Michelmersh Brick Holdings Plc · LSE:MBH
Michelmersh Brick — H1 2023 Earnings Presentation
36 slides from Michelmersh Brick's earnings presentation, Sep 5, 2023
Slide 1: 2023 Interim Results
Michelmersh Interim Results 2023 2023 Interim Results International Rugby Experience, Limerick
Slide 2: Disclaimer
Michelmersh Interim 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 any
Slide 3: Presentation Team
Michelmersh Interim Results 2023 Presentation Team Frank Hanna 1 Britain’s Brick Specialist Joint Chief Executive Officer Peter Sharp 1 Michelmersh strives to be a well-invested, long term, Joint Chief Executive Officer sustainable and environmentally responsible business dedicated to delivering qua
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Interim Results 2023 Michelmersh Brick Holdings plc 122m+ Strong core market Manufacturer of diverse Repair Maintenance and premium brick products Improvement (“RMI”), Housing,Commercial, Urban Regeneration, Specification 4 lifetime Robust distribution revenue sources policy • Bricks Pio
Slide 5: Highlights
Michelmersh Interim Results 2023 Highlights Positive first half performance and resilient outlook Positive first half of 2023, with resilient performance highlighting benefits of our diverse end markets Revenue of £42.0m (up 23.5%) and Gross Profit £15.5m (up 21.1%) (HY22: £34.0m and £12.8m) S
Slide 6: HY23 Financial Highlights
Michelmersh Interim Results 2023 HY23 Financial Highlights HY22 Comparative Revenue Gross Margin Adjusted Operating Profit £42.0m 36.9% £6.8m £34.0m 37.7% £6.2m Adjusted Cashflow from EBITDA Profit Before Tax operations £8.7m £6.1m £7.6m £8.1m £5.6m £8.0m Basic EPS Adjusted EPS NAV per share 5.00p 5
Slide 7: HY23 Operational Highlights
Michelmersh Interim Results 2023 HY23 Operational Highlights Positive performance in first half, with results for the year ahead of HY22 in all key adjusted financial metrics Diverse end markets continue to underpin performance in the year benefitting from broad customer base of new housing, com
Slide 8: HY23 Sustainability Highlights
Michelmersh Interim Results 2023 HY23 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 Interim Results 2023 Financial Review SteamHouse, 9 Birmingham City University
Slide 10: Income Statement
Michelmersh Interim Results 2023 Income Statement Positive first half performance in 2023, with adjusted results for the period ahead of 2022 Adjusted Adjusted Change Organic HY23 HY22 Change £M £M Revenue 42.0 34.0 23.5% 10.3% Gross profit 15.5 12.8 21.1% 11.0% Gross margin 36.9% 37.7% (0.8%) 0.2%
Slide 11: Balance Sheet
Michelmersh Interim Results 2023 Balance Sheet Strong balance sheet position underpins financial resilience and capital allocation optionality 2023 2022 30 Jun £M 30 Jun £M Intangible fixed assets 24.6 19.7 Tangible fixed assets * 65.0 63.8 Net working capital 5.0 7.0 Net cash 11.8 9.9 Lease liabili
Slide 12: Cash Flow
Michelmersh Interim Results 2023 Cash Flow Consistent quality of the fundamental cash generating ability of the business with adjusted EBITDA cash conversion of 87.3% HY23 HY22 £M £M Net cash generated by operations 7.6 8.0 Tax paid (1.2) (1.3) Interest paid - (0.1) Purchase of property, plant and e
Slide 13: Strong Operational Cash Profile
Michelmersh Interim Results 2023 Strong Operational Cash Profile Strong Group cash position of £11.8m 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 1.0 EBITDA:Debt
Slide 14: Sector Review
Michelmersh Interim Results 2023 Sector Review The Edge, Nottinghamshire 14
Slide 15: Why Michelmersh is Well-Positioned
Michelmersh Interim Results 2023 Why Michelmersh is Well-Positioned Extensive Product Strong Industry Premium Products Portfolio Relationships • Focus on core competencies and • Broad product portfolio • Collaborative distribution model delivering the highest quality deliberately targeting a diverse
