Shares in Michelmersh Brick (MBH) recorded a double-digit increase as it reported a 13 per cent hike in underlying operating profit to £10.3m in 2019. However, the specialist brick manufacturer is not immune to the wider coronavirus crisis, and has suspended its dividend, as well as halting operations at its brick plants.
“We have got low stock levels at the moment; we want to get back and start making product as quickly as we can,” said joint chief executive Frank Hanna, who anticipates that the closures will result in a three to four week lag. Mr Hanna added that the group maintains a healthy order book for this year. The hiatus is doubly frustrating because the manufacturer completed the installation of robotic kiln equipment in 2019 at its Carlton site, which has increased unloading capacity by a quarter. The group has also expanded its product and geographical range following a deal to acquire Belgium-based Floren et Cie nv (Floren) for a gross consideration of £8.7m, which has the supplementary benefit of acting as a natural hedge for its euro cash outflows.
| MICHELMERSH BRICK (MBH) | ||||
| ORD PRICE: | 93p | MARKET VALUE: | £87m | |
| TOUCH: | 87-93p | 12-MONTH HIGH: | 131p | LOW: 80p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 81p* | NET DEBT: | 11.4%** | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit ( £m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 29.1 | 4.6 | 4.4 | 1.0 |
| 2016 | 30.1 | 4.6 | 4.4 | 2.0 |
| 2017 | 37.9 | 3.3 | 2.6 | 2.2 |
| 2018 | 46.3 | 6.4 | 5.8 | 3.2 |
| 2019 | 53.5 | 10.4 | 9.4 | 1.15 |
| % change | +16 | +63 | +62 | -64 |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £22.6m, or 24p a share **Includes lease liabilities of £1.2m | ||||
