UK's Michelmersh Brick H1 revenue falls 9.5% amid challenging market

Michelmersh Brick Holdings

01/09/2026 07:11

Overview
UK brick manufacturer's H1 revenue fell 9.5% amid challenging construction markets
Adjusted EPS for H1 rose 0.9% as gross margin improved to 37%
Company maintained interim dividend and expects full-year performance within expectations

Outlook
Michelmersh Brick expects FY26 performance within full-year market expectations
Company sees resilient order intake, but timing of call-offs remains challenging
Michelmersh Brick expects H2 operational cash flow to improve net debt position

Result Drivers
MARKET DEMAND WEAKNESS - Co said revenue fell due to ongoing demand challenges in UK construction, especially London and South East
EFFICIENCY AND REORGANISATION - Margin improvement attributed to operational cadence and reorganisation activities
ORDER INTAKE AHEAD OF PRODUCTION - Order intake tracked ahead of manufacturing volumes, but inconsistent call-off rates reflect customer uncertainty

Company press release: ID:nRSA7227Sa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 32.40 mln
 
H1 Gross Margin
 
37.00%
 
H1 Basic EPS
 
GBP 0.03
 
H1 EBIT
 
GBP 3.10 mln
 
H1 Pretax Profit
 
GBP 2.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy."
Wall Street's median 12-month price target for Michelmersh Brick Holdings PLC is GBp108.00, about 45% above its August 28 closing price of GBp74.50
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)