TIDMMBH
RNS Number : 3228L
Michelmersh Brick Holdings PLC
05 September 2023
5 September 2023
Michelmersh Brick Holdings PLC
("MBH", the "Company", or the "Group")
Half Year Results for the six months ended 30 June 2023
Positive first half performance and resilient outlook
Michelmersh Brick Holdings PLC (AIM: MBH), the specialist brick
manufacturer and brick-fabricator, is pleased to report its half
year results for the six months ended 30 June 2023.
Financial Highlights:
Organic
30 June 30 June change
2023 2022 Change (2)
---------------------- ----------------- ----------------- ------- ----------
Statutory results
Revenue GBP42.0m GBP34.0m 23.5% 10.3%
Gross margin 36.9% 37.7% (0.8%) 0.2%
Operating profit GBP6.1m GBP5.7m 7.0% 5.3%
Profit before tax GBP6.1m GBP5.6m 8.9% 7.1%
Basic earnings per
share 5.00p 4.64p 7.8% 6.2%
Cash from operations GBP7.6m GBP8.0m (5.0%) (6.5%)
Net cash GBP11.8m GBP9.9m 19.2% 14.1%
Dividend per share 1.50p 1.30p 15.4% -
Adjusted results*
Adjusted EBITDA(1) GBP8.7m GBP8.1m 7.4% 4.9%
Adjusted operating
profit GBP6.8m GBP6.2m 9.7% 8.1%
Adjusted profit
before tax GBP6.8m GBP6.1m 11.5% 9.8%
Adjusted earnings
per share 5.73p 5.12p 11.9% 9.8%
----------------------- ----------------- ----------------- ------- ----------
Strategic and Operational Highlights:
-- Positive first half of 2023, with resilient performance
highlighting benefits of our diverse end markets
-- Strong opening order book underpinned first half performance,
despite sector wide c.25% decline in brick volume demand driven by
continuing elevated inflation and uncertain interest rate
outlook
-- Continuing focus on collaboration with customers to deliver appropriate portfolio pricing
-- FabSpeed revenue included in Group results for the first time
following its acquisition in November 2022 alongside strong organic
like-for-like performance
-- Launch of SustainableBrick.com, a new website that highlights
the benefits of clay brick to our broad customer base
-- Careful management of input costs on a risk - based approach,
with energy costs continuing to be hedged in uncertain markets and
investment in solar at plants to supplement longer term energy
requirement
-- Group cash of GBP11.8 million and undrawn GBP20 million
borrowing facility underpins financial resilience and flexibility
to pursue a balanced capital allocation policy and further
acquisition opportunities
-- Declaration of interim dividend of 1.50 pence (+15% on H122)
underlines the Board's confidence in the outlook of the business
and its commitment to progressive returns for shareholders
Outlook
-- Focus on maintaining a well-balanced forward order book and
appropriate pricing expected to support resilient demand across our
diverse end market customer base and keep us on track to meet full
year expectations
Commenting on the results, Martin Warner, Chairman of
Michelmersh Brick Holdings PLC, said:
"The Group has delivered a positive first half performance
despite a challenging macroeconomic backdrop which has impacted the
construction industry significantly and in turn some of our end
markets. Our first half performance has benefitted from a
well-balanced order book and our diverse end markets and we will
continue to prioritise appropriate portfolio pricing to support
demand from our customers.
"Whilst the brick market has been impacted by lower consumer
confidence, we continue to focus on delivering an excellent product
and customer service, while proactively managing our input costs
appropriately. Backed by the resilient fundamentals of our
business, we remain on track to meet full year expectations. "
(*) The Directors believe that adjusted measures provide a more
useful comparison of business trends and performance. Adjusted
results exclude costs associated with acquisitions and the
amortisation of acquired intangibles. The term adjusted is not
defined under IFRS and may not be comparable with similarly titled
measures used by other companies. (.) Adjusted performance results
are reconciled with statutory results in the Joint Chief Executives
Officers' Statement below .
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation
(2) Organic change presents a percentage comparison year on year
excluding the impact of the results of FabSpeed which was acquired
on 24 November 2022.
An analyst briefing will be held at 09:00am today. To attend,
please email michelmersh@yellowjerseypr.com .
The Company also notes that it will be hosting an online
presentation to retail investors on Friday 08 September at 10:00am.
Those wishing to join the presentation are requested to register
via the following link: Meeting Registration.
