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Highlights
Revenue increased 1.1% to £35.8m (USD 46.9m), supported by UK despatch growth.
Operating profit fell 26.8% to £3.0m (USD 3.9m) due to margin pressures and one-off costs.
Interim dividend of 1.60 pence per share declared, unchanged from 2024.
Michelmersh Brick Holdings PLC (AIM:MBH), a UK-based specialist brick manufacturer and fabricator, has released its half-year results for the six months ended 30 June 2025. The company reported modest revenue growth despite challenging European market conditions, while profitability and margins were impacted by operational and market headwinds.
Financial Performance
Revenue for the period stood at £35.8 million (USD 46.9 million), representing an increase of 1.1% compared with £35.4 million (USD 46.4 million) in the first half of 2024. This growth was attributed to higher UK despatch volumes, offsetting lower performance in continental Europe.
Gross margin declined to 33.6%, down from 36.2% a year earlier. Operating profit fell 26.8% to £3.0 million (USD 3.9 million) from £4.1 million (USD 5.3 million). Profit before tax decreased 29.3% to £2.9 million (USD 3.8 million), compared with £4.1 million (USD 5.3 million) in 2024. Basic earnings per share were 2.47 pence, lower than 3.37 pence in the previous year, a decline of 26.7%.
Strategic and Operational Developments
The company highlighted several initiatives undertaken during the period. UK despatch volumes continued to outperform the wider market, which remains about 25% below its 2022 peak. Michelmersh maintained a balanced order book, with order intake running ahead of normalised manufacturing volumes.
Capital expenditure of £3.8 million (USD 5.0 million) was directed towards efficiency improvements across facilities. A planned two-week shutdown at the Carlton site, tied to a major capital programme, led to a temporary three million-unit shortfall and impacted profits in the first half. Normal operating cadence has since been restored.
In Belgium, challenging conditions persisted, with housing activity down by 20% from 2024, leading to decrease in revenue and despatches at the Floren business. The company implemented cost-reduction measures to offset lower activity levels and will temporarily suspend production at Floren in Q3, with operations expected to resume in Q4.
Michelmersh reported net cash of £1.5 million (USD 2.0 million) and access to a £20 million (USD 26.2 million) borrowing facility. An interim dividend of 1.60 pence per share has been declared, consistent with the prior year.
Leadership Changes
The company also announced changes in its leadership team. Peter Sharp stepped down as Chief Executive Officer, transitioning to an industry adviser role, with Ryan Mahoney assuming the CEO position. Rachel Warren joined the Board as Chief Financial Officer, bringing experience from Wincanton.
Outlook
Michelmersh stated that its order intake remains resilient and ahead of manufacturing volumes, supporting a balanced outlook for the remainder of 2025. While the recovery in the Belgian market is progressing slowly, management expects full-year 2025 results to be broadly aligned with 2024.
