Michelmersh Brick Holdings Plc · LSE:MBH
Michelmersh Brick — FY2023 Earnings Presentation
38 slides from Michelmersh Brick's earnings presentation, March 2024
Slide 1: 2023 Full Year Results
Michelmersh Full Year Results 2023 2023 Full Year Results International Rugby Experience, Limerick
Slide 2: Disclaimer
Michelmersh Full Year Results 2023 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 2023 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 2023 Michelmersh Brick Holdings plc 120m+ 4 lifetime Manufacturer of diverse premium brick products revenue sources • Bricks 17.5m+ • Prefabricated brick Manufacturing capacity of components brick slips • Landfill • Investment land Strong core market Robust distribution
Slide 5: Michelmersh - A Clear Strategy to Target Sustainable Long Term Growth
Michelmersh Full Year Results 2023 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 6: 2023 Highlights
Michelmersh Full Year Results 2023 2023 Highlights Positive performance – earnings ahead of market expectations § Positive financial performance in 2023, with earnings for the year ahead of market expectations § Revenue of £77.3m (up 13.0%) and Gross Profit £30.1m (up 11.9%) (2022: £68.4m and £26.9m
Slide 7: 2023 Operational Highlights
Michelmersh Full Year Results 2023 2023 Operational Highlights § Diverse end markets continue to underpin performance in the year benefitting from broad customer base of new housing, commercial, architectural specification and RMI markets § Collaboration with distribution partners to deliver pricing
Slide 8: 2023 Sustainability Highlights
Michelmersh Full Year Results 2023 2023 Sustainability Highlights Our goal is always to reduce, then seek alternatives and finally offset any remaining carbon emissions § Positive incremental progress against our 2021 Sustainability report, which is monitored and measured by our Sustainability Group
Slide 9: Financial Review
Michelmersh Full Year Results 2023 Financial Review SteamHouse, Birmingham City University
Slide 10: 2023 Financial Highlights – earnings ahead of 2022
Michelmersh Full Year Results 2023 2023 Financial Highlights – earnings ahead of 2022 2022 Comparative Revenue Gross Margin Adjusted Operating Profit £77.3m 38.9% £13.7m £68.4m 39.4% £12.7m Adjusted Cashflow from EBITDA Profit Before Tax operations £17.8m £12.5m £13.6m £16.7m £11.4m £19.7m Basic EPS
Slide 11: Track record of consistent financial growth and resilience against macro headwinds
Michelmersh Full Year Results 2023 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.
Slide 12: Income Statement
Michelmersh Full Year Results 2023 Income Statement Positive performance in 2023, ahead of 2022 across all key financial metrics Adjusted Adjusted Change Like for Like 2023 2022 Change £M £M Revenue 77.3 68.4 13.0% 1.3% Gross profit 30.1 26.9 11.9% 2.2% Gross margin 38.9% 39.4% (0.5%) 0.6% Central c
Slide 13: Balance Sheet
Michelmersh Full Year Results 2023 Balance Sheet Strong balance sheet position underpins financial resilience and capital allocation flexibility 2023 2022 £M £M Intangible fixed assets 23.9 25.3 Tangible fixed assets * 63.3 65.9 Net working capital 11.4 4.5 Net cash 11.0 10.6 Lease liability (1.4) (
Slide 14: Cash Flow
Michelmersh Full Year Results 2023 Cash Flow Consistent quality of the fundamental cash generating ability of the business with adjusted EBITDA cash conversion of 76.4% 2023 2022 £M £M Net cash generated by operations 13.6 19.7 Tax paid (2.8) (1.7) Interest received/(paid) 0.1 (0.2) Purchase of prop
Slide 15: Strong Operational Cash Profile
Michelmersh Full Year Results 2023 Strong Operational Cash Profile Strong Group cash position of £11.0m and undrawn committed RCF of £20m underpin financial resilience and capital allocation flexibility 2017 Carlton 2019 Floren 2022 FabSpeed Acquisition Acquisition Acquisition 10 2.0 5 EBITDA:Debt R
Slide 16: Sector Review