Michelmersh Brick Holdings PLC Tel: +44 (0) 1825
Peter Sharp, Joint Chief Executive Officer 430 412
Frank Hanna, Joint Chief Executive Officer
Ryan Mahoney, Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Joint Tel: +44 (0)
Broker) 20 7523 8000
Max Hartley
Bobbie Hilliam
Harry Pardoe
Berenberg (Joint Broker) Tel: +44 (0)
Richard Bootle 20 3207 7800
Detlir Elezi
Yasmina Benchekroun
Yellow Jersey PR Tel: +44 (0)
Charles Goodwin 7747 788 221
Annabelle Wills Tel: +44 (0)
7775 194 357
About Michelmersh Brick Holdings PLC:
Michelmersh Brick Holdings PLC is a business with seven market
leading brands: Blockleys, Carlton, FabSpeed, Freshfield Lane,
Michelmersh, Floren.be and Hathern Terra Cotta. These divisions
operate within a fully integrated business, combining the
production of premium, precision-made bricks, pavers, special
shaped bricks, bespoke Terra Cotta products and prefabricated brick
components. 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 122 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 ,
www.bimbricks.com and www.sustainablebrick.com
Joint Chief Executive Officers' Statement
We are pleased to report on a positive start to our 2023
financial year and provide details on further progress against our
strategic objectives. These half year results have been achieved
despite a very challenging environment across the construction
industry with elevated inflation rates creating significant
uncertainty in the trajectory of future interest rates, which is
weighing on consumer demand across our key markets.
Despite the current headwinds, the fundamentals in our end
markets remain positive with a critical shortage of both new
residential and social housing, a significant legacy housing
inventory constructed with brick facades underpinning future
Repairs, Maintenance and Improvement ("RMI") demand together with
requirements for specification and brick-cladding remedial
solutions. Furthermore, all three major political parties remain
committed to reversing the decades long decline in housing
formations. Our strategic approach remains focused on targeting our
broad product portfolio to address a balanced demand across each of
these segments and in our view this underpins the resilience of our
business as we focus on continuing to deliver earnings growth and
returns for shareholders. The longevity and depth of our customer
relationships support this approach and we are focused on
maintaining our partnerships by delivering an excellent product and
service.
Our fundamental core competency remains our significant strength
in the premium end of the brick market in the UK and Benelux
markets. We view the long-term fundamentals of these markets as
positive, with brick continuing to be the façade material of choice
due to its longevity, sustainable and energy efficiency qualities,
low-cost base and broad aesthetic appeal. Demand for bricks across
the sector has declined over the last six months in line with the
more negative consumer environment. Consequently, brick inventory
volumes for the sector are above the five-year average of c.450
million. However, our ability to address the market's broad
spectrum allows us to maintain a resilient outlook.
The Group continues to focus on manufacturing and delivering the
highest quality brick products to our diverse end market customer
base. This focus on quality, together with our balanced average
selling prices and focus on consistently selling all the products
we make, underpins our confidence in the Group's future earnings
growth.
The Group's operational cash generation continues to give us the
confidence to follow a balanced capital allocation strategy, with
us continuing to invest in projects that address our strategic
objectives to improve the sustainability of our manufacturing
operations and support ongoing improvements in production
efficiency. We remain committed to our progressive dividend policy
and the declaration of an increased interim dividend underlines our
confidence in the outlook for the business. All of this leaves us
well-positioned to deliver further progress in the second half of
2023 and beyond.
Group Results
Financial Highlights
Half year Half year
to to Change
30 June 30 June
2023 2022
-------------------------- ---------- ----------------- ---------
Revenue GBP42.0m GBP34.0m 23.5%
Gross margin 36.9% 37.7% (0.8%)
Adjusted* EBITDA(1) GBP8.7m GBP8.1m 7.4%
Adjusted* operating
profit GBP6.8m GBP6.2m 9.7%
Operating profit GBP6.1m GBP5.7m 7.0%
Adjusted* profit before
tax GBP6.8m GBP6.1m 11.5%
Profit before tax GBP6.1m GBP5.6m 8.9%
Adjusted* basic earnings
per share 5.73p 5.12p 11.9%
Basic earnings per
share 5.00p 4.64p 7.8%
Dividend per share 1.50p 1.30p 15.4%
--------------------------- ---------- ----------------- ---------
(*) The Directors believe that adjusted measures provide a more
useful comparison of business trends and performance. Adjusted
results exclude costs associated with acquisitions and the
amortisation of acquired intangibles. The term adjusted is not
defined under IFRS and may not be comparable with similarly titled
measures used by other companies. Adjusted performance results are
reconciled with statutory results in the Joint Chief Executives
Officers' Statement below.
