The UK construction materials sector is firmly out of favour, reflected in the moribund share prices of many companies. This presents an opportunity to pick up shares in good-quality companies trading at rock-bottom valuations. One such cash-rich company is our Bonkers Bargain opportunity here, with the security of plenty of tangible assets and cash. In a very challenging market the latest results offerred reassurance, highlighting the quality of this excellent business.
In the construction sector gloom, one small AIM company covered here, manufacturing specialist, high-quality products, looks particularly appealing to us. Specialist manufacturer Established in 1997, Michelmersh Brick Holdings (AIM: MBH) has developed into a major presence in the UK brick market, producing over 122 million clay bricks and pavers each year. The UK brick market is dominated by three large players. UK-listed Ibstock (IBST) and Forterra (FORT) have 43% and 28% market shares respectively, followed by privately owned Austrian group Weinerberger, the world's largest producer of bricks, which has a 21% share of the UK market. Sitting in fourth place, but…
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