Michelmersh Brick (MBH) H1 2026 earnings summary

Executive summary

• Delivered resilient performance in H1 2026 with a 9.5% revenue decline, outperforming the wider brick market and maintaining strong distribution relationships and a robust balance sheet.

• Operational optimisation, disciplined cost control, and innovation led to a 340bps increase in gross margin and a 200bps improvement in EBITDA margin.

• Maintained strong liquidity, low net debt, and steady dividends, reflecting confidence in strategy and outlook.

• Emphasized self-help measures, cost control, and operational flexibility to adapt to market volatility.

• Outperformed UK market despatch volumes, down only 2% versus sector's 9% decline.

Financial highlights

• Revenue: £32.4m, down 9.5% year-over-year from £35.8m.

• Adjusted EBITDA: £6.0m, up 1.7%; Adjusted operating profit: £3.9m, down 2.5%.

• Gross margin improved to 37.0% from 33.6% year-over-year; EBITDA margin up 200bps.

• Basic EPS: 2.56p (up from 2.47p); Adjusted basic EPS: 3.33p (up from 3.30p).

• Net debt at June 30 was £5.0m (vs. net cash of £1.5m prior year); interim dividend of 1.60p per share declared.

Outlook and guidance

• No expectation of revenue growth in H2 due to continued market uncertainty; focus remains on self-help and internal improvements.

• Trading remains within full-year market expectations; targeting stronger H2 margins, earnings, and cash generation.

• Guidance targets a return to net cash in the next year and trading within consensus full-year ranges.

• Medium-term market fundamentals remain positive, with government housing targets in the UK and Belgium.

• UK demand remains difficult to forecast due to macroeconomic uncertainty and interest rate environment.