Michelmersh Brick (MBH) Trading Update summary

Trading performance and market conditions

• Trading and profitability improved over the first half, but Q4 saw a notable slowdown in construction activity due to macroeconomic challenges and UK Budget uncertainty.

• Positive order intake continues to support a well-balanced forward order book, reflecting robust demand for a diverse product range, though timing of despatches is more uncertain.

• Capital allocation priorities were maintained, with £1.8 million returned to shareholders via buybacks and the £2 million target expected to be met by year-end.

• Production returned to a normal operating rhythm in H2 after significant capital investment, supporting improved profits in the second half and into 2026.

• Full-year revenue is expected to be around £69.0 million with adjusted EBITDA of approximately £12.5 million, and a broadly cash neutral balance sheet at year-end.

Strategic positioning and sustainability

• The business operates seven leading brands and produces over 120 million clay bricks and pavers annually.

• Focus on long-term sustainability, environmental responsibility, and employee development remains central.

• Ongoing development of landfill and ancillary land assets provides future growth opportunities.

• The company aims to enhance the architectural landscape and add value for stakeholders.