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation.
As a result of the resilient trading performance in the
business, the Group has delivered robust growth and a positive set
of half year results. The 2023 half year results include the
positive impact of FabSpeed, our pre-fabricated building product
acquisition in November 2022, and for comparison purposes, we
include like-for-like narrative to remove this one-off benefit on
our key financial metrics.
Revenue for the six months increased by 23.5% to GBP42.0 million
(HY22: GBP34.0 million) over the equivalent period in 2022.
Removing the impact of FabSpeed, revenue increased by 10.3% and the
strong performance over the first six months was predominantly due
to the price increase implemented across the portfolio from the
start of the period, as we continued to offset the increase in our
input costs, whilst importantly focusing on maintaining production
volumes in line with our expectations as we look to deliver maximum
operational leverage from our broader manufacturing base.
As a result of the strong revenue growth, operating profit of
GBP6.1 million was up 7.0% on the comparative 2022 period (HY22:
GBP5.7 million) and profit before tax of GBP6.1 million was up 8.9%
(HY22: GBP5.6 million). On a like-for-like basis removing FabSpeed
these increases were 5.3% and 7.1% respectively. The lower
contribution from FabSpeed to our profit performance reflected a
number of one-off initiatives we facilitated in the first half, as
we moved swiftly to embed our operational processes and procedures
across the four acquired operational sites. Consequently, we expect
FabSpeed to contribute profits in line with our expectations from
the start of the second half of the year, following the conclusion
of these process implementations. Following nearly two years of
significant cost base volatility we have continued to manage our
input costs. As such, we have again secured over 90% of our energy
requirements for 2023. Energy contracts are also in place for 70%
of our expected requirements in 2024 with further contracts into
2025 and 2026 in line with this approach . The results and strategy
underline the Company's continuing success of managing our
operational efficiency to maximise our financial returns, whilst
importantly maintaining a close relationship with our loyal
customers through our ability to deliver a greater degree of
pricing visibility.
On a reported basis, the results include the impact of the
amortisation of acquired intangibles. On an adjusted basis, to
remove the impact of these items, adjusted EBITDA of GBP8.7 million
(HY22: GBP8.1 million) is ahead by 7.4% against 2022 and 4.9% on a
like-for-like basis. As we highlighted in our 2022 year end
results, this was at a reduced adjusted EBITDA margin of 20.8%
(HY22: 23.8%), reflecting the importance of the partnership with
our customers as we balance our financial performance and focus on
earnings growth alongside the necessity to secure robust forward
demand in our core markets.
After a tax charge of GBP1.4 million (HY22: GBP1.2 million), the
Group recorded a profit for the period after tax of GBP4.7 million
(HY22: GBP4.4 million). The tax rate of 23.5% (HY22: 21%) reflects
our expected effective Group tax rate for the full year, which is a
2.5% increase on 2022 following the change announced in the 2021
Budget and ratified by parliament which increased the standard rate
of UK corporation tax from 19% to 25% effective from 1 April 2023
.
Basic earnings per share increased by 7.8% to 5.00p (HY22:
4.64p).
The table below (Adjusted Performance Measures) provides a clear
reconciliation of the adjusted performance to the reported
numbers.
A djusted p erformance measures:
Half Half year Change Year ended
year to to
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
---------------------------- --------- ---------- ------- ------------
Operating profit 6,079 5,664 7.0% 11,609
Adjustments:
Amortisation of acquired
intangibles 684 567 1,133
---------------------------- --------- ---------- ------- ------------
Adjusted operating profit 6,763 6,231 9.7% 12,742
---------------------------- --------- ---------- ------- ------------
Depreciation 1,968 1,848 3,915
---------------------------- --------- ---------- ------- ------------
Adjusted EBITDA 8,731 8,079 7.4% 16,657
Finance income/(expense) 33 (93) (214)
Depreciation (1,968) (1,848) (3,915)
---------------------------- --------- ---------- ------- ------------
Adjusted profit before
taxation 6,796 6,138 11.5% 12,528
---------------------------- --------- ---------- ------- ------------
Basic earnings per share 5.00p 4.64p 7.8% 9.41p
Adjusted basic earnings
per share (a) 5.73p 5.12p 11.9% 10.61p
---------------------------- --------- ---------- ------- ------------
(a) Includes adjustments to exclude amortisation of acquired
intangibles
Group Cash and Working Capital
Cash generated from operations for the six months ended 30 June
2023 was GBP7.6 million, compared to GBP8.0 million for the same
period in 2022. As a result, operating cash conversion from
adjusted EBITDA was healthy at 87.3% compared to 98.8% in 2022, and
the underlying fundamental cash-generating ability of the business
continues to provide us with real financial flexibility.
