Michelmersh Brick Holdings PLC · LSE:MBH
Michelmersh Brick — H1 2021 Earnings Presentation
31 slides from Michelmersh Brick's earnings presentation, September 2021
Slide 1: 2021 Interim Results
4 MICHELMERSH Britain's Brick Specialists
Slide 2: Disclaimer
Michelmersh Interim Results 2021 1 Disclaimer § The information contained in this presentation document (the “presentation”, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in an
Slide 3: Presentation Team
Michelmersh Interim Results 2021 2 Presentation Team Frank Hanna Britain’s Brick Specialist Joint CEO Ryan Mahoney Michelmersh strives to be a well-invested, long term, Chief Financial Officer sustainable and environmentally responsible business dedicated to delivering quality products to its long-t
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Interim Results 2021 3 Michelmersh Brick Holdings plc 120m+ Strong core market Manufacturer of diverse RMI, Housing,Commercial, premium brick products UrbanRegeneration, Specification 3 lifetime Robust distribution revenue sources policy • Bricks Pioneering Select • Landfill Order Proces
Slide 5: Highlights – At a glance
Michelmersh Interim Results 2021 4 Highlights – At a glance Strong performance surpassing pre-Covid H119; interim dividend reintroduced § Revenue and Gross Profit of £29.9m and £12.0m, ahead of 2019 with growth of 9.9% and 13.2% (2019: £27.2m and £10.6m) § Adjusted* EBITDA of £7.6m supports an EBITD
Slide 6: H1 2021 Financial Highlights
Michelmersh Interim Results 2021 5 H1 2021 Financial Highlights 2020 Comparative Turnover Gross Margin Adjusted EBIT £29.9m 40.1% £5.7m £22.5m 38.8% £2.9m Adjusted Cashflow from EBITDA Profit Before Tax operations £7.6m £5.0m £6.7m £4.4m £2.0m £2.9m Basic EPS Adjusted EPS NAV 4.12p 4.74p 85.1p 1.74p
Slide 7: 2021 Operational Highlights
Michelmersh Interim Results 2021 6 2021 Operational Highlights § Strong start to 2021, with performance in the first half ahead of 2019 (pre-Covid-19 comparison) across all financial metrics § Positive end market fundamentals expected to continue for new housing and key repairs, maintenance and impr
Slide 8: Financial Review
Michelmersh Interim Results 2021 7 Financial Review
Slide 9: Income statement 2021 compared to pre-Covid-19 HY19
Michelmersh Interim Results 2021 8 Income statement 2021 – compared to pre-Covid-19 HY19, which was a record year for the business H1 2021/H1 ADJUSTED H1 ADJUSTED H1 12 Months to 31 2019 2021 2019 December 2020 £M £M £M Revenue 9.9% 29.9 27.2 52.0 Gross profit 13.2% 12.0 10.6 21.5 Gross margin 1.1%
Slide 10: Balance Sheet 30 June 2021
Michelmersh Interim Results 2021 9 Balance Sheet 30 June 2021 2021 2020 2020 30 June £M 30 June £M 31 Dec £M Intangible fixed assets 20.8 22.0 21.4 Tangible fixed assets 61.3 64.8 60.9 Net working capital 8.2 10.7 9.1 Net cash/(debt) 4.1 (6.5) 0.8 Lease liability (0.5) (1.1) (0.8) Deferred Tax (14.0
Slide 11: Cash Flow Summary 2021
Michelmersh Interim Results 2021 10 Cash Flow Summary 2021 H1 2021 H1 2020 £M £M Net cash generated by operations 6.7 2.9 Tax paid (1.1) (0.8) Interest paid (0.1) (0.3) Purchase of property, plant and equipment (2.0) (0.6) Debt repaid (0.8) (0.9) Lease payments (0.2) (0.3) Dividend paid - (0.8) 2.5
Slide 12: Net Cash/Debt Profile 2010 - HY21
Michelmersh Interim Results 2021 11 Net Cash/Debt Profile 2010 - HY21 - fundamental operational cash generation capability supports efficient debt repayment profile 25 8.0 7.0 20 6.0 5.0 15 4.0 EBITDA Multiple £ million 10 3.0 2.0 5 1.0 - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HY21
Slide 13: Operational Review
Michelmersh Interim Results 2021 12 Operational Review