Michelmersh Full Year Results 2023 Sector Review The Edge, Nottinghamshire
Slide 17: Why Michelmersh is Well-Positioned
Michelmersh Full Year Results 2023 Why Michelmersh is Well-Positioned Extensive Product Portfolio Strong Industry Relationships Premium Products • Broad product portfolio deliberately • Collaborative distribution model • Focus on core competencies and targeting a diverse range of end underpinned by
Slide 18: Supportive UK Housing Dynamics
Michelmersh Full Year Results 2023 Supportive UK Housing Dynamics The Group benefits from an attractive market with supportive structural demand dynamics, government policy focused on increasing housebuilding above historic norms and bricks being the RMI market’s material of choice • Critical shorta
Slide 19: UK Brick Manufacturing – Current Trends
Michelmersh Full Year Results 2023 UK Brick Manufacturing – Current Trends 30% contraction in construction sector activity led to inventory increases at 5 year high 2023 & 2022 Cumulative output and excess over output (Source: BIS) Production, Deliveries and Stock Movement British Library Internatio
Slide 20: 2023 Market Structure
Michelmersh Full Year Results 2023 2023 Market Structure 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 despatched, IB
Slide 21: Outlook
Michelmersh Full Year Results 2023 Outlook Industry • Critical shortage of UK residential and social housing • Brick continues to be the façade material of choice • Construction activity subdued due to consumer sentiment and caution • Capital intensive and complex barriers to entry Michelmersh • Div
Slide 22: Appendix
Michelmersh Full Year Results 2023 Appendix Brabazon, Bristol
Slide 23: Diversified clay offering with bricks, paving and pre-fabricated products
Michelmersh Full Year Results 2023 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 24: Experienced management team with expertise in clay products
Michelmersh Full Year Results 2023 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 25: Sustainability
Michelmersh Full Year Results 2023 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 26: Interim Results 2022
Michelmersh Interim Results 2022 Michelmersh Full Year Results 2023 26
Slide 27: SustainableBrick.com
Michelmersh Interim Results 2022 Michelmersh Full Year Results 2023 SustainableBrick.com 27
Slide 28: Hybrick – the world's first 100% hydrogen fired clay bricks
Michelmersh Full Year Results 2023 Michelmersh is proud to announce Hybrick™ – The world’s first 100% hydrogen fired clay bricks.. 28
Slide 29: Education Sector
Michelmersh Full Year Results 2023 Education Sector Eton College, Berkshire 29
Slide 30: Public
Michelmersh Full Year Results 2023 Public International Rugby Experience, Ireland & St. Lukes Church, Lancashire 30
Slide 31: Public
Michelmersh Full Year Results 2023 Public Black Country Living Museum, West Midlands. 31
Slide 32: Infrastructure
Michelmersh Full Year Results 2023 Infrastructure Woolwich Crossrail Station, London 32
Slide 33: Modern Living
Michelmersh Full Year Results 2023 Modern Living Sydenham Hill Gate (Grand Designs), London & Becontree Estate (Affordable Housing), London 33
Slide 34: Urban Regeneration
Michelmersh Full Year Results 2023 Urban Regeneration West End Gate, Berkeley Homes, London 34
Slide 35: Urban Regeneration
Michelmersh Full Year Results 2023 Urban Regeneration Queen’s Quay, Glasgow & Shepherd’s Quay, Newcastle 35
Slide 36: Large Volume Housing Developments
Michelmersh Full Year Results 2023 Large Volume Housing Developments The Edge, Nottinghamshire 36
Slide 37: Large Volume Housing Developments
Michelmersh Full Year Results 2023 Large Volume Housing Developments Cooper Court, Berkshire 37
Slide 38: Michelmersh Full Year Results 2023
Michelmersh Full Year Results 2023 Brabazon, Bristol Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
Michelmersh Brick Holdings — FY2023 Earnings Presentation on 6ix