Michelmersh Brick Holdings PLC · LSE:MBH
Michelmersh Brick — FY2022 Earnings Presentation
32 slides from Michelmersh Brick's earnings presentation, March 2023
Slide 1: 2022 Full Year Results
2022 Full Year Results Dudden Hill London
Slide 2: Disclaimer
Michelmersh Full Year Results 2022 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 Full Year Results 2022 Presentation Team Frank Hanna Britain’s Brick Specialist Joint Chief Executive Officer Ryan Mahoney Michelmersh strives to be a well-invested, long term, Chief Financial Officer sustainable and environmentally responsible business dedicated to delivering quality pr
Slide 4: Michelmersh Brick Holdings plc
Michelmersh Full Year Results 2022 Michelmersh Brick Holdings plc 120m+ Strong core market Manufacturer of diverse RMI, Housing,Commercial, premium brick products Urban Regeneration, Specification 4 lifetime Robust distribution revenue sources policy • Bricks Pioneering Select • Prefabricatd brick c
Slide 5: Highlights
Michelmersh Full Year Results 2022 Highlights Strong performance in FY22 and financial resilience into FY23 § Excellent performance in 2022, with adjusted results for the year ahead of 2021 across all key adjusted financial metrics § Revenue of £68.4m (up 15.0%) and Gross Profit £26.9m (up 11.2%) (2
Slide 6: FY22 Financial Highlights
Michelmersh Full Year Results 2022 FY22 Financial Highlights FY21 Comparative Revenue Gross Margin Adjusted Operating Profit £68.4m 39.4% £12.7m £59.5m 40.7% £11.1m Adjusted Cashflow from EBITDA Profit Before Tax operations £16.7m £11.4m £19.7m £14.7m £9.7m £15.8m Basic EPS Adjusted EPS NAV per shar
Slide 7: FY22 Operational Highlights
Michelmersh Full Year Results 2022 FY22 Operational Highlights § Strong performance in 2022, with results for the year ahead of 2021 across all key adjusted financial metrics § Diverse end markets underpinned performance in the year benefitting from broad customer base of new housing, commercial, ar
Slide 8: FY22 Sustainability Highlights
Michelmersh Full Year Results 2022 FY22 Sustainability Highlights Net Zero by 2050 Our goal is always to reduce, then seek alternatives and finally offset any remaining carbon emissions Potential project reduction timeline § Positive year with measurable incremental progress against our 2021 Sustain
Slide 9: Financial Review
Michelmersh Full Year Results 2022 Financial Review Fish Island Village, London
Slide 10: Income statement
Michelmersh Full Year Results 2022 Income statement Excellent performance in 2022, with adjusted results for the year ahead of 2021 across all key adjusted financial metrics ADJUSTED ADJUSTED Change 2022 2021 £M £M Revenue 68.4 59.5 15.0% Gross profit 26.9 24.2 11.2% Gross margin 39.4% 40.7% (1.3%)
Slide 11: Balance Sheet
Michelmersh Full Year Results 2022 Balance Sheet Strong balance sheet position underpins financial resilience, strategic optionality and flexibility to pursue further acquisition opportunities 2022 2021 31 Dec £M 31 Dec £M Intangible fixed assets 25.3 20.2 Tangible fixed assets 65.9 63.2 Net working
Slide 12: Cash Flow
Michelmersh Full Year Results 2022 Cash Flow Consistent quality of the fundamental cash generating ability of the business with adjusted EBITDA cash conversion of 117.9% 2022 2021 £M £M Net cash generated by operations 19.7 15.8 Tax paid (1.7) (2.3) Interest paid (0.2) (0.2) Purchase of property, pl
Slide 13: Strong Operational Cash Profile
Michelmersh Full Year Results 2022 Strong Operational Cash Profile Strong Group cash position of £10.6m and undrawn committed RCF of £20m underpin financial resilience, strategic optionality and flexibility to pursue further acquisition opportunities 2017 Carlton 2019 Floren 2022 FabSpeed Acquisitio
Slide 14: Sector Review
Michelmersh Full Year Results 2022 Sector Review Chobham Manor London
Slide 15: Brick and Façade Specialists
