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: £65.56M
Payout Frequency: Semi-Annual

Next Michelmersh Brick Holdings Dividend

Michelmersh Brick Holdings next goes ex-dividend on 04/06/2026. This will be the Final dividend for 2026.

The dividend per share amount is 3.0000p (GBP) and the payment date is 08/07/2026.

Key Dividend Details

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.

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 (74.55p) = 6.17%

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

Number of Shares:

Payment	Paid	Amount
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