TIDMMBH
RNS Number : 8753T
Michelmersh Brick Holdings PLC
30 March 2021
30 March 2021
Michelmersh Brick Holdings Plc
("MBH" or the "Group")
FINAL RESULTS
Resilient trading through Covid-19 interruption, dividend
payments resumed
Michelmersh Brick Holdings (AIM: MBH), the specialist brick
manufacturer, is pleased to report its audited final results for
the year ended 31 December 2020, representing a strong performance
and continued progress.
Financial Highlights
-- GBP52.0 million of revenue generated, in line with the prior
year despite Covid-19 shutdown and loss of output (2019: GBP53.5
million)
-- EBITDA of GBP12.3 million, down 10% (2019: GBP13.6 million)
-- Robust operating performance driving improved gross margin 41.3% (2019: 40.9%)
-- Strong cash generation building to a year end cash balance of
GBP12.2 million and a positive net cash position
-- Repayment of furlough monies drawn during shutdown
-- Final single payment dividend of 2.50 pence, being a 117%
increase year on year (2019: 1.15 pence)
Operational Highlights
-- Strong operational and financial performance during year which has continued into 2021
-- Comprehensive support for staff through shutdown and home working
-- Commencement of road construction at Telford for long-term
benefits of the brickworks and restoration
-- Launched sustainability steering committee
-- Completion of new Floren offices, welfare & technical testing building
-- Exercised option securing additional mineral reserves at Michelmersh
Commenting on the 2020 performance, Martin Warner, Chairman at
Michelmersh Brick Holdings, said:
" To almost equal 2019's revenue level and deliver such robust
earnings after operations were suspended for most of April is an
incredible achievement. The Group worked tirelessly to make its
plants Covid-19 safe and minimise the impact. With Michelmersh
being such an effective operator, production was able to return to
optimal levels within a few weeks of recommencing.
"Michelmersh is operating in a sector that is currently buoyant
and supported by government incentives. As such, it is well placed
to capitalise on the UK and Benelux markets with its strong brands,
well-invested operational structure and sound financial footing. We
are still conscious that Covid-19 continues to cause a level of
uncertainty, whilst the UK and Europe are both getting used to
post-Brexit conditions. However, the Group has had a good start to
2021 and I remain confident that the Company can look forward to
continued growth and prosperity with the longer-term market
fundamentals in our favour."
An online analyst briefing will be held at 9.30am today. To
attend please email michelmersh@yellowjerseypr.com .
Michelmersh Brick Holdings plc Tel: +44 (0)7384 259 407
Frank Hanna, Joint CEO
Stephen Morgan, Finance Director
Canaccord Genuity Limited (NOMAD Tel: +44 (0)20 7523 8000
and Broker)
Bobbie Hilliam
Georgina McCooke
Yellow Jersey PR Tel: +44 (0)7747 788 221
Charles Goodwin
Annabel Atkins
The information contained within this announcement is deemed to
constitute inside information as stipulated under the UK Market
Abuse Regulation. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
About Michelmersh Brick Holdings PLC:
Michelmersh Brick Holdings PLC is a business with seven market
leading brands: Blockleys, Carlton, Charnwood, Freshfield Lane,
Michelmersh, Floren and Hathern Terra Cotta. These divisions
operate within a fully integrated business combining the
manufacture of clay bricks and pavers. The Group also includes a
landfill operator, New Acres Limited, and seeks to develop future
landfill and development opportunities on ancillary land
assets.
Established in 1997, the Company has grown through acquisition
and organic growth into a profitable and asset rich business,
producing over 120 million clay bricks and pavers per annum.
Michelmersh currently owns most of the UK's premium manufacturing
brick brands and is a leading specification brick and clay paving
manufacturer.
Michelmersh strives to be a well invested, long term,
sustainable, environmentally responsible business. Opportunity,
training and security for all employees, whilst meeting the needs
of stakeholders are at the forefront of everything we do. We aim to
lead the way in producing some of Britain's premium clay products
and enhancing our environment by adding value to the architectural
landscape for generations to come.
