Michelmersh Brick H1 Profit Falls; Net Profit Rises
Michelmersh Brick H1 Profit Falls; Net Profit Rises
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Key Points
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Adjusted profit before tax for the first half of 2026 declined 7.7% to 3.60 million pounds from 3.92 million pounds a year earlier.
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Adjusted EBITDA for the period rose 1.7% to 5.99 million pounds, up from 5.88 million pounds in the prior year.
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Basic earnings per share from continuing operations increased to 2.56 pence and diluted earnings per share to 2.54 pence, up from 2.47 pence and 2.41 pence a year ago.
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The firm cautioned that it remains watchful of political uncertainty in the UK and overseas from the Middle East conflict, indicating potential macro headwinds.
Michelmersh Brick Holdings reported mixed results for the first half of 2026, with revenue falling 9.4% to £32.42 million from £35.8 million a year earlier. Yet net profit climbed to £2.35 million, buoyed by lower tax bills, while adjusted EBITDA ticked up 1.7% to £5.99 million Investors Chronicle. The brick maker is holding firm on full-year guidance of £12.9–14.3 million in adjusted EBITDA despite a weakening UK construction market.
The company will pay an interim dividend of 1.60 pence per share on January 7, 2027. Shares in Michelmersh traded around 74.85 pence on the London Stock Exchange, signaling cautious optimism. Management warned of political uncertainty at home and Middle East tensions as potential headwinds ahead Morningstar.
UK Brick Market in Steep Decline
The UK brick industry is contracting sharply. Production fell 9% in the first half of 2026, and construction activity sits a quarter lower than four years ago Investors Chronicle. Michelmersh's revenue slide reflects this broader slump. The two largest competitors, Ibstock and Forterra, dominate the sector, leaving smaller players like Michelmersh fighting for share in a shrinking pie.
Profit Falls But Margins Hold Firm
Adjusted profit before tax dropped 7.7% to £3.60 million from £3.92 million a year prior Market Screener. Yet the company narrowed its cost base effectively. Adjusted EBITDA edged up to £5.99 million, showing that Michelmersh squeezed better margins from lower sales — a sign of operational discipline in tough times.
Earnings Per Share Beat Despite Revenue Pressure
Adjusted basic earnings per share rose to 3.33 pence from the prior year, even as the top line shrank Market Screener. Basic EPS from continuing operations climbed to 2.56 pence, up from 2.47 pence. This per-share gain came from lower tax bills and fewer shares outstanding. The company is passing some benefit back to shareholders through the 1.60 pence interim dividend.
Management Eyes Macro Risks Ahead
Michelmersh flagged two emerging risks: UK political uncertainty and Middle East tensions. The board warned these could dampen demand further Morningstar. Still, management stuck to its full-year adjusted EBITDA range of £12.9–14.3 million, suggesting confidence in resilience. The company trades in line with 2026 market expectations, with no major surprises forecast for the remainder of the year.
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