Michelmersh Brick Holdings Plc · LSE:MBH
Michelmersh Brick — H1 2024 Earnings Presentation
39 slides from Michelmersh Brick's earnings presentation, September 2024
Slide 1: 2024 Interim Results
Michelmersh Interim Results 2024 2024 Interim Results Greycoat Stores, London
Slide 2: Disclaimer
Michelmersh Interim 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 any
Slide 3: Presentation Team
Michelmersh Interim 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 t
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Interim Results 2024 Michelmersh Brick Holdings plc Premium brick and building products manufacturer operating throughout the UK and Benelux regions Lifetime revenue 120m+ cycle Manufacturer of diverse • Bricks premium brick products • Prefabricated brick components 17.5m+ Manufacturing
Slide 5: Commercial strategy drives resilience
Michelmersh Interim Results 2024 Commercial strategy drives resilience Strong Core Markets Strong Industry Extensive Premium • Broad product portfolio Relationships Product Portfolio deliberately targeting a diverse • Collaborative distribution model • Focus on core competencies and range of end und
Slide 6: A Clear Strategy to Target Sustainable Long Term Growth
Michelmersh Interim 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 Qu
Slide 7: Capital Allocation Framework
Michelmersh Interim 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 sites
Slide 8: 2024 Interim Highlights
Michelmersh Interim Results 2024 2024 Interim Highlights Resilient performance delivered within very challenging construction sector Revenue of £35.4m, down 15.7% (HY23: £42.0m), in the context of a c.40% decline in UK brick volumes over the last 18 months, proving the resilience of our business m
Slide 9: 2024 Interim Operational Highlights
Michelmersh Interim Results 2024 2024 Interim Operational Highlights Diverse end markets continue to underpin performance in the period benefitting from broad customer base of new housing, commercial, architectural specification and RMI markets Decrease in despatch volumes in line with managemen
Slide 10: 2024 Interim Sustainability Highlights
Michelmersh Interim Results 2024 2024 Interim 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 period, the Grou
Slide 11: Financial Review
Michelmersh Interim Results 2024 Financial Review Wycliffe Village, Buckinghamshire 11
Slide 12: 2024 Interim Financial Highlights
Michelmersh Interim Results 2024 2024 Interim Financial Highlights HY23 Comparative Revenue Gross Margin Adjusted Operating Profit £35.4m 36.2% £5.3m £42.0m 36.9% £6.8m Adjusted Cashflow from EBITDA Profit Before Tax operations £7.2m £4.1m £0.9m £8.7m £6.1m £7.6m Basic EPS Adjusted EPS NAV per share
Slide 13: Track record of consistent financial growth and resilience against macro headwinds
Michelmersh Interim Results 2024 Track record of consistent financial growth and resilience against macro headwinds Michelmersh’s premium product offering and operational excellence has delivered sustained earnings expansion and cash flow generation Adjusted EBITDA (£m) Adj. EBITDA 25.4% 23.6% 24.7%
Slide 14: Interim Income Statement
Michelmersh Interim Results 2024 Interim Income Statement Resilient performance in the first half of 2024 Adjusted Adjusted Change HY24 HY23 £M £M Revenue 35.4 42.0 (15.7%) Gross profit 12.8 15.5 (17.4%) Gross margin 36.2% 36.9% (0.7%) Central costs1 (7.5) (8.7) 13.8% Adjusted operating profit1 5.3
Slide 15: Balance Sheet
Michelmersh Interim Results 2024 Balance Sheet Strong balance sheet position underpins financial resilience and capital allocation flexibility HY24 HY23 £M £M Intangible fixed assets 23.3 24.6 Tangible fixed assets * 64.8 65.0 Net working capital 16.0 5.0 Net cash 4.1 11.8 Lease liability (1.9) (1.1
Slide 16: Cash Flow
Michelmersh Interim Results 2024 Cash Flow Fundamental underlying cash generating ability in the business HY24 HY23 £M £M Net cash generated by operations 0.9 7.6 Tax paid (1.6) (1.2) Interest received/(paid) - - Purchase of property, plant and equipment (2.5) (2.2) Proceeds from land sale - 1.1 Abo