We are Michelmersh Brick Holdings PLC: we are "Britain's Brick
Specialist".
Please visit the Group's websites at: www.mbhplc.co.uk and
www.bimbricks.com
Chairman's Statement
Introduction:
It is extremely gratifying to be able to report that your
Company has successfully navigated a very challenging year,
delivered a very commendable result and retained a strong financial
position. After Covid-19 led to our manufacturing operations being
suspended for most of April 2020, the Group worked tirelessly to
get the business back up to speed in a safe manner. Whilst
construction site activity also slowed in early spring due to
Covid-19, by the beginning of May activity had picked up, which we
experienced with customer orders and sales returning quickly.
Throughout the pre- and post-Covid-19 interruption, the Board
has striven to uphold the Group's 'good corporate citizen'
principles and sought to balance the Group's responsibilities to
all stakeholders. The Group's financial resilience has allowed us
to support and reward our staff, maintain responsibilities to
customers and suppliers, return furlough monies drawn to HMRC and
re-instate the dividend stream to shareholders.
Financial Highlights
2020 2019 yoy
Turnover (GBPm) 52.0 53.5 - 2.8%
Gross margin 41.3% 40.9% + 0.4%
Operating profit (GBPm)-
underyling(1) 8.8 10.3 - 15.2%
Profit before tax (GBPm)
underyling(1) 8.0 9.6 - 16.5%
EBITDA(GBPm) underyling(1) 12.3 13.6 - 9.8%
Basic EPS (pence) underyling(1) 6.28 8.41 - 25.3%
Dividend per share (pence) 2.50 1.15 +117.4%
Net cash /(debt) (GBPm) 0.7 (6.3)
Net cash generated by
operations(GBPm) 12.9 16.6 - 22.5%
(1) Underlying excludes items regarded as exceptional and
amortisation of intangibles
The Group has for some time operated on the basis that
production output should be maximised and all product will be sold
to a customer. Covid-19 regulations caused operations to cease in
late March and production output was lost and, despite a strong
performance once this recommenced, the Directors consider that
output was negatively impacted by 6.5 million bricks. Despite the
Group being able to return to production swiftly, the customer
markets reopening lagged production output and this impacted
deliveries. This led to a small reduction in turnover during the
year.
Given the challenges, the Directors believe the overall
financial results of the Group are impressive with turnover and
volumes only 3% lower than the Group's strongest ever performance
in 2019. Increased costs eroded earnings as Covid-19 related
cleaning costs, continued IT development costs and unfavourable
currency rates had an impact. This led to earnings metrics being
below that achieved in 2019. However, the return to full capacity
and operational performance in the second half of the year gives me
confidence that the worst is over and the business is in a strong
and stable position moving forward.
Cash and Net Debt
The Group ended 2020 in a modest net cash position after opening
the year with net debt of GBP6.3 million. Cash preservation
measures were taken in the early part of the year in the face of
Covid-19 but strong trading put the Group on a solid financial
footing by the end of the year.
In the early stages of Covid-19, the financial backdrop held
uncertainties and the Board took certain measures to protect the
business - drawing down GBP3 million from existing bank facilities,
accepting government support through furlough payments and
deferring VAT payments, holding back capital projects, cancelling
the final dividend in respect of 2019 and stress testing the
business prospects. As trading recovered from early summer onwards,
uncertainties receded and cash reserves recovered, which enabled
the Group to reverse the measures taken by repaying furlough
payments, schedule the repayment of deferred VAT payment and
reinstate dividends. Moreover, the Group has made a voluntary
prepayment of GBP10 million of bank debt as well as GBP3.3 million
of scheduled repayments. The Group entered 2021 in a net cash
position including substantial cash balances which, along with
undrawn bank facilities, afford headroom against risk, the
opportunity to invest and to pay a progressive dividend.
