Valuation - Michelmersh Brick Holdings PLC

A Valuation of Michelmersh Brick Holdings PLC (LON: MBH) on 6 November 2020

The Company

Michelmersh Brick Holdings PLC is a manufacturer of specialist bricks and pavers, and an operator of a landfill site. The company is incorporated, listed and operates primarily in the UK, but has a small (~6.5% of turnover) operation in Belgium. The business was valued in GBP.

The Story

Since being established in 1997, the firm has grown mainly through acquisition and now owns many of the premium brick brands in the UK - including Blockleys, Carlton, Charnwood, Freshfield Lane, Michelmersh, Floren (in Belgium) and Hathern Terra Cotta - and a small landfill operation.

After having to shut for 4-5 weeks in March/April and a phased reopening of their business, the firm is back operating at full capacity and should see revenues and profitability return to pre-pandemic levels within 12-18 months. It seems likely that the construction sector will play a key role in restarting the economy and has avoided being shut again in the UK’s latest round of lockdowns.

Capital expenditure in th…