Updates

Michelmersh - Significantly eps enhancing acquisition

February 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Shares in brick manufacturer Michelmersh leapt after it said trading is running ahead of expectations while the outlook remains positive with a strong and well-balanced order book. The group has also put its cash to good use and has acquired Fabspeed, a leading UK brick fabricator and manufacturer of off-site pre-built brick products, for an initial £6.25m, representing 5.3x 2021 EBITDA. The deal is said to be “accretive to earnings” in its first full year before any synergies that should come through cross-selling and distribution efficiencies. Canaccord says it “broadens the product portfolio in a new and growing adjacent market” and has upgraded eps forecasts 12%/20%/21% to 10.1p, 10.4p and 10.7p in the three years e ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Reach

Hollywood Bowl - EBITDA 12% ahead of forecast

Michelmersh Brick - Three “reverse profit warnings” in two years! (May 2024)

Michelmersh (January 2024)

Michelmersh (November 2023)

Michelmersh (May 2023)

Michelmersh (November 2022)

Michelmersh (June 2022)

Michelmersh Brick - Manufacturer of premium bricks beating expectations (February 2022)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X