Dividend
As mentioned above, the Board reluctantly withdrew the final
dividend in respect of 2019, but the business has now achieved the
stability and cash resources to recommence dividend payments. The
Board proposes a single dividend in respect of 2020 of 2.5 pence
per ordinary share to shareholders on the register on 4 June 2021
which will be paid on 14 July 2021. The Company will again offer
shareholders a scrip alternative to a cash dividend with a scrip
election date of 23 June.
The dividend exceeds previous levels as a proportion of earnings
in recognition of the withdrawal of the 2019 dividend.
Board and Employees
This year has seen an impressive response from the Group's staff
to significant challenges both as individuals and in demonstrating
significant and outstanding teamwork. Operational and financial
outcomes owe much to their skill and commitment and on behalf of
the shareholders and the Board, I would like to pass on my sincere
thanks.
The Board is also undergoing a period of change with the
addition of two new non-executive directors within the year. Paula
Hay-Plumb joined at the 2020 AGM and is already ensconced as Chair
of the Audit Committee and contributing to the effectiveness of the
Board. In November, Tony Morris was appointed bringing energy and
experience that will help the Group explore and develop commercial
opportunities. I welcome them to the business.
The role of Company Secretary has been transferred to a
professional third-party corporate entity, Prism Cosec, adding
front-line expertise and guidance to the Board.
We will, however, be losing two long established members of the
Board in 2021 as Bob Carlton-Porter and Stephen Morgan step away
from the Company at the forthcoming AGM, having served 17 and 11
years respectively. On a personal note, and on behalf of
shareholders, can I extend my thanks to them for their contribution
and support which have helped to make Michelmersh the Company it is
today through a period of remarkable growth. They will be hugely
missed and I wish them well.
The CFO role has been filled following a rigorous and
wide-ranging recruitment process. The new appointee, Ryan Mahoney,
will join us following our 2021 AGM in early June, bringing
significant financial and operational experience. His expertise
will help the business secure continued growth and we look forward
to working with him.
Ryan joins from Avon Rubber, the FTSE 250 defence engineering
and manufacturing group where he has been Deputy Chief Financial
Officer since April 2018. Prior to that, Ryan had been Group
Financial Controller for Unite Students, the FTSE 250 property
group, since November 2015, and before then held other senior
finance roles within the business. Prior to joining Unite, Ryan
worked for KPMG for 9 years in both audit and advisory roles. Ryan
is both a qualified accountant and a member of the ICAEW.
OUTLOOK
Michelmersh is operating in a sector that is currently buoyant
and supported by government incentives. As such, it is well placed
to capitalise on the UK and Benelux markets with its strong brands,
well-invested operational structure and sound financial footing. We
are still conscious that Covid-19 continues to cause a level of
uncertainty, whilst the UK and Europe are both getting used to
post-Brexit conditions. However, the Group has had a good start to
2021 and I remain confident that the Company can look forward to
continued growth and prosperity with the longer-term market
fundamentals in our favour.
Martin Warner
Chairman
30 March 2021
Chief Executives' Report
The first quarter of 2020 showed a promising start to the year
up until the Group's manufacturing activities were suspended due to
Covid-19. All factories undertook the process of a safe, phased
shut-down of kilns and manufacturing operations ceased as home
working continued where possible for administrative staff. During a
four-week shutdown, skeleton staff ensured on-site safety and
conducted critical maintenance duties, and health and safety teams
liaised with operational staff to develop Covid-19 secure safe
operating procedures ("SOPs") in preparation for the return to
work. The intention from operational teams was to return to a safe
workplace as soon as possible in order to protect the business and
the workforce's livelihood.
Return to work commenced towards the end of April on a phased
basis as new SOPs were implemented. At this stage, some operations
were expected to be scaled back with two sites not scheduled to
achieve full capacity until all restrictions were lifted. It was
not long, however, before development of systems and structures
allowed full capacity to be achieved at all plants.
