Michelmersh reports double-digit growth

In the first half of 2023 revenue increased by 23,5%. The performance has benefitted from a well-balanced order book and an appropriate portfolio pricing implemented to offset the increase in input costs.

Michelmersh Brick Holding, one of the UK’s leading brick manufacturers, reported double-digit revenue growth (+23.5%) in the first half of 2023. While this is not an unusual level of growth for the London Stock Exchange-listed group, the current market downturn in the UK coupled with high inflation and high interest rates make it an extraordinary achievement.

The Group posted revenue of £42 million (€48.8 million) compared to £34 million generated in the first half of 2022. This result included the positive impact of FabSpeed, the prefabricated building product company acquired in November 2022. On a like-for-like basis removing FabSpeed, the increase was 10.3%. The Group reported strong results in terms of EBITDA (£8.7 million; +7.4%) and net profit (£4.7 million compared to £4.4 million in the same period the previous year).

“Our first half performance has benefited from a well-balanced order book and from the price increase implemented to offset the increase in our input costs,” commented Chairman Martin Warner. “Whilst the brick market has been impacted by lower consumer confidence, we continue to focus on delivering an excellent product and customer service.”

In the first half of the financial year, Michelmersh focused its investments on sustainability. The biggest item of expenditure was Floren.be with the construction of a building to house robot pallet mixing equipment and the installation of a solar array to add additional solar capacity, which now collectively provides 91.5% of total electricity needs.

A similar project is underway at the Blockleys site and the Group is continuing to electrify its fork-lift fleet. The Group has made significant progress in terms of its ESG targets, reducing water consumption by 41.9% and CO₂ emissions per tonne of product by 20.1% compared to 2016. The company is committed to achieving zero waste by 2025 and net zero by 2050.

Michelmersh Brick Holdings operates in the UK with seven market-leading brands: Blockleys, Carlton, FabSpeed, Freshfield Lane, Michelmersh, Floren.be and Hathern Terra Cotta. Established in 1997, the company has grown through acquisition and organic growth into a profitable and asset rich business, producing over 122 million clay bricks and pavers per annum.

Given sustained current order intake, second half revenue expectations remain strong despite the negative and cautious sentiment in the construction sector.