30 March 2022
Michelmersh Brick Holdings Plc
(“MBH”, the “Company”, or the “Group”)
Preliminary results for the year ended 31 December 2021
Strong performance surpassing record adjusted 2019 financial year and positive momentum into FY22
Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer, is pleased to report its preliminary results for the year ended 31 December 2021.
Financial Highlights:
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31 Dec 2021
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31 Dec 2020
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31 Dec 2019
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Growth – FY21 on FY20 |
Growth – FY21 on FY19 |
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Statutory results |
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Revenue |
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£59.5m |
£52.0m |
£53.5m |
14.4% |
11.2% |
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Gross margin |
40.7% |
41.3% |
40.9% |
(0.6%) |
(0.2%) |
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Operating profit |
£9.9m |
£7.6m |
£11.1m |
30.3% |
(10.8%) |
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Profit before tax |
£9.7m |
£6.9m |
£10.4m |
40.6% |
(6.7%) |
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Basic earnings per share |
6.50p |
5.27p |
9.41p |
23.3% |
(30.9%) |
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Cash from operations |
£15.8m |
£12.9m |
£16.6m |
22.5% |
(4.8%) |
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Net cash/(debt) |
£7.7m |
£0.8m |
(£6.3m) |
up £6.9m on 31 Dec 2020 |
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Adjusted results* |
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Adjusted EBITDA1 |
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£14.7m |
£12.3m |
£13.6m |
19.5% |
8.1% |
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Adjusted operating profit |
£11.1m |
£8.8m |
£10.3m |
26.1% |
7.8% |
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Adjusted profit before tax |
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£10.9m |
£8.0m |
£9.6m |
36.3% |
13.5% |
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Adjusted earnings per share |
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9.33p |
6.28p |
8.41p |
48.6% |
10.9% |
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Strategic and Financial Highlights:
- Excellent performance in 2021, with adjusted results for the year ahead of record 2019 pre-Covid-19 comparison across all key adjusted financial metrics
- Focused management of production efficiency and cost base supporting continued strong gross margin performance
- Strong operational cash generation supported capital investment with the completion of the new road at the Telford quarry to access long term clay mineral reserves
- Published comprehensive sustainability report and road map to achieving carbon neutrality
- New £20.0m bank facility provides financing flexibility, capacity for further strategic investments and for pursuing acquisition opportunities
- Final dividend per share of 2.50p resulting in full year dividend of 3.65p, up 46% on 2020, demonstrating commitment to progressive dividend policy and the directors' confidence in the outlook of the Group
Outlook:
- Positive end market fundamentals expected to continue for new housing, commercial and key repair, maintenance and improvement (RMI) markets
- Energy price hedging in place with over 90% of our expected requirements secured for 2022
- FY21 EBITDA margin is reflective of our medium-term target of maintaining margins at or around 25.0%.
- Strong and well-balanced opening order book for 2022 with positive order intake momentum continuing in the first quarter of FY22.
Commenting on the results, Martin Warner, Chairman of Michelmersh Brick Holdings Plc, said:
“I am pleased to report on a very successful year for the Group, with the delivery of strong revenue and profit surpassing our 2019 pre-Covid-19 record adjusted results performance.
“We are operating in a sector which is fundamental to the post Covid recovery. We have entered 2022 with a strong and balanced order book and are continuing to see positive order intake momentum from our broad customer base with high demand across all our key markets. The ongoing Covid pandemic, together with the elevated inflation risks in the UK economy, mean that we operate in a more challenging environment as we enter the new financial year. However, we remain focused on delivering a quality product and service to our customers and have worked collaboratively to deliver price increases across our premium portfolio to offset higher cost inflation.
“The positive momentum and the benefits from the longer-term fundamentals in our sector provide a resilient foundation given the current uncertain macroeconomic conditions and the Board remains confident in the strategic outlook of the business. “