MICHELMERSH BRICK HOLDINGS (MBH) – Building Materials
| Price: 83.2p -3.2% | P/E: 12.5x |
| Market Cap: £76m | Yield: 5.4% |
AIM-listed brickmaker Michelmersh warned in September 2025’s performance would be ‘broadly reflective’ of 2024, meaning no increase in profits, but it predicted a return to growth next year.
Today the firm cut its sales and earnings forecasts again due to ‘a notable slowdown in the construction market and activity levels in the final quarter’.
Thanks to substantial capital investment, however, the company is still predicting improved profits in 2026.
Our View
We see Michelmersh as an early indicator of what’s going on in the new-build market, and so far there is no sign of an improvement which belies today’s pop in the housebuilders on the back of lower interest rate hopes.
When the fundamentals turn, we’ll be waiting, but until then the housebuilders are just trading stocks.
Read the press release here:
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
