Michelmersh Brick Holdings
Website:
Michelmersh Brick Holdings
Index:
AIM
EPIC: MBH
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Building Materials and Fixtures
Market Cap:
£71.52M
Payout Frequency: Semi-Annual
Michelmersh Brick Holdings Dividend Analysis and Summary
Key Dividend Details
- Final dividend: 3.00p per share (FY25)
- Ex-dividend date: 04/06/2026
- Record date: 05/06/2026
- Payment date: 08/07/2026
- Interim dividend (paid): 1.60p
- Total FY25 dividend: 4.60p per share (unchanged year-on-year)
- Status: Final dividend proposed, subject to shareholder approval
Coverage and Affordability
- Earnings cover (statutory): Basic EPS 4.02p vs DPS 4.60p ? c. 0.87x (not covered by statutory earnings).
- Earnings cover (adjusted): Adjusted EPS 7.50p ? c. 1.6x (comfortably covered on an adjusted basis).
- Cash cover: Cash from operations £10.9m vs dividends paid £4.3m ? c. 2.5x cash cover.
- Free cash flow context: CFO £10.9m – capex £5.5m ˜ c. £5.4m; FY25 shareholder returns were dividends £4.3m plus buybacks £2.1m, leading to a small move to net debt.
- Balance sheet/liquidity: Year-end net debt £0.7m (from £6.0m net cash), with a £20m committed facility to Aug-2028 (plus extension options).
Assessment: Sustainability and Growth Trajectory
- Sustainability: The dividend is well supported by operating cash flow and acceptable on adjusted earnings, but not covered by statutory EPS in FY25. Energy hedging (c. 75% of 2026 needs, c. 50% for 2027) helps reduce cost volatility.
- Growth: DPS is flat year-on-year, signalling prudence amid weaker profitability (operating profit down 42.7%) and competitive pricing. Management guides to growth in 2026; if volumes and margins recover and exceptional costs fall away, cover could strengthen, creating room for future dividend growth.
- Capital allocation: Continued balance between investment (£5.6m capex) and shareholder returns (dividends + £2.0m buybacks). Given FY25 free cash flow coverage was tight after buybacks, near-term dividend increases likely depend on trading improvement and/or moderation of repurchases.
Structural/Policy Items Relevant to Dividends
- Operational reorganisation: Closure of the leasehold Watlington pre-fabrication site and relocation to Michelmersh/Charnwood; exit of the Hathern Terra Cotta brand. These drove £2.4m exceptional costs in FY25 but should reduce ongoing overheads and improve efficiency, supportive for future cash generation.
- Share buybacks: £2.0m executed in 2025 (2.13m shares; 4.36m held in treasury overall), modestly reducing ongoing dividend cash outflow per penny of DPS.
- Board changes: CFO stepping down by May 2026; CEO assuming interim CFO duties. Not a policy change, but introduces short-term execution/governance risk.
- Dividend stance: Board reiterates focus on maintaining an “attractive dividend ratio” within a balanced capital allocation framework.
Risks and Flags to Dividend Stability
- Market weakness and pricing pressure: UK brick despatches remain c. 20% below 2022; Belgium significantly weaker, with sector overcapacity and competitive pricing potentially constraining margins and earnings cover.
- Operational variability: Potential for further short-term facility downtime; call-off timing has become less predictable despite order intake running ahead of capacity.
- Earnings coverage: FY25 DPS not covered by statutory EPS; continued reliance on adjusted earnings and cash flow until profitability normalises.
- Leverage/cash deployment: Shift to small net debt and ongoing capex plus buybacks could tighten headroom if trading softens further, though the £20m facility provides resilience.
Read more
Michelmersh Brick Holdings Annual Dividend Yield - 5.75%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/11/2025 |
08/01/2026 |
Interim |
1.60p |
GBX |
| 04/06/2026 |
08/07/2026 |
Final |
3.0000p |
GBX |
Total (Annual Dividends Per Share):
4.60p
Dividend Yield =
Annual Dividends Per Share (4.60p)
÷ Share Price (80p)
= 5.75%
Michelmersh Brick Holdings Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
08/07/2026 |
Final |
3.0000p |
GBX |
| 27/11/2025 |
08/01/2026 |
Interim |
1.60p |
GBX |
| 05/06/2025 |
09/07/2025 |
Final |
3.00p |
GBX |
| 28/11/2024 |
09/01/2025 |
Interim |
1.60p |
GBX |
| 06/06/2024 |
10/07/2024 |
Final |
3.00p |
GBX |
| 30/11/2023 |
11/01/2024 |
Interim |
1.50p |
GBX |
| 08/06/2023 |
12/07/2023 |
Final |
2.95p |
GBX |
| 01/12/2022 |
12/01/2023 |
Interim |
1.30p |
GBX |
| 01/06/2022 |
13/07/2022 |
Final |
2.50p |
GBX |
| 02/12/2021 |
13/01/2022 |
Interim |
1.15p |
GBX |
| 03/06/2021 |
14/07/2021 |
Final |
2.50p |
GBX |
| 05/12/2019 |
10/01/2020 |
Interim |
1.15p |
GBX |
| 23/05/2019 |
28/06/2019 |
Final |
2.14p |
GBX |
| 13/12/2018 |
11/01/2019 |
Interim |
1.06p |
GBX |
| 31/05/2018 |
30/06/2018 |
Final |
1.45p |
GBX |
| 14/12/2017 |
12/01/2018 |
Interim |
0.70p |
GBX |
| 01/06/2017 |
30/06/2017 |
Final |
2.00p |
GBX |
| 26/05/2016 |
30/06/2016 |
Final |
1.00p |
GBX |
| 28/05/2015 |
30/06/2015 |
Final |
0.50p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
1.600 |
3.000 |
GBX |
4.600 |
3.370 |
| 2023 |
1.500 |
2.950 |
GBX |
4.450 |
17.100 |
| 2022 |
1.300 |
2.500 |
GBX |
3.800 |
4.100 |
| 2021 |
1.150 |
2.500 |
GBX |
3.650 |
10.940 |
| 2019 |
1.150 |
2.140 |
GBX |
3.290 |
31.070 |
| 2018 |
1.060 |
1.450 |
GBX |
2.510 |
-7.030 |
| 2017 |
0.700 |
2.000 |
GBX |
2.700 |
170.000 |
| 2016 |
|
1.000 |
GBX |
1.000 |
100.000 |
| 2015 |
|
0.500 |
GBX |
0.500 |
|
Michelmersh Brick Holdings Dividend Calculator
Michelmersh Brick Holdings Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
12.97%
|
| Years of Growth |
–
|
| Payout Ratio |
117.1%
|
| Buyback Yield |
2.15%
|
| Shareholder Yield |
8.05%
|
| P/E Ratio (TTM) | 19.8 |
|---|
| Forward P/E | 10.33 |
|---|
| P/FCF | 63.85 |
|---|
| Earnings Yield | 5.1% |
|---|
| FCF Yield | 1.57% |
|---|
| ROE | 3.86% |
|---|
| ROCE | 4.21% |
|---|
| Profit Margin | 5.3% |
|---|
| Operating Margin | 6.76% |
|---|
| Gross Margin | 34.47% |
|---|