Slide 14: Market Fundamentals
Michelmersh Interim Results 2021 13 Market Fundamentals UK Housing Dynamics Strong demand for new housing • Continued Government and opposition parties committed to construction as a weapon to re-ignite the economy • Post COVID-19 housing demand with the “chase for space” • Continued shortage of new
Slide 15: UK Brick Manufacturing – Current Trends
Michelmersh Interim Results 2021 14 UK Brick Manufacturing – Current Trends COVID-19 Impact on output and deliveries in HY20 with HY21 showing strong recovery HY21 & HY20 Cumulative output and excess over output • Current UK brick industry stocks are at an all time low of below c. (Source;BIS) 300m
Slide 16: UK Residential Market Update
Michelmersh Interim Results 2021 15 UK Residential Market Update Increase in housing starts and completions and RM&I output expected over the medium term Actual 2019 to Forecast 2023 Housing Starts and Completions Actual 2019 to Forecast 2023 RM&I Output (Source;MHCLG, ONS, CPA) (Source;MHCLG, ONS,
Slide 17: Market Structure
Michelmersh Interim Results 2021 16 Market Structure UK brick manufacturers Market Share UK brick manufacturing OTHERS 3% highly concentrated MICHELMERSH 5% FORTERRA 28% WIENERBERGER 21% UK capacity c. 1.9 billion Source: Published statistics and IBSTOCK 43% management estimates UK Brick works 16 Mi
Slide 18: Outlook
Michelmersh Interim Results 2021 17 Outlook Industry • Continued UK housing dynamics of short supply to meet strong demand • Favourable sector dynamics with supportive market fundamentals • Capital intensive and complex barriers to entry • Continued demand for residential development and latent RMI
Slide 19: Appendices
Michelmersh Interim Results 2021 18 Appendices
Slide 20: Good corporate citizen Michelmersh Core Values - IRIS
Michelmersh Interim Results 2021 19 Good corporate citizen Michelmersh Core Values - IRIS Using modernised production methods that emphasise sustainable building solutions and adhere to the most stringent production requirements, Michelmersh guarantees high quality product standards with a low ecolo
Slide 21: Sustainability Road map to 2030
Michelmersh Interim Results 2021 20 Sustainability Road map to 2030
Slide 22: Michelmersh Interim Results 2021
Michelmersh Interim Results 2021 21
Slide 23: Sustainability
Michelmersh Interim Results 2021 22 Sustainability Michelmersh Core Values 1152 solar panels All group sites operate Clay products have a Our local products 500+ acres encouraging installed producing independently verified life span of at least travel on average 60 the re-introduction of 25% of elec
Slide 24: A Packaging Commitment
Michelmersh Interim Results 2021 23 A Packaging Commitment Eliminate non-essential use of Single Use Plastics
Slide 25: Education Sector
Michelmersh Interim Results 2021 24 Education Sector Ibstock Place School
Slide 26: Luxury Homes
Michelmersh Interim Results 2021 25 Luxury Homes Applegate Homes
Slide 27: Commercial
Michelmersh Interim Results 2021 26 Commercial Excelsior Works, Manchester
Slide 28: Affordable Housing
Michelmersh Interim Results 2021 27 Affordable Housing Clockworks Manchester & Rochester Riverside
Slide 29: Urban Regeneration
Michelmersh Interim Results 2021 28 Urban Regeneration Spitalfields, Fruit & Wool Exchange, London
Slide 30: Pre-fabricated panel systems
Michelmersh Interim Results 2021 29 Pre-fabricated panel systems Buckingham Green, London
Slide 31: Interim Results 2021 contact
Michelmersh 30 Interim Results 2021 Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
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