last quarter. It noted that "the underlying long-term demand for UK housing remains robust" as does "demand for quality materials for the construction sector generally".The trend continuesThursday's excellent updates follow Michelmersh's own strong trading statement of late March. Then the company said that it expected "positive end market fundamentals expected to continue" in housing, commercial and RMI sectors. It saw revenues rise 11.2% year-on-year in 2021.Rising costs are a problem for the likes of Michelmersh as freight, energy and raw materials prices increase. This is a danger that both Brickability and Ibstock mentioned in Thursday's updates.Still, on balance, I think the potential benefits of me owning these stocks outweigh the risks.Given the wealth of good omens it's perhaps unsurprising that City analysts think Michelmersh's profits will continue to soar. Current consensus is for the brickmaker to record a 39% increase in annual earnings in 2022. At recent prices of 123p per share this leaves Michelmersh stock looking dirt-cheap too.A price-to-earnings growth (PEG) ratio below 1 suggests that a share could be undervalued by traders and investors. And right now Michelmersh trades on a valuation of just 0.4.An excellent long-term buyI won't be fooled into thinking that Michelmersh is just a great buy for today, however. I expect demand for its bricks to remain robust as housebuilding rates rise.The government has announced plans to "build at least a million more homes, of all tenures, over the next Parliament". The scale of Britain's homes shortage means that construction activity will need to remain robust well into the 2030s too.

[cwa1] 21/4/2022 08:17

Thought the read across from fairly positive results from IBST, here...



...might have helped the share price a little bit...but the ever contrarian markets think differently :-)