The closure of operations meant that the Group lost output of
9.5 million units. Strenuous efforts were made to recover lost
units and by the end of December 2020, the Group's UK output was
only 6.5 million units behind the level of output achieved in the
whole of 2019. Following the return to operations in April 2020,
the business experienced minimal Covid-19 related absence for the
remainder of the period thanks in no small part to the commitment
of employees in following the SOPs. There was, however, a spike in
Covid-19 infections and isolations at the beginning of 2021
following the Christmas break, affecting a small number of
employees relatively severely. The absences have reduced
significantly in recent weeks and overall have not had a dramatic
effect on operations. The business continues to operate under the
established SOPs and deep-cleaning routines.
The impact of Covid-19 on deliveries to customers was greater
than on manufacturing output as elements of the market were slower
to re-open operations. At the low point, UK despatch volumes were
down by 14 million units, however there was pent-up demand in a
buoyant construction sector that was released through the second
half of the year. By the close of the year, units despatched were
only 7.4 million units less than in 2019, in itself a very
successful year.
The Group met the objectives set at the half year by converting
the strong order book into sales throughout H2, managing down our
debt and returning to a progressive dividend stream.
Energy costs in 2020 were relatively benign as world energy
markets were depressed. This compensated for some additional health
and safety and cleaning costs related to Covid-19. Despite lower
volumes in what is a business with heavy fixed costs, gross margins
were slightly ahead of the levels seen in 2019. The UK results also
benefitted from a strong rebound in performance from Carlton Brick
after disruptions in 2019 brought on by integration of new
investment in plant.
During the course of 2020, the Group completed the supply to
several inspiring schemes which achieved BREEAM "excellent"
sustainability ratings. Other notable projects included Hobb House
Court in London, Victoria House in Leeds, Clockworks in Manchester
and University College London Hospital to name but a few. The Group
strategy of ensuring a well-balanced forward order book continues
from previous years into 2021 and Q1 order intake remains
robust.
Despite the disruption from Covid-19 and with many staff
homeworking, the Group was able to build momentum through H2 on a
number of key initiatives. The Group's newly formed Sustainability
Steering Committee successfully implemented a Net Zero road map and
the IT department went live with the implementation of the new
Salesforce software. We are the first brick manufacturer to partner
the industry's Supply Chain Sustainability School. We also met our
Pledge 100 target of donating 100k bricks to key NVQ colleges
around the UK to help train our future bricklayers.
As we look around at the UK vernacular we see many examples of
brick applications, proudly standing after hundreds of years. We
know that our products are natural, thermally efficient, durable
and can be recycled, boasting huge longevity with a minimal
environmental footprint. In this context it is clear that the
overall carbon emissions spread through every year of the brick's
service life is extremely low. With a lifecycle at least two and
half times that of environmental product declarations (60 years),
zero in-use emissions due to no maintenance, brick is by far the
most sustainable, long term choice. As Britain's Brick Specialists,
we will continue to inspire beautiful, comfortable, safe and
sustainable architecture that will enhance our built environment
for generations to come.
Floren
Belgium has suffered the impact of Covid-19 more than most and
their recovery is likely to lag behind the UK. Despite this, Floren
has performed very well with output in the year similar to 2019.
Despite a slight reduction in turnover as markets were affected,
net contribution to the Group improved for the year after only
contributing 10 months post acquisition in 2019. The business has
undergone an extended winter shutdown in which new investment has
been made to improve efficiency and reduce risk of breakdown.
The vendors of Floren remained in place as general managers post
acquisition by Michelmersh in February 2019 and helped deliver two
years of above expected contribution. They have now moved on to new
ventures and we thank them for their contribution and wish them
well. After notifying us that they intended to leave the business,
a new general manager was recruited and has been in place since the
autumn and a new management team has been developed. We look
forward to continued progress from our Belgian business.