Michelmersh Full Year Results 2022 Brick and Façade Specialists Enhanced and Diverse End Markets FY22 Revenue by end-market: Non-residential & • Broad product portfolio deliberately targeted at a diverse specification range of end customers • Distribution model underpinned by length and depth of RMI
Slide 16: Complementary acquisition of FabSpeed
Michelmersh Full Year Results 2022 Complementary acquisition of FabSpeed About FabSpeed • Established for over 20 years • Pioneers in prefabricated building components • At acquisition operating from 3 locations across the UK • First phase of growth strategy initiated in Q123 with the start of prefa
Slide 17: Supportive Market Fundamentals
Michelmersh Full Year Results 2022 Supportive Market Fundamentals UK Housing Dynamics Repair, Maintenance & Supportive demand dynamics Government policy priority Improvement • Continued shortage of new housing • Government and opposition • Ageing UK housing stock from long-term underbuilding parties
Slide 18: Market Structure
Michelmersh Full Year Results 2022 Market Structure UK brick manufacturers Market Share UK brick manufacturing OTHERS 3% highly concentrated MICHELMERSH 5% FORTERRA 28% WIENERBERGER 21% Current UK capacity c. 1.95 Billion Source: Published statistics and IBSTOCK 43% management estimates UK brick wor
Slide 19: UK Brick Manufacturing – Current Trends
Michelmersh Full Year Results 2022 UK Brick Manufacturing – Current Trends Q422 highlights reduced activity in construction sector 2022 & 2021 Cumulative output and excess over output (Source;BIS) Production, Deliveries and Stock Movement • Start of FY23 UK brick industry stocks of c. 305m; below 5
Slide 20: Why Brick?
Michelmersh Interim Results 2022 Why Brick? Why brick is the UK’s external façade material of choice:
Slide 21: Outlook
Michelmersh Full Year Results 2022 Outlook Industry • Continued shortage of UK housing and new construction • Brick continues to be the façade material of choice • Resilient demand across diverse end markets • Capital intensive and complex barriers to entry Michelmersh • Diverse end markets and broa
Slide 22: Appendix
Michelmersh Full Year Results 2022 Appendix Westoe Crown Village, Tyne & Wear
Slide 23: Good corporate citizen Michelmersh Core Values - IRIS
Michelmersh Full Year Results 2022 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 ecolog
Slide 24: Sustainability
Michelmersh Full Year Results 2022 Sustainability Shaping Genuine Sustainability The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degra
Slide 25: Hybrick – The world's first 100% hydrogen fired clay bricks
Michelmersh Full Year Results 2022 Michelmersh is proud to announce Hybrick™ – The world’s first 100% hydrogen fired clay bricks..
Slide 26: Education Sector
Michelmersh Full Year Results 2022 Education Sector Charterhouse Science & Maths School, Surrey & Headington School, Oxford
Slide 27: Public
Michelmersh Full Year Results 2022 Public Pears Building - Institute of Immunity and Transplantation, London
Slide 28: Health Care
Michelmersh Full Year Results 2022 Health Care Wilkie Gardens, Selkirkshire, Scotland & Fatima Health Centre, Lancashire
Slide 29: Modern Living
Michelmersh Full Year Results 2022 Modern Living Orchard Gardens & Officers House, London
Slide 30: Urban Regeneration
Michelmersh Full Year Results 2022 Urban Regeneration Neptune Wharf& Department Store Studios & Design District, London
Slide 31: Private Housing Developments
Michelmersh Full Year Results 2022 Private Housing Developments West Byfleet, Surrey & Bocholt, Damburgstraat
Slide 32: Michelmersh Full Year Results 2022
Michelmersh Full Year Results 2022 Battersea Power Station Re-development, London Freshfield Lane Danehill Haywards Heath Sussex RH17 7HH Tel: 0844 931 0022 www.mbhplc.co.uk
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