Half
year Half year
to to
30 June 30 June
2023 2022
----------------------------------- ---------- -----------------
Net cash generated from operations GBP7.6m GBP8.0m
----------------------------------- ---------- -----------------
Tax paid (GBP1.2m) (GBP1.3m)
Interest paid - (GBP0.1m)
Purchase of property, plant and
equipment (GBP2.2m) (GBP1.7m)
Proceeds from sale of land GBP1.1m -
Debt repaid - (GBP0.8m)
Own shares acquired (GBP1.0m) (GBP1.2m)
Settlement for cancelled share
options (GBP1.8m) -
Lease payments (GBP0.3m) (GBP0.4m)
Dividend paid (GBP1.2m) (GBP0.9m)
Other (GBP0.1m) (GBP0.1m)
Net increase in cash and cash
equivalents GBP0.9m GBP1.5m
----------------------------------- ---------- -----------------
Net cash GBP11.8m GBP9.9m
----------------------------------- ---------- -----------------
At the half year the Group had cash of GBP11.8 million (HY22:
GBP9.9 million).
Our characteristically strong operating cash generation, cash
position and undrawn Sterling and Euro denominated bank facility of
GBP20 million provides the Group with considerable financial
resilience and flexibility to pursue a balanced capital allocation
policy and further acquisition opportunities. It is testament to
the quality of the business that we completed the initial GBP6.4
million cash consideration payment of FabSpeed in November 2022 and
ended the period ahead of our June 2022 comparison period.
Property, plant and equipment and land sale
As shown in our FY2022 results, our capital expenditure in the
first half of the current financial year highlights our broader
focus on delivering technically feasible sustainability
improvements. The principal expenditure was focused on Floren where
we have completed the construction of a building to house automated
robot pallet mixing equipment and utilised the roof to add
additional solar capacity which now collectively provides over 50%
of our electricity needs. Given the proven success in Floren, we
applied for a G99 Connection through the National Grid to add solar
panels to Blockleys, which we received during the first half and
started work on adding the solar panels which we will complete this
year. Alongside, we continued our programme of planned roll-outs to
electrify our fork-lift fleet which during the first half focused
on Michelmersh.
Additionally, over the last few years we have focused on
preparing non-core land at Blockleys ahead of its release for
alternative use. The sale of surplus investment land remains an
important pillar of our lifetime revenue sources. During the first
half we received GBP1.1 million from the sale of this surplus land
with the price agreed under the terms of a legacy option agreement.
The land had previously been valued at the option price so the sale
was released at our balance sheet carrying value with no one-off
impact to the earnings statement.
Purchase of own shares and share option cancellation
At the end of 2022, we announced a share buyback programme to
reduce the share capital of the Group to return value to
shareholders. The scheme continues to run with a maximum aggregated
consideration of GBP3.0 million of which GBP1.0 million had been
spent up to the end of the period purchasing 1,112,000 shares. The
shares continue to be held as treasury shares.
Alongside the buy-back programme, we continue to prioritise the
future expected returns of shareholders by focusing on the volume
of our issued share capital. As a result, 2.0 million 2017 LTIP
options were cancelled in November 2022 and converted to a cash
settlement. The cash settlement value of GBP1.8 million was paid in
the first half which included all associated employment tax
obligations.
Sustainability
The Group believes it is strategically integral for it to be a
senior representative of clay brick manufacturing and champion the
carbon benefits of utilising our product portfolio in the built
environments of the UK and northern Europe. As we highlighted in
the ESG section of our 2022 Annual Report, for the Group this will
always be focused on incremental improvements as we collaborate
with our partners to both develop and adopt the technical solutions
that will support the outlined targets in our 2021 Sustainability
Report.
