Michelmersh Brick Holdings Plc · LSE:MBH
Michelmersh Brick — FY2024 Earnings Presentation
38 slides from Michelmersh Brick's earnings presentation, March 2025
Slide 1: 2024 Full Year Results
Michelmersh Full Year Results 2024 2024 Full Year Results Ice Factory, London
Slide 2: Disclaimer
Michelmersh Full Year Results 2024 Disclaimer ▪ The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in an
Slide 3: Presentation Team
Michelmersh Full Year Results 2024 Presentation Team Britain’s Brick Specialist Peter Sharp Chief Executive Officer Michelmersh strives to be a well-invested, long term, Ryan Mahoney sustainable and environmentally responsible business Chief Financial Officer dedicated to delivering quality products
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Full Year Results 2024 Michelmersh Brick Holdings plc Premium brick and building products manufacturer operating throughout the UK and Benelux regions Lifetime revenue Annual Capacity cycle 120m+ • Bricks Manufacturer of diverse premium brick products • Prefabricated brick components • L
Slide 5: Commercial strategy drives resilience
Michelmersh Full Year Results 2024 Commercial strategy drives resilience Strong Core Markets Strong Industry Relationships Extensive Premium Product • Broad product portfolio deliberately • Collaborative distribution model Portfolio targeting a diverse range of end underpinned by length and depth of
Slide 6: A Clear Strategy to Target Sustainable Long Term Growth
Michelmersh Full Year Results 2024 Michelmersh - A Clear Strategy to Target Sustainable Long Term Growth Guided by a defined growth strategy, the Group leverages its premium market presence, resilient earnings, and diverse customer base to generate stable free cash flow and earnings 7 8 5 6 3 4 1 2
Slide 7: 2024 Highlights
Michelmersh Full Year Results 2024 2024 Highlights Resilient performance; well positioned for market recovery ▪ Revenue of £70.1m, down 9.3% (FY23: £77.3m), reflective of product mix and a highly competitive pricing environment ▪ The resilient results in the context of a c.30% decline in Uk brick de
Slide 8: 2024 Operational Highlights
Michelmersh Full Year Results 2024 2024 Operational Highlights ▪ Core and consistent discipline of maintaining a quality forward order book and diverse end markets supported by order intake running ahead of full manufacturing capacity throughout the year ▪ Despatch volumes broadly stable over the la
Slide 9: 2024 Sustainability Highlights
Michelmersh Full Year Results 2024 2024 Sustainability Highlights Our goal is always to reduce, then seek alternatives and finally offset any remaining carbon emissions ▪ Sustainability remains a focus for incremental positive and proactive change for our business ▪ During the year, the Group contin
Slide 10: Financial Review
Michelmersh Full Year Results 2024 Financial Review Salvation Army HQ, London 9
Slide 11: 2024 Financial Highlights
Michelmersh Full Year Results 2024 2024 Financial Highlights FY23 Comparative Revenue Gross Margin Adjusted Operating Profit £70.1m 35.8% £10.1m £77.3m 38.9% £13.7m Adjusted Cashflow from EBITDA Profit Before Tax operations £14.0m £8.0m £10.2m £17.8m £12.5m £13.6m Basic EPS Adjusted EPS NAV per shar
Slide 12: Track record of resilience against macro headwinds
Michelmersh Full Year Results 2024 Track record of resilience against macro headwinds given 30% decline in brick despatches from 2022 Michelmersh’s premium product offering and operational excellence has delivered resilient financial performance Adjusted EBITDA (£m) Adj. EBITDA 23.6% 24.7% 24.4% 23.
