Primary Recommendations

Michelmersh Brick - Manufacturer of premium bricks beating expectations

February 2022

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.

One of the more rewarding parts of my job is to unearth little gems amongst UK small caps that haven’t yet attracted a large investor following. One such example is AIM-listed Michelmersh Brick, which listed back in 2004 and while it took almost a decade for it to gather real momentum, it’s since more than made up for lost time with sales having risen every year from £26m in 2013 to £53.5m in 2019, in turn increasing pretax profit from just £0.15m to £9.7m. As I am learning, almost 80% of new homes built in the UK are made from bricks and over 90% of these are made from clay, which is shaped, dried and fired in a kiln to create a hard and durable product. Michelmersh, which serves new builds, repair, maintenance & improvement, ...

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

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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.

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