Michelmersh Brick Holdings Plc · LSE:MBH
Michelmersh Brick — FY2020 Earnings Presentation
32 slides from Michelmersh Brick's earnings presentation, 2021
Slide 1: 2020 Full Year Results
yeviem Full Year Results @ MICHELMERSH Britain's Brick Specialists =
Slide 2: Disclaimer
Michelmersh Full Year 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
Slide 3: Presentation Team
Michelmersh Full Year 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 lon
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Full Year 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 Proc
Slide 5: 2020 Financial Highlights
Michelmersh Full Year Results 2020 4 2020 Financial Highlights Robust return to form in H2, with a strong 2020 full year profit despite COVID-19 § Strong financial and operational performance during the year, despite COVID, which has continued into Q1 of 2021 § Turnover and Gross margin comparable t
Slide 6: 2020 Financial Highlights
Michelmersh Full Year Results 2020 5 2020 Financial Highlights 2019 Comparative Underlying Gross Turnover Margin Underlying EBIT £52.0m 41.3% £8.8m £53.5m 40.9% £10.3m Underlying Cashflow from EBITDA Reported PBT operations £12.3m £6.9m £12.9m £13.6m £10.4m £16.6m Underlying EPS Dividend NAV 6.28p 2
Slide 7: 2020 Operational Highlights
Michelmersh Full Year Results 2020 6 2020 Operational Highlights Robust return to form in H2, with a strong 2020 full year profit despite COVID-19 § COVID-safe status across all factories. All factories operating at full capacity § Completion of new Floren offices, welfare & technical testing buildi
Slide 8: Inspired Architecture
Michelmersh Full Year Results 2020 7 Inspired Architecture Brighton College Charterhouse Science Centre Hobhouse Court Caxton, Buckingham Green
Slide 9: Income statement 2020
Michelmersh Full Year Results 2020 8 Income statement 2020 12 Months to 31 12 Months to 31 December 2020 December 2019 £M £M Turnover 52.0 53.5 Gross profit 21.5 21.9 Gross margin 41.3% 40.9% Central costs1 (12.8) (11.8) Other income 0.1 0.2 Operating profit2 8.8 10.3 EBITDA 12.3 13.6 Finance expens
Slide 10: Balance Sheet December 2020
Michelmersh Full Year Results 2020 9 Balance Sheet 31 December 2020 2020 2019 31 Dec £M 31 Dec £M Intangible fixed assets 21.4 22.6 Tangible fixed assets 60.9 65.3 Net working capital 9.1 7.6 Net cash /(debt) 0.8 (6.3) Lease liability (0.8) (1.2) Deferred Tax (11.7) (11.9) NET ASSETS 79.7 76.1 NAV p
Slide 11: Cash Flow Summary 2020
Michelmersh Full Year Results 2020 10 Cash Flow Summary 2020 12 months ended 31 December 2020 2019 £M £M Net cash generated by operations 12.9 16.6 Tax paid (2.5) (2.1) Interest paid (0.7) (0.7) Purchase of property, plant and equipment (1.2) (2.4) 8.5 11.4 Loan drawn 3.0 5.1 Debt repaid (13.0) (2.0
Slide 12: Debt Profile 2010 - 2020
Michelmersh Full Year Results 2020 11 Debt Profile 2010 - 2020 25 6.0 20 5.0 15 4.0 EBITDA Multiple £ million 3.0 10 2.0 5 1.0 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - -5 -1.0 Net Debt Carlton Acqn Floren Acqn EBITDA Multiple
Slide 13: UK Brick Manufacturing – Current Trends
Michelmersh Full Year 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 2
Slide 14: Market Structure
Michelmersh Full Year 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 billion Source: Published statistics and IBSTOCK 43% management estimates UK Brick works 16 (3
Slide 15: Market Fundamentals
Michelmersh Full Year Results 2020 14 Market Fundamentals Government commitment to construction as a weapon to re-ignite the economy Government Initiatives • Stamp Duty holiday and Help to Buy extensions and Planning reforms • CPA forecast strong housing projections for 2021-22 • Market fundamentals
Slide 16: Outlook
Michelmersh Full Year Results 2020 15 Outlook Industry • Continued constrained UK market capacity • Industry stock at very low levels • Recent sector restructure leading to some plant closures • Complex barriers to entry • Continued demand for residential development with strong RMI market The Miche
Slide 17: Appendices
Michelmersh Full Year Results 2020 16 Appendices
Slide 18: Good corporate citizen Michelmersh Core Values - IRIS
Michelmersh Full Year 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 institu
Slide 19: Sustainability
Michelmersh Full Year Results 2020 18 Sustainability Road map to 2030
Slide 20: Sustainability
Michelmersh Full Year 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 loca
Slide 21: Fixed Asset Summary 2020
Michelmersh Full Year Results 2020 20 Fixed Asset Summary 2020 Strong asset base Other Plant BLOCKLEYS, 89 FLOREN.BE, 120 18% 24% Landfill MICHELMERSH, 30 CARLTON, 93 6% 18% Mineral CHARNWOOD, 32 FRESHFIELD LANE, 142 Operating L&B 6% 28% Group Fixed Assets by Category Landholdings (Acres) 12,000.00
Slide 22: COVID-19 – Update
Michelmersh Full Year Results 2020 21 COVID-19 – Update Employee and stakeholder welfare and safety paramount § Ensuring COVID-19 safe workplace status § Total Health and Safety review at all sites § New policy and procedures § Shift pattern changes encompassing social distancing § Visitor managemen
Slide 23: Education Sector
Michelmersh Full Year Results 2020 22 Education Sector Ibstock Place School, London
Slide 24: Volume Housing Developments
Michelmersh Full Year Results 2020 23 Volume Housing Developments Victoria House, Leeds & Clockworks, Manchester
Slide 25: BREEAM – sustainable ‘Excellent’ rating
Michelmersh Full Year Results 2020 24 BREEAM – sustainable ‘Excellent’ rating University of Winchester, Kirkholt Medical Centre, Solent University
Slide 26: Contemporary Homes
Michelmersh Full Year Results 2020 25 Contemporary Homes Tressillian Crescent, Woodcote House
Slide 27: Traditional Luxury Homes
Michelmersh Full Year Results 2020 26 Traditional Luxury Homes Wolverton Hall Folly, Hampton Place, Octagon Developments, Copsewood Drive, Cavalry Gardens, Aubery House, High Ridge
Slide 28: Commercial
Michelmersh Full Year Results 2020 27 Commercial Excelsior Works, RMHC Oxford, Rochester Riverside
Slide 29: Public
Michelmersh Full Year Results 2020 28 Public East Ham Civic Centre, Wendle Court Homeless Shelter, Caxton Buckingham Green
Slide 30: Off-site MMC - Urban Regeneration Projects
Michelmersh Full Year Results 2020 29 Off-site MMC - Urban Regeneration Projects Fruit and Wool Exchange, Spitalfields, London * MMC - Modern Methods of Construction
Slide 31: Off-site MMC - panel systems
Michelmersh Full Year Results 2020 30 Off-site MMC - panel systems University College London Hospital
Slide 32: Freshfield Lane, Danehill, Haywards Heath
31 Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
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