LONDON (ShareCast) - (Sharecast News) - Brick manufacturer and fabricator Michelmersh said on Tuesday that profits had slumped in the six months ended 30 June despite a modest uptick in revenues.
Michelmersh said adjusted underlying earnings had fallen 18.1% to £5.9m, while adjusted pre-tax profits dropped 26.4% to £3.9m, reflecting the impact of a two-week shutdown at its Carlton site and weak trading in Belgium. Revenue edged up 1.1% to £35.8m despite a "challenging" backdrop across UK and European construction markets

Gross margins narrowed to 33.6% from 36.2%, and basic earnings per share declined 26.7% to 2.47p. However, Michelmersh still opted to declare an interim dividend of 1.60p, unchanged year-on-year, underlining confidence in its outlook.

UK despatch volumes rose 3%, outperforming a market still 25% below 2022 levels, while order intake remained ahead of manufacturing volumes, supporting a balanced forward book into H2. In Belgium, housing activity fell a further 20%, prompting a temporary halt in production at its Floren facility.

Capital expenditure totalled £3.8m, with investment focused on efficiency upgrades across Carlton, Floren and Michelmersh. Net cash stood at £1.5m, down from £4.1m, but was supported by Michelmersh's new £20m banking facility.

Looking ahead, Michelmersh expects FY25 results to be broadly in line with FY24, with trading momentum improving into H2.

Michelmersh also revealed that chief executive Peter Sharp had stepped down from the job and would be transitioning to an advisory role, with Ryan Mahoney taking the helm and Rachel Warren being appointed as chief financial officer.

As of 1110 BST, Michelmersh shares were down 7.79% at 90p.



Reporting by Iain Gilbert at Sharecast.com

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