Michelmersh Brick Holdings (LSE:MBH) reported first-half 2026 revenue of £32.4 million, down 9.5%, as activity across the UK construction market remained below previous levels.

Gross margin increased to 37.0% during the period, while adjusted EBITDA was slightly higher following integration and efficiency measures implemented across the business.

UK industry brick despatch volumes were approximately 9% lower and remained more than 25% below their 2022 peak. Against this backdrop, Michelmersh increased its market share during the period.

Capacity changes implemented across manufacturing operations

Michelmersh has adjusted production capacity in response to current market conditions. Production at its Freshfield Lane operation was reduced by 30%, while manufacturing restarted at Romsey.

The group also closed its Charnwood pre-fabricated facility and transferred the associated production lines to its core brick manufacturing sites.

Management said order intake is currently running ahead of production, although ordering patterns remain volatile.

Interim dividend maintained

Michelmersh maintained its interim dividend and reported net debt of £5 million. The group also has access to a £20 million facility.

The board expects full-year performance to remain within market expectations. However, it identified political uncertainty in the UK and the continuing conflict in the Middle East as factors that could affect consumer confidence and construction activity.

Michelmersh Brick Holdings is a specialist brick manufacturer and brick fabricator serving the UK and northern European construction markets. The group supplies clay bricks and pre-fabricated brick products for new-build and refurbishment projects.