Michelmersh Brick Holdings (AIM:MBH) reported first-half revenue down 9.5% for the six months to 30 June, as operational integration and a competitive brick pricing environment weighed on the top line.
The AIM-listed specialist brick manufacturer and fabricator lifted gross margin by 340 basis points to 37.0% and Adjusted EBITDA margin by 200 basis points to 18.5%, crediting tighter operational cadence and reorganisation of its manufacturing footprint.
UK market despatch volumes fell around 9% in the period, but Michelmersh's own volumes were down just 2%, a share gain the company attributed to end-market diversity and product quality.
Net debt stood at £5 million, against an available £20 million borrowing facility, though cash from operations declined £1.6 million on weaker Q1 receivables timing.
The board declared an interim dividend of 1.60p, unchanged from the prior year.
Michelmersh restarted brick production at its Romsey site in May after a planned pause, expecting near-full output from the start of August to support second-half margins, while closing all operations at its Charnwood pre-fabricated facility at the end of June following a strategic review.
"We continue to expect the Company to deliver performance within full-year expectations," said Tony Morris, chair, while flagging risks from UK political uncertainty and the Middle East conflict on consumer confidence.
Company-compiled consensus for full-year Adjusted EBITDA stands at £12.9 million to £14.3 million.