Shares in Michelmersh Brick Holdings Plc (AIM:MBH) dropped 7% on Tuesday morning after the company warned of ongoing market uncertainty and confirmed a temporary halt to production at its Floren site in Belgium.
The specialist brickmaker reported a largely steady first half, with revenue up 1.1% to £35.8 million, but profits fell sharply.
Adjusted pre-tax profit was down 26.4% to £3.9 million, reflecting pressure on margins and a one-off production shortfall following a two-week shutdown at its Carlton site.
However, it was the cautious outlook that spooked investors. The company said it had stopped production at Floren due to a prolonged slump in Belgian housing activity, with operations not expected to resume until later in the year.
It also said the timing of a wider market recovery remains “uncertain.”
Despite this, the board declared an interim dividend of 1.60p and expects full-year performance to be broadly in line with 2024.
The shares fell 6.7p to 90.9p.