Staff development
During the year, the role of the intermediate management board
of Associate Directors was broadened with new members and a wider
remit. As the Group develops, this forum extends responsibilities,
rewards key individuals and strengthens the management structure of
the Group. This board includes expertise from a range of
disciplines that controls and directs day-to-day operations.
2020 was a year that saw companies across the world face
challenges that could never have been imagined or foreseen a year
before. The impact, not just on businesses, but on individuals and
their wellbeing, cannot be underestimated. As a company we felt it
was of paramount importance that our staff continued to feel safe
and supported throughout the pandemic. Following the reopening of
all our sites, and adhering to all government guidelines, we
engaged an external company to provide deep cleaning of all our
offices and public areas every week and have continued this
throughout the lockdown.
We organised a mental health and wellbeing awareness week for
all staff raising the importance of having recognised breaks and
stepping away from our work stations and taking time for ourselves.
During this week, regular emails and bulletins were sent out with
tips and advice on how to help improve our wellbeing and mental
health. All staff also had the option of completing an online
survey enabling them to provide feedback on how they felt the Group
could improve wellbeing within the workplace.
Our commitment to ensure our core values are upheld and adhered
to remains unwavering and we will continue to model this at all
levels to ensure all our staff are treated with integrity and
respect. Despite the unprecedented challenges faced as a Group last
year we believe we have shown that we live out our values and not
only support our staff practically but also recognise and
appreciate them and reward where possible. It was pleasing to note
that eight members of staff celebrated between 25-50 years' service
with the business during 2020.
We would also like to take this opportunity to thank both
Stephen Morgan and Bob Carlton-Porter for their commitment and hard
work over the years. Their input and dedication have been hugely
appreciated. We look forward to welcoming our new CFO Ryan Mahoney
to the Board and, with Stephen's assistance, we will ensure a
smooth transition as we progress with our strategic aims for H2 and
beyond 2021.
Land Assets
During the year, preparations were completed that enabled the
Group to commence construction of the road that bisects the quarry
at Telford. Contractors broke ground late in 2020 and are expected
to complete the project in summer 2021. The existing public road
prevents access to the remaining clay mineral on the site that
supports brick manufacturing for decades to come. A long-term,
detailed extraction and land remediation plan is in place that
delivers mineral to the brick manufacturing business and releases
land for alternative use.
In January 2021, the option agreement for mineral in land
adjacent to the Michelmersh brickworks at Romsey was exercised
securing minerals for at least 15 years brickmaking on the
site.
Plant and machinery
As with other aspects of the business, Covid-19 impacted our
approach in the year. Investment in plant was deferred initially in
order to preserve cash resources, and once operations recommenced
after the shutdown, concentration was directed towards recovery of
output and health and safety measures.
The business will now turn its attention to projects that
address our goals of expansion of capacity, reduction in labour and
energy input costs and de-risking processes. The recent budget
provides an incentive to invest surplus cash if the project returns
are attractive.
Charity
Our commitment to our Corporate and Social Responsibility (CSR)
is never seen as just a 'tick box' exercise. It is an area of our
business that we believe in strongly, as mirrored in our Company
core values. During 2020 we once again contributed to charities
across the country donating funds, food products, children's toys,
resources and a wealth of clay products to various charities and
institutions across the UK.
Due to the huge impact the pandemic has had on so many people
some of the charities we consistently donated money to were MIND's
emergency COVID crisis fund, NHS Sussex to help support the amazing
work of our NHS and The Trussell Trust which runs local foodbanks
across the UK.
At the end of 2020 we introduced a new initiative to be launched
in 2021 where staff can nominate two charities that will be
Michelmersh's key charities for the year and we will not only
donate funds but also look to raise the profile of the chosen
charities through our social media platforms .
Outlook
We remain well placed in a market that is both performing well
and has positive, longer-term fundamentals. Challenges over imports
and reduced UK manufacturing capacity suggest that demand for our
products will remain strong and the first quarter of 2021 has been
encouraging with a strong order intake and KPIs ahead of
expectations despite some poor weather.
