Michelmersh Brick Holdings (MBH)

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Michelmersh Brick Holdings MBH Logo

The specialist brick manufacturer and landfill company.

22-Jan-2018 – 88.5p – £72.1m – PER 10.8

Trading Update For The 12 Months To End December 2017 – In-line and “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”.

Interesting enough although the Net Debt (circa 30% of Mkt Cap) is a concern. I will remain Neutral for now but will dig a little deeper on this one.

10-May-2018 – 93.5p – £80.6m – PER 11.4

AGM Statement – In-line with significant growth versus 2017.

Still Neutral here but will be keen on seeing actual results (with an eye on ROCE and Operating Margin) – Revenue, Dividend and EPS forecasts look pretty impressive.

4-Sep-2018 – 86.5p – £74.7m – PER 10.5

Interim Results For The 6 Months To End June 2018 – Wow! Revenue up 43%, Underlying PBT up 57%, Underlying EPS up 60% and the Interim Dividend is up 51%. Confident of meeting FY expectations.

Looks really good and am tempted to take a position here. If I do not it will go on the Watchlist.

Subsequent note: Following further research it appears that EPS is forecast to fall in 2019E, I am now Neutral with an eye out for upgrades.

14-Jan-2019 – 76p – £66m – PER 9.8

Trading Update For The 12 Months To End December 2018 – Revenue and Profit to be in-line, Net Debt below forecasts.

I remain on the side-lines as the last forecasts I checked were for negative EPS growth in 2019E.

26-Mar-2019 – 88p – £81m – PER 12

Results For The 12 Months To End December 2018 – Revenue up 22% (to £46.3m), Gross Margin up from 35.4% to 38.9%, Basic EPS up 118% (5.8p), Dividend up 49% (3.2p for the year) and Net Debt is down from £17.5m to £12m. The current Order Book is 10.5% ahead of last time with new high value products introduced and recent acquisition now gives access to Europe.

I remain on the side-lines as the last forecasts I checked were for negative EPS growth in 2020E. Could be tempted here if those forecasts are revised.

14-May-2019 – 97p – £89m – PER 12.8

AGM Statement – Robust, confident FY will be in-line.

I still believe forecasts are for negative EPS growth in 2020E. Could be tempted here if those forecasts are revised.

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