Michelmersh Brick Holdings — FY24 a nadir, but FY25 looks more promising

Although Michelmersh’s (MBH’s) FY24 results reflected tough markets, there are reasons for investors to be more enthusiastic about the outlook. H224 revenue was less poor than H1 and the early weeks of FY25 saw order intake continue to build. Furthermore, with the direction of interest rates expected to be down and government policies supporting spending, the outlook is promising. MBH is also attractively valued versus peers, trading at a material discount, while its yield is close to 5%. Its balance sheet remains ungeared, further reducing risks.