Slide 16: Resilient Market Fundamentals
Michelmersh Interim Results 2023 Resilient Market Fundamentals UK Housing Dynamics Repair, Maintenance & Supportive long-term demand Government policy priority Improvement dynamics • Critical shortage of new • All three major political • Significant legacy and residential and social housing parties
Slide 17: UK Brick Manufacturing – Current Trends
Michelmersh Interim Results 2023 UK Brick Manufacturing – Current Trends Contraction in construction sector activity led to inventory increases at 5 year high HY23 & HY22 Cumulative output and excess over output (Source: BIS) Production, Deliveries and Stock Movement • June 2023 UK brick industry st
Slide 18: Market Structure
Michelmersh Interim Results 2023 Market Structure UK brick manufacturing UK manufactured brick - Market Share highly concentrated OTHERS 3% MICHELMERSH 5% FORTERRA 28% WIENERBERGER 21% 2022 UK brick consumption c. 2.5 Billion IBSTOCK (c. 1.9 Billion UK manufactured, Source: Published statistics and
Slide 19: Outlook
Michelmersh Interim 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 • Diver
Slide 20: Appendix
Michelmersh Interim Results 2023 Appendix Brabazon, Bristol 20
Slide 21: Brick and Façade Specialists
Michelmersh Interim Results 2023 Brick and Façade Specialists Enhanced and Diverse End Markets HY23 Revenue by end-market: Non-residential & • Broad product portfolio deliberately targeted at a diverse range of end customers specification • Distribution model underpinned by length and depth of RMI c
Slide 22: Good corporate citizen – Core Values IRIS
Michelmersh Interim Results 2023 Good corporate citizen Michelmersh Core Values – IRIS Using modernised production methods that emphasise sustainable building solutions and adhere to the most stringent production requirements, Michelmersh guarantees high quality product standards with a low ecologic
Slide 23: Sustainability
Michelmersh Interim 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 degrada
Slide 24: 2022
Michelmersh Interim Results 2022 Michelmersh Interim Results 2023 24
Slide 25: SustainableBrick.com
Michelmersh Interim Results 2022 Michelmersh Interim Results 2023 SustainableBrick.com 25
Slide 26: Hybrick – the world's first 100% hydrogen fired clay bricks
Michelmersh Interim Results 2023 Michelmersh is proud to announce Hybrick™ – The world’s first 100% hydrogen fired clay bricks.. 26
Slide 27: Education Sector
Michelmersh Interim Results 2023 Education Sector Eton College, Berkshire 27
Slide 28: Public
Michelmersh Interim Results 2023 Public International Rugby Experience, Ireland & St. Lukes Church, Lancashire 28
Slide 29: Public
Michelmersh Interim Results 2023 Public Black Country Living Museum, West Midlands. 29
Slide 30: Infrastructure
Michelmersh Interim Results 2023 Infrastructure Woolwich Crossrail Station, London 30
Slide 31: Modern Living
Michelmersh Interim Results 2023 Modern Living Sydenham Hill Gate (Grand Designs), London & Becontree Estate (Affordable Housing), London 31
Slide 32: Urban Regeneration
Michelmersh Interim Results 2023 Urban Regeneration West End Gate, Berkeley Homes, London 32
Slide 33: Urban Regeneration
Michelmersh Interim Results 2023 Urban Regeneration Queen’s Quay, Glasgow & Shepherd’s Quay, Newcastle 33
Slide 34: Large Volume Housing Developments
Michelmersh Interim Results 2023 Large Volume Housing Developments The Edge, Nottinghamshire 34
Slide 35: Large Volume Housing Developments
Michelmersh Interim Results 2023 Large Volume Housing Developments Cooper Court, Berkshire 35
Slide 36: Contact
Michelmersh Interim Results 2023 Brabazon, Bristol Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk 36
Michelmersh Brick Holdings — H1 2023 Earnings Presentation on 6ix