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Highlights

  • Berenberg and Canaccord Genuity both maintained Buy ratings with a price target of AUD 3.08.

  • H1 FY25 revenue grew 1.1% to £35.8 million, while profit before tax fell 29.3% to £2.9 million.

  • Order intake remains ahead of production volumes, with improved trading expected in H2 2025.

Mchelmersh Brick Holdings PLC (AIM:MBH), the specialist brick manufacturer and fabricator, has received continued analyst support, with both Berenberg and Canaccord Genuity maintaining positive ratings on the company. The reaffirmation comes alongside the release of MBH’s half-year financial results for the six months ended 30 June 2025.

Analyst Ratings

  • Berenberg maintained a Buy rating with a price target of AUD 3.08.

  • Canaccord Genuity also reaffirmed a Buy rating with a price target of AUD 3.08.

Half-Year Financial Performance

For the period ended 30 June 2025, Michelmersh reported revenue of £35.8 million (AUD 68.5 million), representing a modest 1.1% increase from the prior year’s £35.4 million. Gross margin stood at 33.6%, down from 36.2% in the comparable period.

Operating profit declined to £3.0 million (AUD 5.7 million) from £4.1 million (AUD 7.8 million), reflecting a 26.8% reduction. Profit before tax fell by 29.3% to £2.9 million (AUD 5.5 million). Basic earnings per share were 2.47 pence, compared with 3.37 pence in H1 2024, down 26.7% year-on-year.

Strategic Outlook

The company emphasised its continued resilience, with order intake running ahead of manufacturing volumes in the first half. Management is focused on maintaining a well-balanced forward order book and ensuring appropriate pricing in a highly competitive construction materials market.

Michelmersh also announced a temporary suspension of production at its Floren facility in Belgium during the third quarter of 2025 due to slow regional market recovery, with operations expected to restart in the fourth quarter.

Capital allocation remains balanced, with ongoing investments in manufacturing sites alongside consistent shareholder returns through dividends and share buybacks.

Despite near-term uncertainty around the timing of a full market recovery, the company reaffirmed its confidence in medium-term fundamentals, citing continued demand from diverse end markets. Improved trading conditions into the second half of 2025 led the Board to project a full-year outcome broadly aligned with FY24 performance.

Market Performance

Michelmersh shares closed at 92.0 pence (AUD 1.75) on 2 September 2025, up 5.74% on the day, with a trading volume of 1.83 million shares.