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Highlights

  • MBH prioritizes sustainable building solutions, ensuring a low ecological footprint.
  • MBH’s FY23 witnessed significant revenue and profit increases, accompanied by a 5.9% dividend growth.
  • A lower debt-equity ratio and higher current ratio underscore the company’s financial strength and stability.

Michelmersh Brick Holdings PLC (LSE: MBH) provides quality clay products. It is an FTSE AIM All-Share index listed company with seven market-leading brands. The company emphasises on sustainable building solutions with a low ecological footprint.

FY23 financial highlights

In FY23, the company posted around 13.0% YoY growth in top line revenue and a 9.6% increase in profit before tax. It also showed a growth of 5.9% in total dividend payment per share. The growth in revenue and profit resulted in 11% increment in basic earnings per share (EPS) during the financial year. The company is expected to pay a final dividend of 3.00 pence per share on 10 July 2024. Other positive factors include:

  • A lower debt-equity ratio of 0.02x in FY23 versus the industry median of 0.40x.
  • Higher current ratio of 2.44x in FY23 compared to industry median of 1.61.

Top 10 shareholders

The top 10 shareholders of this company collectively form ~60.84% of the total shareholding. Gadsden (Eric John Spencer) has the largest shareholding at approximately 24.19%, trailed by Hargreaves Lansdown Asset Management Limited at around 5.15%, as illustrated in the chart below.

Company outlook

MBH has prioritized the maintenance of a balanced forward order book and stable pricing, aiming to bolster resilient order intake in 2024. Furthermore, sustained full production capacity and targeted cost management efforts in FY23 have contributed to enhanced profit performance.

Stock performance

The share price of MBH has surged by approximately 8.24% in the last one month and over the last six months, it has soared by around 19.19%. With a 52-week low of GBX 75.00 and a high of GBX 105.00, the stock is presently trading above the average of this range.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 08 April 2024. The reference data in this report has been partly sourced from EODHD/Others.