Michelmersh Brick Holdings PLC · LSE:MBH
Michelmersh Brick — H1 2020 Earnings Presentation
28 slides from Michelmersh Brick's earnings presentation, 2020
Slide 1: 2020 Interim Results
// MICHELMERSH Britain's Brick Specialists yeviem Interim Results =
Slide 2: Disclaimer
Michelmersh Interim Results 2020 1 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 Interim Results 2020 2 Presentation Team Frank Hanna Britain’s Brick Specialist Joint CEO Stephen Morgan Michelmersh strives to be a well-invested, long term, Group Finance Director sustainable and environmentally responsible business dedicated to delivering quality products to its long-
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Interim Results 2020 3 Michelmersh Brick Holdings plc 120m+ Strong core market Manufacturer of diverse RMI, Housing,Commercial, premium brick products UrbanRegeneration, Specification 3 lifetime Robust distribution revenue sources policy • Bricks Pioneering Select • Landfill Order Proces
Slide 5: Highlights – At a glance
Michelmersh Interim Results 2020 4 Highlights – At a glance ▪ Strong initial start to 2020 ▪ Robust management of COVID-19 crisis ▪ Swift and effective return to work after COVID-19 instigated suspension of operations ▪ Profitable 6 month period despite COVID-19 ▪ Cash preservation actions and tradi
Slide 6: H1 2020 Financial Highlights
Michelmersh Interim Results 2020 5 H1 2020 Financial Highlights 2019 Comparative Underlying Gross Turnover Margin Underlying EBIT £22.5m 38.8% £2.9m £27.2m 41.9% £5.4m Underlying Cashflow from EBITDA Reported PBT operations £4.4m £2.0m £2.9m £7.0m £4.0m £6.1m Basic EPS Underlying EPS NAV 1.74p 2.36p
Slide 7: COVID-19 – Update
Michelmersh Interim Results 2020 6 COVID-19 – Update ▪ Employee and stakeholder welfare and safety paramount ▪ Group response to virus was measured, swift and effective ▪ Orderly safe return to full production at all plants after 4 weeks ▪ Strong financial position - substantial cash and good covena
Slide 8: Inspired Architecture
Michelmersh Interim Results 2020 7 Inspired Architecture Brighton College Charterhouse Science Centre Hobhouse Court Caxton, Buckingham Green
Slide 9: Income statement 2020
Michelmersh Interim Results 2020 8 Income statement 2020 H1 2020/H1 UNDERLYING UNDERLYING H1 12 Months to 31 2019 H1 2020 2019 December 2019 £M £M £M Turnover -17.3% 22.5 27.2 53.5 Gross profit -23.7% 8.7 11.4 21.9 Gross margin -3.1% 38.8% 41.9% 40.9% Central costs1 -3.4% (5.8) (6.0) (11.8) Other in
Slide 10: Balance Sheet 30 June 2020
Michelmersh Interim Results 2020 9 Balance Sheet 30 June 2020 2020 2019 2019 30 June £M 30 June £M 31 Dec £M Intangible fixed assets 22.0 22.4 22.6 Tangible fixed assets 64.8 64.3 65.3 Net working capital 10.7 9.7 7.6 Net debt (6.5) (13.8) (6.3) Lease liability (1.1) (1.3) (1.2) Deferred Tax (11.9)
Slide 11: Cash Flow Summary 2020
Michelmersh Interim Results 2020 10 Cash Flow Summary 2020 H1 2020 H1 2019 £M £M Net cash generated by operations 2.9 6.1 Tax paid (0.8) (0.8) Interest paid (0.3) (0.3) Purchase of property, plant and equipment (0.6) (0.8) Debt repaid (1.2) (1.4) Dividend paid (0.8) (2.5) (0.8) 0.3 Proceeds of share
Slide 12: Debt Profile 2010 - 2020
Michelmersh Interim Results 2020 11 Debt Profile 2010 - 2020 25 7.0 6.0 20 5.0 15 4.0 EBITDA Multiple 3.0 £ million 10 2.0 5 1.0 - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H12020 -1.0 -5 -2.0 Net Debt Carlton Acqn Floren Acqn EBITDA Multiple
Slide 13: UK Brick Manufacturing – Current Trends