Slide 17: Strong Operational Net Cash Profile
Michelmersh Interim Results 2024 Strong Operational Net Cash Profile Strong Group net cash position of £4.1m and committed RCF of £20m underpin financial resilience and capital allocation flexibility 2022 2017 Carlton 2019 Floren FabSpeed Acquisition Acquisition Acquisition 10 2.0 5 1.0 EBITDA:Debt
Slide 18: Sector Review
Michelmersh Interim Results 2024 Sector Review Lansdowne Place, Dublin 18
Slide 19: Supportive UK Housing Dynamics
Michelmersh Interim Results 2024 Supportive UK Housing Dynamics The Group benefits from an attractive market with supportive structural demand dynamics, new Labour government policy focused on increasing housebuilding above historic norms and bricks being the RMI market’s material of choice • Critic
Slide 20: UK Brick Manufacturing – Current Trends
Battersea Power Station Michelmersh Interim Results 2024 UK Brick Manufacturing – Current Trends 40% contraction in construction sector activity over the last 18 months led to inventory increases at 5 year high Production, Deliveries and Stock Movement HY Jun 24 vs HY Jun 23 (BIS) Woolwich Crossrail
Slide 21: 2024 Market Structure (2023 data)
Michelmersh Interim Results 2024 2024 Market Structure (2023 data) UK brick manufacturing highly concentrated UK manufactured brick – 2023 Market Share OTHERS 3% MICHELMERSH 6% FORTERRA 28% WIENERBERGER 2023 UK brick consumption 21% c. 1.7 Billion (down from 2.5 Billion FY22) (c. 1.3 Billion UK desp
Slide 22: Outlook
Michelmersh Interim 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 ba
Slide 23: Appendix
Michelmersh Interim Results 2024 Appendix Manor + Braganza, London 23
Slide 24: Diversified clay offering with bricks, paving and pre-fabricated products
Michelmersh Interim 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 operated
Slide 25: Experienced management team with expertise in clay products
Michelmersh Interim 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 & Flo
Slide 26: Sustainability
Michelmersh Interim 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 degrada
Slide 27: Michelmersh Interim Results 2024
Michelmersh Interim Results 2022 Michelmersh Interim Results 2024 27
Slide 28: SustainableBrick.com
Michelmersh Interim Results 2022 Michelmersh Interim Results 2024 SustainableBrick.com 28
Slide 29: Hybrick – the world's first 100% hydrogen fired clay bricks
Michelmersh Interim Results 2024 Michelmersh is proud to announce Hybrick – The world’s first 100% hydrogen fired clay bricks. 29
Slide 30: Education Sector
Michelmersh Interim Results 2024 Education Sector STEAMhouse, Birmingham 30
Slide 31: Public
Michelmersh Interim Results 2024 Public EZ Sports Facility, Blackpool & Greycoat Stores, London 31
Slide 32: Public
Michelmersh Interim Results 2024 Public The BoTree Hotel, London 32
Slide 33: Infrastructure
Michelmersh Interim Results 2024 Infrastructure Ouse Valley Viaduct, Haywards Heath 33
Slide 34: Modern Living
Michelmersh Interim Results 2024 Modern Living Perforated House, London & Harbour House, Sussex 34
Slide 35: Urban Regeneration
Michelmersh Interim Results 2024 Urban Regeneration The Engine Yard, Edinburgh 35
Slide 36: Urban Regeneration
Michelmersh Interim Results 2024 Urban Regeneration Norton Folgate, London & Kangaroo Works, Sheffield 36
Slide 37: Large Volume Housing Developments
Michelmersh Interim Results 2024 Large Volume Housing Developments Heathy Wood, West Sussex 37
Slide 38: Large Volume Housing Developments
Michelmersh Interim Results 2024 Large Volume Housing Developments Huntley Wharf, Reading 38
Slide 39: Michelmersh Interim Results 2024
Michelmersh Interim Results 2024 Kangaroo Works, Freshfield Lane Danehill Sheffield Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk 39
Michelmersh Brick Holdings — H1 2024 Earnings Presentation on 6ix