Interim Results

Michelmersh Brick Holdings PLC
26 August 2004

Embargoed until: 07:00hrs 26 August 2004


                          Michelmersh Brick Holdings plc
                         ('Michelmersh' or the 'Group')

            Maiden Interim Results for the 6 months ending 31 May 2004


Highlights

   • Turnover of £8.7 million (2003: £8.7 million)
   • Cash generation was strong with net cash inflow from operating
     activities up 117 per cent. to £529,000 (2003: £244,000)
   • Net assets up by 126 per cent. to £30.9 million (2003: £13.7 million)
   • Half year figures impacted by delays to new natural gas pipeline and
     restarting production at Michelmersh Brick
   • Demand remains high for the Group's products
   • Comprehensive investment programme on schedule
   • St Pancras Station- major contract secured

Eric Gadsden, Chairman, commenting on the results said:
'I am delighted to report that demand for Group products remains high and I am
confident that our capital investment will result in increased production levels
and improved efficiencies. We are now positioned to exploit our success,
profitability and balance sheet strength, to further develop the business
through both organic and, where appropriate, acquisitive growth. We look forward
to the future with confidence.'

Enquiries:

Martin Warner                                  Tel: [phone]
Managing Director

Russell Cook / Mark Taylor                     Tel: [phone]
Charles Stanley & Co Ltd

Jeremy Carey / John West                       Tel: [phone]
Tavistock Communications


CHAIRMAN'S STATEMENT

In presenting these our maiden half year results I would like to welcome new
shareholders to our company following the successful listing on the AIM market,
in May 2004.


Financial Results

We are pleased to report that turnover for the half year was £8.7 million which
is virtually unchanged from the previous year. This is a particularly strong
result, given that the previous year's figures included a large element of
de-stocking and that this year has seen significant disruption of production as
a result of the various modernisation works being carried out at all four of the
Group's works. In particular Michelmersh Brick experienced unforeseen delays in
the installation of new brick and tile making equipment and completion of the
natural gas pipeline. This delayed the restart of full production resulting in
the loss of approximately one million units which impacted our gross margin in
comparison with 2003.

The Group returned a profit before tax of £13,000 (2003: £305,000 excluding the
credit of negative goodwill of £372,000). The Board is not declaring an interim
dividend but is committed to the payment of a final dividend.

Operational Review

As previously stated, it is our intention to continue our capital investment to
raise production to 85 million bricks per annum by the end of this year. Our
production in the first half was 34.5 million bricks and during that period we
continued to invest significantly to increase capacity.

At all four factories we envisage that the work will be completed by the year
end, which will enable us to lift production in 2005 with no additional labour
being required except a few handmakers at Charnwood. We have already 
successfully  commissioned the robotic equipment at Blockleys and this has had a
positive impact on productivity.

Outlook

Despite this initial delay at Michelmersh Brick, the major part of the works are
now completed and production levels are already recovering. As a result of this
our deliveries in July were at an all time record. However, it is unlikely that
we shall be able to make up for the shortfall in sales and production seen in
the first half.

Demand for our products has been strong throughout the year and whilst we
envisage this continuing, the sales team will be focussing their efforts this
autumn on securing forward orders to take account of the higher level of
production.

In particular we are delighted to announce that Charnwood Forest Brick has
recently secured the contract to supply facing bricks for the Grade 1 listed St
Pancras Station. In addition to 70,000 standard bricks more than 600,000 non
standard facing bricks have been specified for the London terminal of the
Channel Tunnel rail-link. These have been specially developed at the factory to
ensure a match to the existing facades of the Gilbert Scott designed building.
The project is due for completion in 2007. This is a major commission for the
business and will ensure that full capacity is utilised in the extended factory
over the forthcoming period.

Even though we have not yet fully completed investment in new manufacturing
capacity, the progress and increased capacity that we have achieved has enabled
us to keep up with current demand.

We will complete the expansion programme before the start of the next financial
year and this will bring our four works up to a standard where we can deliver
our customers' expectations in terms of quality and service, both reliably and
at an enhanced level of profit. I am confident that the 2005 results will show
the full benefits of these investments.

Eric Gadsden
Chairman
25 August 2004

                         MICHELMERSH BRICK HOLDINGS PLC
                      CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                  Half Year to      Half Year to        Year to
                                      31.05.04          31.05.03       30.11.03
                                          £000              £000           £000
                                     Unaudited         Unaudited        Audited

TURNOVER                                 8,687             8,707         18,871
Cost of Sales                           (6,578)           (6,282)       (13,000)
                                       --------          --------      ---------

GROSS PROFIT                             2,109             2,425          5,871

Administrative Expenses - normal        (2,019)           (1,464)        (3,132)
Administrative Expenses - exceptional        0                 0          1,573
Other Operating Income                     169                27             64
                                       --------          --------      ---------

OPERATING PROFIT                           259               988          4,376

Interest Payable and
Similar Charges                           (246)             (311)          (535)
                                       --------          --------      ---------

PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                             13               677          3,841

Tax on profit on Ordinary Activities         0              (104)          (490)
                                       --------          --------      ---------

PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                              13               573          3,351

Dividends (Non Equity)                       -               (30)           (60)
                                       --------          --------      ---------

RETAINED PROFIT FOR THE YEAR                13               543          3,291
                                       ========          ========      =========

Earnings Per Share
                     Undiluted            0.00p             1.89p         11.40p

                       Diluted            0.00p             1.89p         11.40p



                            CONSOLIDATED BALANCE SHEET

                                  Half Year to      Half Year to        Year to
                                      31.05.04          31.05.03       30.11.03
                                          £000              £000           £000
                                     Unaudited         Unaudited        Audited
FIXED ASSETS
Intangible Assets 
- positive goodwill                         65               107             86
Intangible Assets
- negative goodwill                          -            (1,987)             -
                                       --------          --------      ---------
                                            65            (1,880)            86

Tangible Assets                         36,607            24,486         34,908
Investments                                  -                 -              -
                                       --------          --------      ---------
                                        36,672            22,606         34,994
CURRENT ASSETS
Stock                                    4,517             4,655          4,321
Debtors                                  4,348             4,347          4,042
Cash at Bank and In-hand                     1                 4             11
                                       --------          --------      ---------
                                         8,866             9,006          8,374

CREDITORS : Amounts Falling due
Within One Year                        (10,853)          (10,523)        (9,465)
                                       --------          --------      ---------

NET LIABILITIES                         (1,987)           (1,517)        (1,091)
                                       --------          --------      ---------

TOTAL ASSETS LESS
CURRENT LIABILITIES                     34,685            21,089         33,903

CREDITORS : Amounts Falling due
After More than One Year                (2,495)           (6,564)        (6,421)

PROVISIONS FOR LIABILITIES
AND CHARGES
Deferred Taxation                       (1,209)             (823)        (1,209)
                                       --------          --------      ---------

NET ASSETS                              30,981            13,702         26,273
                                       ========          ========      =========

CAPITAL AND RESERVES
Called-up Share Capital                  7,604             6,150          6,150
Share Premium Account                    3,481                -               -
Revaluation Reserve                     15,199             5,406         15,199
Profit & Loss Account                    4,697             2,146          4,924
                                       --------          --------      ---------

SHAREHOLDERS' FUNDS                     30,981            13,702         26,273
                                       ========          ========      =========

Equity Shareholders' Funds              30,981            12,742         25,283
                                       ========          ========      =========

Non Equity Shareholders' Funds               -              960             990
                                       ========          ========      =========


                        CONSOLIDATED CASH FLOW STATEMENT

                                  Half Year to      Half Year to        Year to
                                      31.05.04          31.05.03       30.11.03
                                          £000              £000           £000
                                     Unaudited         Unaudited        Audited

Net Cash Inflow from 
Operating Activities                       529               244          3,389

Returns on Investments and
Servicing of Finance
Interest Paid                             (246)             (248)          (497)
                                       --------          --------      ---------

Net Cash Outflow from
Returns on Investments
and Servicing of Finance                  (246)             (248)          (497)

Taxation 
Corporation Tax Received / (Paid)            -                 -              -
                                       --------          --------      ---------

Taxation Paid                                0                 0              0

Capital Expenditure
Purchase of Tangible Fixed Assets       (2,206)             (953)        (1,903)

Sale of Tangible Fixed Assets                -                 -              6
                                       --------          --------      ---------

Net Cash Outflow from 
Capital Expenditure                     (2,206)              (953)       (1,897)
                                       --------          --------      ---------

Net Cash Inflow / (Outflow)
before Financing                        (1,923)              (957)          995

Financing

Capital Element of 
Hire Purchase Payments                      (6)                 -            (8)
Shares Issued                            5,180                  -             -

Cost of Floatation                        (485)                 -             -
Repayment of Long Term Loan             (3,725)                 -             -

Repayment of Bank Loan                    (188)              (182)         (363)
                                       --------          --------      ---------

Net Cash (Outflow) / Inflow
from Financing                             776               (182)         (371)
                                       --------          --------      ---------

Increase / (Decrease) in
Cash in the Period                      (1,147)            (1,139)          624
                                       ========          ========      =========


Notes

1. The figures for the half year ended 31 May 2003 & 2004 are unaudited
   and do not constitute statutory accounts.

2. The figures for the year ended 30 November 2003 are abridged from audited
   accounts which are filed at Companies House and on which the Company's
   auditors Solomon Hare LLP gave an unqualified opinion.

3. Earnings per share of 0.0p have been calculated based on the profit
   after tax, and the weighted average number of shares in issue of 28,767,857
   during the 6 months ended 31 May 2004. Comparative periods have been adjusted
   following conversion of the £1 ordinary shares into 20p ordinary shares to
   ensure consistency of disclosure.

4. Taxation is based on the unaudited results at the expected rate applicable.

5. The directors are not proposing a dividend.

6. A copy of this announcement will be sent to shareholders and is
   available at the Company's registered office, 121 High Street, Berkhamstead,
   Herts, HP4 2DJ.





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