Michelmersh Brick Holdings PLC · LSE:MBH
Michelmersh Brick — H1 2018 Earnings Presentation
37 slides from Michelmersh Brick's earnings presentation, 2018
Slide 1: Interim Results Presentation 2018
INTERIM RESULTS PRESENTATION 2018
Slide 2: Disclaimer
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 security and should not be consider
Slide 3: Presentation Team: Britain's Brick Specialist
Presentation Team Frank Hanna – Joint CEO Stephen Morgan – Group Finance Director BRITAIN’S BRICK SPECIALIST Michelmersh strives to be a well-invested, long-term, sustainable and environmentally responsible business, dedicated to delivering quality products to its long-term customer base. The Group
Slide 4: Financial Highlights H1 2018
Financial Highlights H1 2018 TURNOVER GROSS MARGIN UNDERLYING EBIT 43% 4.8% 70% UNDERLYING EBITDA UNDERLYING PBT UNDERLYING EPS 87% 57% 60% INTERIM DIVIDEND CASHFLOW FROM OPERATIONS 51% 135% 3
Slide 5: Corporate Highlights H1 2018
Corporate Highlights H1 2018 ▪ Full operational integration of the Carlton plant ▪ Successful restructure of operations at the Michelmersh plant ▪ Strong, balanced forward order book into Q1 2019 – 10.5% ahead of H1 2017 ▪ Contract signed for Carlton project targeting enhanced efficiency & output ▪
Slide 6: Michelmersh Brick Holdings plc
Michelmersh Brick Holdings plc We are not the market....we ensure the right volume of the right product for the right sector ▪ Manufacturer of diverse premium brick product – 100m+ ▪ Three lifetime revenue sources – bricks, landfill, investment land ▪ Margin focus, not market share ▪ Market leading
Slide 7: Award Winning
Award Winning Enhancing the built environment BRICK AWARDS 2017 BRICK AWARDS 2017 RIBA AWARDS 2018 NLA AWARDS 2018 ▪ Best Urban Regeneration ▪ RIBA London Award 2018 ▪ New London Architecture Award ▪ Large Housing Development ▪ RIBA National Award 2018 ▪ British Construction Industry Award ▪ BDA Sup
Slide 8: Income Statement H1 2018
Income Statement H1 2018 UNDERLYING STATUTORY FULL YEAR ADJS 1 H1 2017 H1 2018 H1 2018 2017 £M £M £M £M £M Turnover 23.1 23.1 16.2 37.9 Gross profit 9.4 9.4 5.8 13.4 Gross margin 40.4% 40.4% 35.6 35.3% Central costs (5.3) 0.9 (6.3) (3.4) (8.6) Other income 0.1 0.1 - - Operating profit 4.1 3.2 2.4 4.
Slide 9: Balance Sheet June 2018
Balance Sheet 30 June 2018 2018 2017 2017 31 DEC 30 JUNE 31 DEC £M £M £M Intangible fixed assets 23.5 23.7 24.1 Tangible fixed assets 51.5 50.4 52.6 Net working capital 11.9 8.7 8.8 Net (debt)/cash (18.1) (20.7) (17.5) Deferred tax (8.5) (5.5) (8.6) NET ASSETS 60.1 56.6 59.4 NAV per share 69.7 p 65.
Slide 10: Fixed Asset Summary 2018
Fixed Asset Summary 2018 Strong asset base FIXED ASSETS AT 31 DECEMBER 2017 LANDHOLDINGS (ACRES) MINERAL RESERVES 3% MICHELMERSH PLANT AND 30 BLOCKLEYS MACHINERY 80 27% FRESHFILED LANE 142 CARLTON 93 LANDFILL 1% CHARNWOOD 32 LAND AND BUILDINGS 69% FIXED ASSETS AT 31 DECEMBER 2017 TELFORD CARLTON CHA
Slide 11: Cash Flow Summary H1 2018
Cash Flow Summary H1 2018 H1 2018 H1 2017 Full year 2017 £m £m £m Net cash generated by operations 2.7 1.1 6.9 Tax paid (0.9) (0.4) (1.8) Interest paid (0.3) - (0.3) Purchase of property, plant and equipment (0.3) (0.3) (1.0) Proceeds of sale of investments/fixed assets - 2.7 2.8 Acquisition of Carl
Slide 12: UK Brick Manufacturing – Current Trends
UK Brick Manufacturing – Current Trends Logical market – market equilibrium 2017 AND 2018 CUMULATIVE OUTPUT AND INDUSTRY BRICK STOCKS (MILLION) EXCESS OVER OUTPUT 700 2500 50 600 CUMULATIVE 000 UNITS CUMULATIVE 000 UNITS 2000 0 500 1500 -50 400 1000 -100 300 500 -150 200 0 -200 100 JAN FEB MAR APR M
Slide 13: UK Brick Manufacturing – Market
UK Brick Manufacturing – Market UK BRICK MANUFACTURERS MARKET SHARE UK BRICK WORKS OTHERS MICHELMERSH 3% 5% 20 19 18 16 FORTERRA 28% 14 WIENERBERGER 21% 12 10 10 10 9 8 6 5 4 2 0 IBSTOCK WIENERBERGER FORTERRA MICHELMERSH OTHERS IBSTOCK 43% Source: Published statistics and management estimates ▪ UK b
Slide 14: Market Fundamentals