Michelmersh Interim Results 2020 12 UK Brick Manufacturing – Current Trends COVID-19 Impact on output and deliveries 2019 & 2020 Cumulative output and excess over output UK Brick Imports 2017-2020 (Source;BIS) (Source;BIS) 2500 80 2017 2018 2019 2020 Cumulative Output and Deliveries 2019 and TYD 202
Slide 14: Market Structure
Michelmersh Interim Results 2020 13 Market Structure UK brick manufacturers Market Share OTHERS 3% UK brick manufacturing highly concentrated MICHELMERSH 5% FORTERRA 28% WIENERBERGER 21% UK capacity c. 2.1billion Source: Published statistics and IBSTOCK 43% management estimates UK Brick works 16 (3)
Slide 15: Market Fundamentals
Michelmersh Interim Results 2020 14 Market Fundamentals UK Housing Dynamics Strong demand for new housing • Government commitment to construction as a weapon to re-ignite the economy • Post COVID-19 housing demand • Continued shortage of new housing from long-term underbuilding • Mortgage availabili
Slide 16: Outlook
Michelmersh Interim Results 2020 15 Outlook Industry • Continued constrained UK market capacity • Recent sector restructure leading to some plant closures • Complex barriers to entry • Continued demand for residential development and latent RMI market Michelmersh • Positive outlook – looking to capi
Slide 17: Appendices
Michelmersh Interim Results 2020 16 Appendices
Slide 18: Good corporate citizen Michelmersh Core Values - IRIS
Michelmersh Interim Results 2020 17 Good corporate citizen Michelmersh Core Values - IRIS The Group believes it has a corporate responsibility to contribute to charities across the country. Donating funds, food products, children’s toys, resources and a wealth of clay products to deserving instituti
Slide 19: Sustainability
Michelmersh Interim Results 2020 18 Sustainability Michelmersh Core Values 100% of UK products are supplied from factories certified under the BES 6001 Responsible Sourcing standard, ISO 14001 Environmental, ISO 50001 Energy and ISO 9001 Management Systems. 100% of Floren products are independently
Slide 20: Sustainability
Michelmersh Interim Results 2020 19 Sustainability Michelmersh Core Values Using modernised production methods that emphasise sustainable building solutions and adhere to the most stringent production requirements, Michelmersh 1152 solar panels All group sites operate Clay products have a Our local
Slide 21: Fixed Asset Summary H1 2020
Michelmersh Interim Results 2020 20 Fixed Asset Summary H1 2020 Strong asset base BLOCKLEYS, 80 16% PLANT FLOREN.BE, 120 OTHER 24% CARLTON, 93 MICHELMERS 19% H, 30 LANFDFILL 6% MINERAL CHARNWOOD, 32 FRESHFIELD LANE, 142 6% OPERATING 29% L&B Group Fixed Assets by Category Landholdings (Acres) 14,000.
Slide 22: Education Sector
Michelmersh Interim Results 2020 21 Education Sector Kingston University
Slide 23: Leisure Facilities
Michelmersh Interim Results 2020 22 Leisure Facilities Sports Centre, Solent University, Southampton
Slide 24: Quality New Homes
Michelmersh Interim Results 2020 23 Quality New Homes Llanberis, Tressillian Crescent, Wolverton Hall Folly
Slide 25: Commercial
Michelmersh Interim Results 2020 24 Commercial Bollo Lane & Blackfriars, Salford
Slide 26: Urban Regeneration
Michelmersh Interim Results 2020 25 Urban Regeneration Kingston University
Slide 27: Pre-fabricated panel systems
Michelmersh Interim Results 2020 26 Pre-fabricated panel systems University College London Hospital
Slide 28: Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH
27 Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
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