Given our focus on championing the sustainability of our
portfolio we were delighted to launch SustainableBrick.com , a new
website that highlights the benefits of clay brick to our broad
range of end customers. This information resource aims to reinforce
to architects, the evolution and investment the industry is making
towards innovative sustainability related improvements whilst
showcasing the sustainable benefits of clay brick. The site is also
targeted at the construction industry drawing out the many carbon
calculation resources available to aid the sector in collectively
and collaboratively achieving net zero. Through the products and
initiatives showcased throughout the website we hope to lead the
way in sustainable construction practices and illustrate how these
can be adopted for future generations.
Dividend
The Board recommended a final dividend in respect of 2022 of
2.95 pence per ordinary share to shareholders. The dividend was
approved by shareholders at the AGM on 18 May 2023 and as a result
the liability for the dividend payment was accrued in the 30 June
2023 interim accounts with the GBP2.8m payment made after the half
year end on 12 July 2023.
Reflecting our fundamental belief and commitment to maintaining
the importance of our dividend policy, the Board has declared an
interim dividend of 1.50 pence per ordinary share ("pps") (30 June
2022: 1.30pps). The dividend will be paid on 11 January 2024 to
members on the register on 1 December 2023 and is not accrued in
the 30 June 2023 interim accounts. The ex-dividend date will be 30
November 2023. With this interim declaration, the Board is
maintaining its guiding policy of one third of the total annual
dividend being paid at the interim stage and two thirds of the
total annual dividend being paid at the full year.
Outlook
Following the positive first half, maintaining a well-balanced
forward order book covering a broad range of end markets is
fundamental as we look to continue our progress in the second
half.
Across the Group, current order intake remains supportive of our
quality forward order book underpinning our second half revenue
expectations and this is despite the negative and cautious
sentiment in the construction sector. The contraction in sector
demand has given us the ability to adapt elements of our production
planning ensuring inventory volumes of core products enabling near
term order opportunity fullfilment. We are focused on continuing to
diversify across RMI, housing, commercial, social and specification
projects and this whole market strategy continues to underpin our
resilient outlook.
Our active risk management of our cost base to mitigate ongoing
volatility to our input costs has supported our ability to maintain
medium-term price stability, and with the focus on partnerships and
collaboration with our customers we have not changed our portfolio
pricing ahead of the second half as we work to support and
prioritise forward demand.
Our consistent ability to deliver sustainable operational cash
generation underpins our liquidity position at the half year.
Combining this with the undrawn borrowing facility provides the
Group with both considerable financial resilience and flexibility
to pursue a balanced capital allocation strategy as we focus on
delivering value for our shareholders.
The Group continues to operate on the basis of maintaining a
well-balanced forward order book, deep and loyal customer and
distributor relationships supported by a robust demand from the
specification, housing, RMI and commercial sectors. With high
inflation and an uncertain interest rate environment we believe our
broad brick and brick-fabrication portfolio supports our ability to
address the full breadth of our end markets and it is these quality
fundamentals in our business that provide resilience and underpin
our outlook and as a result give us confidence for the second half
and beyond.