A new range of challenges presents itself in 2021 alongside some
traditional ones. The manner in which the staff responded
positively in the face of Covid-19 gives us confidence that all
challenges will be met with the same ingenuity and commitment. We
remain resolute and excited about the prospects for the Group for
the remainder of 2021 and beyond.
Frank Hanna, Peter Sharp
Joint Chief Executives
30 March 2021
Consolidated Income Statement
For the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
Revenue 52,044 53,523
Cost of sales (30,525) (31,618)
Gross profit 21,519 21,905
Administrative expenses (12,840) (11,754)
Amortisation of intangibles (1,170) (1,166)
(14,010) (12,920)
Other income 75 224
Exceptional item - Bargain purchase(1) - 2,422
- acquisition costs(2) - (566)
Operating profit 7,584 11,065
Finance costs (713) (698)
Profit before taxation 6,871 10,367
Taxation (1,938) (1,763)
Profit for the financial year 4,933 8,604
Basic earnings per share 5.27 p 9.41 p
Diluted earnings per share 4.95 p 9.19 p
Exceptional Items
(1) Bargain purchase; represents the excess of the fair value of
assets less liabilities acquired over the consideration payable for
the acquisition of Floren in February 2019.
(2) Costs relating to the acquisition of Floren.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
Profit for the financial year 4,933 8,604
Other comprehensive income/(expense)
Items which may subsequently be classified
to profit and loss
Currency movements 66 67
Items which will not subsequently be
classified to profit and loss
Revaluation surplus of property, plant
and equipment 1,571 801
Revaluation deficit of property, plant
and equipment (3,710) (10)
Deferred tax on movement 280 (134)
(1,793) 724
Total comprehensive income for the year 3,140 9,328
Consolidated Balance Sheet
As at 31 December 2020
2020 2019
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 21,420 22,590
Property, plant and equipment 60,948 65,348
---------------------------------------- ---------- ----------
82,368 87,938
Current assets
Inventories 10,046 9,761
Trade and other receivables 11,189 8,567
Cash and cash equivalents 12,243 15,140
---------------------------------------- ---------- ----------
Total current assets 33,478 33,468
---------------------------------------- ---------- ----------
Total assets 115,846 121,406
Liabilities
Current liabilities
Trade and other payables 12,049 9,889
Lease liabilities 530 542
Interest bearing borrowings 986 3,414
Corporation tax payable 240 882
Total current liabilities 13,805 14,727
---------------------------------------- ---------- ----------
Non-current liabilities
Interest bearing borrowings 10,487 18,036
Lease liabilities 240 673
Deferred tax liabilities 11,663 11,866
---------------------------------------- ---------- ----------
22,390 30,575
--------------------------------------- ---------- ----------
Total liabilities 36,195 45,303
Net assets 79,651 76,103
---------------------------------------- ---------- ----------
Equity attributable to equity holders
Share capital 18,789 18,498
Share premium account 15,827 15,545
Other reserves 21,581 23,192
Retained earnings 23,454 18,868
---------------------------------------- ---------- ----------
Total equity 79,651 76,103
---------------------------------------- ---------- ----------
Consolidated Statement of changes in equity
For the year ended 31 December 2020
Share Other Share premium Retained Total
Capital reserves earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January 2019 17,297 21,788 11,643 13,066 63,794
Profit for the year - - - 8,604 8,604
Revaluation deficit - (10) - - (10)
Revaluation surplus - 801 - - 801
Deferred taxation
on revaluation - (134) - - (134)
Currency difference - - - 67 67
---------------------- --------- ---------- -------------- ---------- --------
Total comprehensive
income - 657 - 8,671 9,328
Share based payment - 765 - - 765
Shares issued during
the year 1,201 - 3,902 - 5,103
Transfer to retained
earnings - (18) - 18 -
Dividend paid - - - (2,887) (2,887)
---------------------- --------- ---------- -------------- ---------- --------
At 31 December 2019 18,498 23,192 15,545 18,868 76,103
Profit for the year - - - 4,933 4,933
Revaluation deficit - (3,710) - - (3,710)
Revaluation surplus - 1,571 - - 1,571
Deferred taxation
on revaluation - 280 - - 280
Currency difference - 66 - - 66
---------------------- --------- ---------- -------------- ---------- --------