Market Fundamentals UK Housing Dynamics STRONG DEMAND FOR NEW HOUSING ▪ Continued shortage of new housing from long-term underbuilding ▪ Mortgage availability remains good ▪ Government committed to increasing housing supply ▪ Supportive Government policies (Help to Buy) remain in place MAJOR UK POLI
Slide 15: Michelmersh Brick Holdings – Outlook
Michelmersh Brick Holdings – Outlook We are not the market… we ensure the right volume of the right product for the right sector INDUSTRY ▪ Continued constrained market capacity ▪ Barriers to entry ▪ Continued demand for residential development and latent RMI market MICHELMERSH ▪ Positive outlook –
Slide 16: Appendices
APPENDICES
Slide 17: Company Overview
Company Overview ▪ AIM listed group, current market cap circa £75m ▪ Operates five active brickworks and produces 100+ million bricks ▪ The fourth largest manufacturer of bricks (by volume) in the UK, with a 5.5% market share ▪ Seven market leading brands ▪ Market leader in the premium sector ▪ Empl
Slide 18: The case for Brickwork
The case for Brickwork Why Brick is the UK’s external cladding material of choice DEVELOPER/RMI/SPECIFIERS END USER/CUSTOMERS/CLIENTS ▪ Low cost & strong value at point of use ▪ Low Maintenance/low cost of ownership ▪ Forgiving of tolerance ▪ Durability ▪ Suits UK vernacular ▪ Aesthetics ▪ Favoured
Slide 19: Company Overview: Business Integration Track Record
Company Overview Proven track record of business integration and cross selling 1997 Group established Acquired Dunton Brothers and Michelmersh Brick & Tile 1999 Acquired Charnwood Forest Brick 2000 Acquired Blockleys Brick 2004 Admission to trading on AIM 2007 Competitive offer for Baggeridge Brick
Slide 20: Why Michelmersh is Different
Why Michelmersh is Different Our positive impact on our built environment
Slide 21: Building Information Modelling
Building Information Modelling 20
Slide 22: New Products
New Products @ MICHELMERSH OXBRIDGE YELLOW MULTI Secateplesonk @ MICHELMERSH Britain's Brick Specialists
Slide 23: Market Initiatives
Market Initiatives @ MICHELMERSH Carlton” + Improved avaitatiity ity 20 mix packs of 6B 73mm prcucts ik colours Red, Buff Grown Weathered & Mult 1 Teste, Dragwire, Smooth & Textured fin’shes Maintain sens'ble stock levels of a wide produc? range a ims 9 yar Price acuartage tor stockie“s MIX by MICHE
Slide 24: Urban Regeneration: Trafalgar Place
Urban Regeneration Trafalgar Place 23
Slide 25: New Apartments: Kidbrooke Village
New Appartments Kidbrooke Village 24
Slide 26: Social Housing: Dujardin Mews
Social Housing Dujardin Mews 25
Slide 27: Aspirational Client Build: Octagon
Aspirational Client Build Octagon 26 26
Slide 28: Housing: Blue Ball Hill
Housing Mes era pecs Blue Ball Hill
Slide 29: Education Sector: Dunaskin Student Accommodation
Education Sector Dunaskin Student Accomodation 28
Slide 30: Health Care: Evelina Hospital
Health Care Evelina Hospital – Ronald McDonald House 29
Slide 31: Public Services: Nottingham Fire Station
Public Services Nottingham Fire Station 30
Slide 32: Local Authority: Riverside
Local Authority Riverside 31
Slide 33: Preserving Britain's Prestigious Buildings
Preserving Britain’s Prestigious Buildings 32
Slide 34: Capital Projects – Improving efficiency & output
Capital Projects – Improving efficiency & output 33
Slide 35: Biographies
Biographies Frank Hanna, Joint CEO Frank Hanna has over 25 years of brick industry experience. Frank joined Freshfield Lane Brickworks Limited ("FLB") in 1991 having formerly worked for Lesser D&B and Hanson Brick Ltd. Frank was appointed to the Board of FLB in 1996 as sales and technical director b
Slide 36: Biographies – Non-executive Directors
Biographies – Non-executive Directors Martin Warner, Chairman Martin formed MBH with Eric Gadsden in 1997 and served as Chief Executive and subsequently non-executive Chairman from May 2017. Martin is a Fellow of the Royal Institution of Chartered Surveyors, a member of the Audit and Remuneration Co
Slide 37: Michelmersh contact details
@ MICHELMERSH Britain's Brick Specialists Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 9310022 www.mbhplc.co.uk
Michelmersh Brick Holdings — H1 2018 Earnings Presentation on 6ix