Frank Hanna and Peter Sharp
Joint Chief Executive Officers
Consolidated Income Statement
6 months 6 months 12 months
ended ended 30 ended 31
30
June June December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Revenue 42,038 33,988 68,375
Cost of sales (26,535) (21,188) (41,463)
Gross profit 15,504 12,800 26,912
Administration expenses (8,776) (6,600) (14,225)
Amortisation of acquired intangibles (684) (567) (1,133)
------------ ------------ ----------
(9,460) (7,167) (15,358)
Other income 35 31 55
Operating profit 6,079 5,664 11,609
Finance income/(expense) 33 (93) (214)
------------ ------------ ----------
Profit before taxation 6,112 5,571 11,395
Taxation (1,436) (1,170) (2,518)
------------ ------------ ----------
Profit for the period 4,676 4,401 8,877
------------ ------------ ----------
Basic earnings per share attributable
to the equity holders of the
company 5.00p 4.64 p 9.41 p
Diluted earnings per share attributable
to the equity holders of the
company 4.86p 4.50 p 9.20 p
Consolidated Statement of Comprehensive Income
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Profit for the financial period 4,676 4,401 8,877
---------- ---------- -------------
Other comprehensive income/(expense)
Items which may subsequently be reclassified to profit or loss
Currency movements 280 (236) (257)
Items which will not subsequently be reclassified to profit or loss
Revaluation deficit of property, plant and equipment - - (1,115)
Revaluation surplus of property, plant & equipment - - 2,716
Tax credit on exercise of options - - 18
Deferred tax on revaluation movement - - (466)
---------- ---------- -------------
280 (236) 896
---------- ---------- -------------
Total comprehensive income for the financial period 4,956 4,165 9,773
---------- ---------- -------------
Consolidated Balance Sheet
As at As at As at
30 June 30 June 2022 31 December
2023 2022
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Assets
Non-current assets
Intangible assets 24,617 19,655 25,291
Property, plant and equipment 65,004 63,738 65,932
---------- -------------- -------------
89,621 83,393 91,223
Current assets
Inventories 10,685 9,031 9,684
Trade and other receivables 15,380 12,026 11,801
Corporation tax receivable - 272 -
Cash and cash equivalents 11,794 9,926 10,598
---------- -------------- -------------
Total current assets 37,859 31,255 32,083
---------- -------------- -------------
Total assets 127,480 114,648 123,306
---------- -------------- -------------
Liabilities
Current liabilities
Trade and other payables 19,752 13,869 15,860
Lease liabilities 493 401 761
Corporation tax payable 1,360 - 1,159
---------- -------------- -------------
Total current liabilities 21,605 14,270 17,780
5,420 5,420
Non-current liabilities
Lease liabilities 581 523 523
Deferred tax liabilities 15,815 14,542 16,034
---------- -------------- -------------
16,396 15,065 16,557
Total liabilities 38,001 29,335 34,337
---------- -------------- -------------
Net assets 89,479 85,313 88,969
========== ============== =============
Equity attributable to equity holders
Share capital 19,181 19,178 19,181
Share premium account 16,724 16,724 16,724
Other reserves 22,229 21,967 21,435
Retained earnings 31,345 27,444 31,629
---------- -------------- -------------
Total equity 89,479 85,313 88,969
========== ============== =============
Consolidated Statement of Changes in Equity
Share Share Other Retained Total
Capital Premium Reserves Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January 2022 19,127 16,536 21,763 27,698 85,124
Profit for the period - - - 4,401 4,401
Currency difference - - (236) - (236)
Total comprehensive
income
Total comprehensive
income - - (236) 4,401 4,165
Shares issued in the
period 8 23 - - 31
Share based payment - - 508 - 508
Released on maturity
of options 13 - (68) 55 -
Purchase of own shares - - - (1,240) (1,240)
Dividends paid 30 165 - (1,100) (905)
Dividends payable - - - (2,370) (2,370)
As at 30 June 2022 19,178 16,724 21,967 27,444 85,313
Profit for the period - - - 4,476 4,476
Currency difference - - (21) - (21)
Revaluation deficit - - (1,115) - (1,115)
Revaluation surplus - - 2,716 - 2,716
Tax credit on exercise
of options - - 18 - 18
Deferred tax on revaluation - - (466) - (466)
-------- -------- --------- --------- --------
Total comprehensive -
income - - 1,132 4,476 5,608
Opening adjustment - - (10) - (10)
Share based payment - - 472 - 472
Purchase of own shares - - - (300) (300)
Release on maturity
of options 3 - (1,593) 10 (1,580)
Deferred tax on share
options - - (533) - (533)
Dividend payable - - - 2,370 2,370
Dividend paid - - - (2,371) (2,371)
As at 31 December
2022 19,181 16,724 21,435 31,629 88,969
2,212
Profit for the period - - - 4,676 4,676
Currency difference - - 280 - 280
Total comprehensive -
income - - 280 4,676 4,956
Share based payment - - 548 - 548
Released on exercise
of options - - (34) - (34)
Purchase of own shares - - - (967) (967)
Dividends paid - - - (1,229) (1,229)
Dividends payable - - - (2,764) (2,764)
As at 30 June 2023 19,181 16,724 22,229 31,345 89,479
======== ======== ========= ========= ========