Total comprehensive
income - (1,793) - 4,933 3,140
Transfer between
reserves - 67 - (67) -
Share based payment - 1,099 - - 1,099
Shares issued during
the year 44 - 86 - 129
Released on maturity
of options 200 (983) - 783 -
Dividend paid 47 - 196 (1,064) (821)
---------------------- --------- ---------- -------------- ---------- --------
At 31 December 2020 18,789 21,581 15,827 23,454 79,651
---------------------- --------- ---------- -------------- ---------- --------
Consolidated Statement of cash flows
For the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 6,871 10,368
Loss/ (profit) on disposal of fixed assets 119 247
Finance expense 713 698
Depreciation 3,544 3,313
Amortisation 1,170 1,165
Bargain purchase - (2,422)
Share based payment charge 899 765
--------------------------------------------- --------- --------
Cash flow from operations before changes
in working capital 13,316 14,134
(Increase) / decrease in inventories (234) 822
(Increase) / decrease in receivables (2,422) 37
Increase in payables 2,223 1,629
--------------------------------------------- --------- --------
Net cash generated by operations 12,883 16,622
Taxation paid (2,501) (2,105)
Net cash generated by operating activities 10,382 14,517
--------------------------------------------- --------- --------
Cash flows from investing activities
Purchase of subsidiary undertaking net
of cash acquired - (6,202)
Purchase of property, plant and equipment (1,241) (2,412)
Net cash used in investing activities (1,241) (8,614)
--------------------------------------------- --------- --------
Cash flows from financing activities
Proceeds of loan drawdown 3,000 5,100
Adjustment in respect of IFRS16 (656) (646)
Repayment of interest bearing liabilities (12,977) (1,990)
Interest paid (713) (698)
Proceeds of share issue 129 4,704
Dividend paid (821) (2,488)
--------------------------------------------- --------- --------
Net cash (used in)/generated by financing
activities (12,038) 3,982
--------------------------------------------- --------- --------
Net (decrease)/increase/ in cash and
cash equivalents (2,897) 9,885
Cash and cash equivalents at the beginning
of the year 15,140 5,255
--------------------------------------------- --------- --------
Cash and cash equivalents at the end
of the year 12,243 15,140
--------------------------------------------- --------- --------
Cash and cash equivalents comprise:
Cash at bank and in hand 12,243 15,140
Bank overdraft - -
-------------------------------------------- --------- --------
12,243 15,140
-------------------------------------------- --------- --------
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The consolidated financial statements have been prepared in
accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006 . There have been
no changes to the accounting policies adopted since the last
consolidated financial statements were published.
2. FINANCIAL INFORMATION
The financial information set out in this Preliminary
Announcement does not constitute the Group's statutory financial
statements for the years ended 31 December 2020 or 2019. The
financial information has been extracted from the Group's statutory
financial statements for the years ended 31 December 2020 and 2019.
The auditors have reported on those financial statements; their
report was unqualified, did not include references to any matters
to which the auditors drew attention by way of emphasis and did not
contain a statement under Section 498(2) or (3) of the Companies
Act 2006.
The statutory accounts for the year ended 31 December 2020 will
be filed with the Registrar of Companies following the Company's
Annual General Meeting. The report of the auditors on those
statutory accounts was unqualified, did not include references to
any matters on which the auditors drew attention by way of emphasis
and did not contain a statement under section 498(2) or (3) of the
Companies Act 2006. The statutory accounts for the year ended 31
December 2019 have been filed with the Registrar of Companies. The
report of the auditors on those statutory accounts was unqualified,
and did not contain a statement under section 498(2) or (3) of the
Act. The Report did draw attention to the accounting policy in the
financial statements concerning the Group's ability to continue as
a going concern connected with the declaration of Covid-19 as a
pandemic by the World Health Organisation noting this as a material
uncertainty.
