Michelmersh Brick (MBH) H1 2025 earnings summary

Executive summary

• Revenue increased 1.1% year-over-year to £35.8m, driven by resilient UK dispatch volumes despite challenging European markets.

• Adjusted EBITDA fell 18.1% to £5.9m, with margin at 16.5% (down from 20.3%), impacted by one-off shutdowns and cost pressures.

• Gross profit declined 6.3% to £12.0m due to an extended shutdown at Carlton, impacting profits.

• Interim dividend of 1.60p declared, reflecting confidence in outlook and shareholder returns.

• CEO transition: Peter Sharp stepped down, Ryan Mahoney appointed CEO, Rachel Warren as CFO; board continuity maintained.

Financial highlights

• Revenue: £35.8m (up 1.1% year-over-year).

• Gross margin: 33.6% (down from 36.2%).

• Adjusted EBITDA: £5.9m (down 18.1%).

• Adjusted operating profit: £4.0m (down 24.5%).

• Net cash position of £1.5m maintained at period end.

Outlook and guidance

• Order intake continues to outpace manufacturing volumes, supporting a balanced order book.

• Temporary closure of Floren in Q3 due to weak Belgian market, with reopening planned for Q4.

• Full-year FY25 performance expected to be broadly in line with FY24, with growth targeted for FY26.

• Energy price hedging covers over 70% of expected requirements for H2 2025.

• Medium-term fundamentals remain positive, but timing of recovery in UK and Belgium is uncertain.