Slide 13: Income Statement
Michelmersh Full Year Results 2024 Income Statement Resilient performance in 2024 Adjusted Adjusted Change FY24 FY23 £M £M Revenue 70.1 77.3 (9.3%) Gross profit 25.1 30.1 (16.6%) Gross margin 35.8% 38.9% (3.1%) Central costs1 (15.0) (16.4) 8.5% Adjusted operating profit1 10.1 13.7 (26.3%) Adjusted E
Slide 14: Balance Sheet
Michelmersh Full Year Results 2024 Balance Sheet Strong balance sheet position underpins financial resilience and capital allocation flexibility FY24 FY23 £M £M Intangible fixed assets 22.6 23.9 Tangible fixed assets * 69.3 63.3 Net working capital 16.6 11.4 Net cash 6.0 11.0 Lease liability (2.3) (
Slide 15: Cash Flow
Michelmersh Full Year Results 2024 Cash Flow Fundamental underlying cash generating ability in the business FY24 FY23 £M £M Net cash generated by operations 10.2 13.6 Tax paid (2.3) (2.8) Interest received/(paid) (0.2) 0.1 Purchase of property, plant and equipment (5.6) (3.1) Proceeds from land sale
Slide 16: Capital Allocation Framework
Michelmersh Full Year Results 2024 Capital Allocation Framework A balanced capital allocation strategy for sustainable growth and returning value to shareholders Capital investments to deliver strategy Focused annual organic capex programme • Maintaining well invested and efficient manufacturing sit
Slide 17: Strong Operational Net Cash Profile
Michelmersh Full Year Results 2024 Strong Operational Net Cash Profile Strong Group cash position of £6.0m and committed undrawn RCF of £20m underpin financial resilience and capital allocation framework 2022 2017 Carlton 2019 Floren FabSpeed Acquisition Acquisition Acquisition 10 2.0 5 EBITDA:Debt
Slide 18: Sector Review
Michelmersh Full Year Results 2024 Sector Review Heathy Wood, West Sussex 17
Slide 19: Supportive UK Housing Dynamics
Michelmersh Full Year Results 2024 Supportive UK Housing Dynamics The Group benefits from an attractive market with supportive structural demand dynamics, UK government policy focused on increasing housebuilding above historic norms and bricks being the RMI market’s material of choice • Critical sho
Slide 20: UK Brick Manufacturing – Current Trends
Michelmersh Full Year Results 2024 UK Brick Manufacturing – Current Trends 30% contraction in construction sector activity since 2022 Production, Deliveries and Stock Movement Dec 24 vs Dec 23 (BIS) 1,800 Freshfield Lane Products Hampshire Stock Plain Red 1,600 260 Inventory Movement (millions) Bric
Slide 21: 2024 Market Structure
Michelmersh Full Year Results 2024 2024 Market Structure UK brick manufacturing highly concentrated UK manufactured brick – 2024 Market Share OTHERS 3% MICHELMERSH 7% FORTERRA 28% WIENERBERGER 2024 UK brick consumption 21% c. 1.7 Billion (down from 2.5 Billion FY22) (c. 1.4 Billion UK despatched, IB
Slide 22: Outlook
Michelmersh Full Year Results 2024 Outlook Industry • Critical shortage of UK residential and social housing and very supportive new Government • Brick continues to be the façade material of choice • Construction activity subdued due to consumer sentiment and caution • Capital intensive and complex
Slide 23: Appendix
Michelmersh Full Year Results 2024 Appendix Theatre Royal, Brighton 22
Slide 24: Diversified clay offering with bricks, paving and pre-fabricated products
Michelmersh Full Year Results 2024 Diversified clay offering with bricks, paving and pre-fabricated products 110+ different types of bricks with a diverse portfolio of other products offered Brick Products Pre-Fabricated Products Traditional brick-making method Prefab Chimneys Prefab Arches operat
Slide 25: Experienced management team with expertise in clay products
Michelmersh Full Year Results 2024 Experienced management team with expertise in clay products Michelmersh’s accomplished management team has a track record of consistent excellence through leveraging their breadth of expertise Outstanding and Experienced Operational Team Michelmersh UK FabSpeed & F
Slide 26: Sustainability
Michelmersh Full Year Results 2024 Sustainability Shaping Genuine Sustainability The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degra
Slide 27: Interim Results 2022 / Full Year Results 2004
Michelmersh Interim Results 2022 Michelmersh Full Year Results 2004 26
Slide 28: Hybrick – The world's first 100% hydrogen fired clay bricks
Michelmersh Science Museum, Full Year Results 2024 London Michelmersh is proud to announce Hybrick – The world’s first 100% hydrogen fired clay bricks. 27
Slide 29: Education Sector
Michelmersh Full Year Results 2024 Education Sector STEAMhouse, Birmingham 28
Slide 30: Public
Michelmersh Full Year Results 2024 Public Salvation Army Territorial HQ, & Wells Street, London 29
Slide 31: Public
Michelmersh Full Year Results 2024 Public Theatre Royal, Brighton 30
Slide 32: Prefabrication
Michelmersh Full Year Results 2024 Prefabrication Nansledan, Newquay & Archerfield, East Lothian 31
Slide 33: Modern Living
Michelmersh Full Year Results 2024 Modern Living Winkworth Meadow, Guildford & Marchwood House, Berkshire 32
Slide 34: Urban Regeneration
Michelmersh Full Year Results 2024 Urban Regeneration The BoTree Hotel, London 33
Slide 35: Urban Regeneration
Michelmersh Full Year Results 2024 Urban Regeneration Norton Folgate, London 34
Slide 36: Large Volume Housing Developments
Michelmersh Full Year Results 2024 Large Volume Housing Developments Millwood Designer Homes, Kent & Ashcroft Place, Surrey 35
Slide 37: Large Volume Housing Developments
Michelmersh Full Year Results 2024 Large Volume Housing Developments Harrow Road & Noele Gordon House, London 36
Slide 38: Michelmersh Full Year Results 2024
Michelmersh Full Year Results 2024 Landsdowne Place, Freshfield Lane Danehill Dublin Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk 37
Michelmersh Brick Holdings — FY2024 Earnings Presentation on 6ix