Michelmersh Brick Holdings Plc (AIM:MBH) the bricks are wonderful but it’s all about the land
The half year results from the specialist brick maker for the six months to 30th June 2012 revealed net asset value of 60p per share (H1 2011: 64p). While the Group produced 35.1m bricks in the first half for high profile projects including University of Cambridge and Harrods investors have their eye on the Group's building land.
The recent announcement that outline planning consent has been granted for its 15 acre site in Telford relating to the residential development of up to 185 dwellings has therefore boosted the shares considerably. However, despite the recent rise, at 31p they remain nearly 50% below net asset value. Should operating performance also improve the shares could really start to fly!
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