The financial information is presented in sterling and all
values are rounded to the nearest thousand pounds (GBP000) except
when otherwise indicated.
3. EARNINGS PER SHARE
Basic
The calculation of earnings per share from continuing operations
based upon the profit for the year of GBP4,933,000 (2019:
GBP8,604,000) and 93,680,537 (2019: 91,463,549) weighted average
number of ordinary shares.
Diluted
The calculation of diluted earnings per share from continuing
operations based upon the profit for the year of GBP4,933,000
(2019: GBP8,604,000) and 99,368,224 (2019: 93,632,839) weighted
average number of ordinary shares.
4. Alternative performance measure reconciliation
Income Statement
Year Year
ended ended
notes 31-Dec-20 31-Dec-19 2020/
2019
------ ---------- ----------- --------
GBP000 GBP000
------ ---------- ----------- --------
Turnover 52,044 53,523 -2.8%
------ ---------- ----------- --------
Reported Gross Profit 21,519 21,905 -1.8%
------ ---------- ----------- --------
Reported Gross Margin 41.3% 40.9%
------ ---------- ----------- --------
Cost of sales adjustment re Floren
brick stocks 1 - 52
------ ---------- ----------- --------
Underlying Gross Profit 21,519 21,957 -2.0%
------ ---------- ----------- --------
41.3% 41.0% 0.3%
------ ---------- ----------- --------
Reported Operating profit 7,584 11,065 -31.5%
------ ---------- ----------- --------
Exclude exceptional treatment of Floren
acquisition 2 - (1,856)
------ ---------- ----------- --------
Treat Planbaten as Exceptional 3 - (103)
------ ---------- ----------- --------
Cost of sales adjustment re Floren
brick stocks 1 - 52
------ ---------- ----------- --------
Amortisation of intangibles 4 1,170 1,166
------ ---------- ----------- --------
'Underlying' operating profit 2 8,755 10,324 -15.2%
------ ---------- ----------- --------
Finance costs - reported (713) (698)
------ ---------- ----------- --------
'Underlying' profit before taxation 2 8,041 9,626 -16.5%
------ ---------- ----------- --------
'Underlying' operating profit (as above) 8,755 10,324 -15.2%
------ ---------- ----------- --------
Depreciation 3,544 3,313
------ ---------- ----------- --------
'Underlying' EBITDA 12,298 13,637 -9.8%
------ ---------- ----------- --------
Reported underlying Basic EPS 5.27p 9.41
p
------ ---------- ----------- --------
8.41
'Underlying' Basic EPS 6.28p p -25.3%
------ ---------- ----------- --------
Net cash generated by operations 12,885 16,622 -22.5%
------ ---------- ----------- --------
Notes:
1 Cost of sales adjustment re Floren brick stocks were made
under acquisition treatment and to reflect Group accounting policy
adjustments in the year of acquisition.
2 The bargain purchase and costs of acquisition relating to
Floren are excluded from this analysis as they are
non-recurring.
3 Floren received an exceptional credit as a result in change of
regulatory treatment of land taxes which is non-recurring.
4 Amortisation of intangible assets is commonly excluded to
display Operating Profit as a financial metric .
5. DIVIDEND
The Board has recommended a final dividend for the year of 2.5
pence per share, to be paid on 9 July 2021 to shareholders whose
names appear of the register of members at the close of business on
4 June 2021.
6. REPORT & ACCOUNTS
Copies of this announcement are available and the Annual Report
will be available in due course on the Group's website
www.mbhplc.co.uk and from the Company's registered office at
Freshfield Lane, Danehill, Haywards Heath, West Sussex RH17
7HH.
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END
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