Consolidated Statement of Cash Flows
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Net cash generated by operations 7,596 8,003 19,649
Taxation paid (1,235) (1,252) (1,655)
Net cash generated by operating
activities 6,361 6,751 17,994
---------- ---------- --------------
Cash flows from investing activities
Purchase of property, plant
and equipment (2,205) (1,682) (3,028)
Proceeds from sale of land 1,068 - -
Acquisition - - (6,073)
---------- ---------- --------------
Net cash used in investing
activities (1,137) (1,682) (9,101)
Net cash used in investing
activities (1,004) (1,004) (227)
---------- ---------- --------------
Cash flows from financing activities
Interest received/(paid) 33 (93) (214)
Repayment of interest bearing
liabilities - (785) (785)
Lease payments (313) (383) (721)
Settlement for cancelled share (1,798) - -
options
Proceeds of share issue - 31 31
Purchase of own shares (1,001) (1,240) (1,540)
Dividends paid (1,229) (905) (3,276)
---------- ---------- --------------
Net cash used in financing
activities (4,308) (3,375) (6,505)
---------- ---------- --------------
Net increase in cash and cash
equivalents 916 1,694 2,388
Cash and cash equivalents at
beginning of period 10,598 8,467 8,467
Foreign exchange differences 280 (235) (257)
---------- ---------- --------------
Cash and cash equivalents
at end of period 11,794 9,926 10,598
========== ========== ==============
Cash and cash equivalents
comprise:
Cash at bank and in hand 11,794 9,926 10,598
========== ========== ==================
NOTES TO THE GROUP INTERIM REPORT
1. GENERAL INFORMATION
Michelmersh Brick Holdings PLC ("the Company") is a public
limited company incorporated in the United Kingdom under the
Companies Act 2006 (registration number 3462378). The Company is
domiciled in the United Kingdom and its registered address is
Freshfield Lane, Danehill, Haywards Heath, West Sussex, RH17 7HH.
The Company's Ordinary Shares are traded on AIM, part of the London
Stock Exchange plc. Copies of the Interim Report and Annual Report
and Accounts may be obtained from the address above, or at
www.mbhplc.co.uk .
2. ACCOUNTING POLICIES
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with IFRS as adopted
by the United Kingdom. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the United Kingdom.
The financial information has been prepared on the basis of IFRS
that the Directors expect to be adopted by the United Kingdom and
applicable as at 31 December 2023. The group has chosen not to
adopt IAS 34 "Interim Financial Statements" in preparing the
interim financial information.
Statutory accounts
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ("the Act"). The statutory accounts for the
year ended 31 December 2022 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 financial information for the six months ended 30 June 2023
and 30 June 2022 is unaudited.
3. EARNINGS PER SHARE
The calculation of earnings per share is based on a profit of
GBP4,676,000 (six months ended 30 June 2022 -GBP4,401,000; 12
months ended 31 December 2022-GBP8,877,000) and 93,516,114 (at 30
June 2022 94,777,398 and 31 December 2022, 94,467,688) being the
weighted average number of ordinary shares in issue, excluding
those held in the employee benefit trust.
Diluted
At 30 June 2023 there were 2,779,140 (June 2022: 3,040,424, and
at 31 December 2022: 1,976,771) dilutive shares under option
leading to 96,295,254 shares (30 June 2022: 97,817,822, and at 31
December 2022: 96,444,459) being the weighted average number of
ordinary shares for the purposes of diluted earnings per share. A
calculation is performed to determine the number of share options
that are potentially dilutive based on the number of shares that
could have been acquired at fair value, considering the monetary
value of the subscription rights attached to outstanding share
options.
Own shares held
At 30 June 2023 1,275,465 (six months ended 30 June 2022 -
1,048,836; 12 months ended 31 December 2022 - 1,335,114) ordinary
shares were held by Michelmersh Brick Holdings PLC Employee Benefit
Trust (the "EBT") and are intended to be used to satisfy the
exercise of share options by employees. The EBT is a discretionary
trust for the benefit of the Company's employees, including the
Directors of the Company. Dividends on these shares have been
waived.
The market value of the shares held in the trust at 30 June 2023
was GBP1.2m (six months ended 30 June 2022; GBP1.0m). All 1,275,465
shares held by the EBT were acquired by the trust prior to the
period and 59,649 shares were used in the period to satisfy awards
following the vesting of shares relating to Company share incentive
schemes.
Following the announcement of a share buyback programme,
1,112,000 shares had been bought up to the 30 June 2023 and are
held in treasury and excluded from the weighted average share
calculations and the dividends on these shares have been
waived.
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END
IR FLFLEAEISIIV
(END) Dow Jones Newswires
September 05, 2023 02:00 ET (06:00 GMT)
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