But a few names are already reasonably established and still trade at what I’d see as ‘early‑stage’ valuations. One example is Michelmersh Brick Holdings (LSE: MBH).

So what makes it an interesting long‑term candidate?

A good old solid bricky

Michelmersh manufactures clay bricks and prefabricated components for construction, selling under brands such as Blockleys and Freshfield Lane.

In its 2025 results, revenue came in at £68.9m, down slightly from £70.1m, while statutory profit before tax fell to £4.3m and basic earnings per share to 4.02p.

Despite the profit squeeze, the dividend was held at 4.6p per share and operating cash flow rose to £10.9m. That’s rare for a penny stock.

The share price has struggled to recover since the 2008 financial crisis but now could be its time to shine.

The housing push

With Labour targeting 1.5m new homes, housing policy has moved centre stage again. The manifesto talks about mandatory housing targets and the “biggest increase in social and affordable housebuilding in a generation”. That should support demand for materials if those ambitions translate into actual projects.

Using a discounted cash flow (DCF) model, analysts estimate the stock is trading at 39.3% below fair value. Even one of the lowest 12-month targets I found (88p) is still 11.4% higher than today’s price.

The stock’s 2021 high is double today’s price. If it regains that level and continues for another five years, it could realistically triple today’s price.

But construction activity remains weak and Michelmersh’s margins are already under pressure. Net cash has swung to net debt, and management has flagged uncertainty around the timing of customer orders. If Labour’s housing plans don’t materialise, returns could lag expectations and stall the company’s recovery.

Another strong option?

Brave Bison Group (LSE: BBSN) isn’t technically a penny stock any more, as its market cap now sits a little above £100m. Even so, I see it as a small‑cap play with long-term potential.

The company is a “next‑generation marketing and technology partner”, running social‑media campaigns, influencer marketing, e‑commerce services, and its own media network across platforms like YouTube and TikTok.

For 2025, Brave Bison guided net revenue of at least £33.5m, up 57% from £21.3m in 2024, with adjusted EBITDA of at least £6.5m and adjusted profit before tax of at least £5.5m.

That growth is being driven by acquisitions and new client wins, including major names such as Primark and Royal Mail.

But with lots of recent acquisitions, execution mis‑steps or a downturn in digital ad spend could easily hit margins.

Final thoughts

For me, penny‑style stocks are classic high‑risk/high‑reward tools in a diversified portfolio. Many of today’s giants once traded for pennies, but plenty of penny names quietly disappear too.

Businesses like Michelmersh Brick and Brave Bison offer real‑world demand drivers with credible growth plans. Still, the extra uncertainty means they should only be considered as small positions alongside more defensive core holdings.

The real question is whether that mix of risk and potential suits your own long‑term plan. Investing is all about each individual’s unique goals, timeline, and risk tolerance.

Should you invest £5,000 in Michelmersh Brick Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Michelmersh Brick Plc made the list?

Mark Hartley does not hold any positions in the companies mentioned.

The post Could these high-risk/high-reward penny stocks triple their value in the next decade? appeared first on The Twelfth Magpie.

It can happen, and plenty of penny stocks over the years have rewarded shareholders with multi-bagger returns. But many have been wipeouts.

The biggest possible loss is still 100% — the same as with any share, whatever the price. Narrowing the search to companies with long-term track records and positive broker forecasts can help. And I think I might have found a cracker…

I’m talking about UK brick maker Michelmersh Brick Holdings (LSE: MBH), with a share price around 77p at the time of writing and a market-cap of £70m.

Who needs housing?

Michelmersh shares are down 32% in the past 12 months, and 45% over five years. Why? It’s about bricks, it’s about building, it’s about houses, and it’s about the property market.

They’ve all been through a torrid time. A company with a tiny market-cap often doesn’t have the resources to keep it going through the worst days — and that’s a fear. So one of my key criteria for a potential penny stock pick is: low debt when times are good, as debt can kill when things turn bad.

Fortunately, Michelmersh doesn’t operate with a huge amount of debt. Analysts expect £6m-£7m average over the next three years. And that’s only around 10% of 2025 full-year revenue.

Earnings growth

There’s a 75% rise in earnings per share forecast for 2026. And between 2025 and 2028, analysts expect a 113% jump!

The dividend’s expected to grow by a modest 7% over the same three years, which isn’t huge. But it still suggests an attractive 5.9% yield.

So we have a penny stock coming through a tough patch, with a brilliant return to earnings growth on the cards. And there’s a seriously nice potential dividend to be had too. What’s not to like?

Tough trading

Well, full-year results in March showed an 18% fall in adjusted profit before tax. Why? The company said it’s due to:

…timing of capital improvement activities, interruption caused to production through the relocation and closure of Watlington site, and market challenges in the UK and in Europe.

FY 2025 results, 24 March

At the time, Chair Tony Morris added: “We enter the new financial year with continued uncertainty around momentum in the wider UK construction industry.”

We just don’t know how long the uncertainty will continue — it’s gone on far longer than expected, I’d say. And I suspect that could keep Michelmersh shares depressed for a while longer.

Multi-bagger, or bust?

I doubt we’ll see millionaire-tomorrow gains from Michelmersh. But at the same time, I rate its chances of going bust as low. It isn’t a high-risk/no-profit, ‘jam tomorrow’ hope. But I see it as a long-term growth-plus-dividend candidate for my next ISA buy — and investors might do well to consider joining me.

After all, humans will need places to live for generations to come, and they tend to be made of bricks.

Should you invest £5,000 in Michelmersh Brick Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Michelmersh Brick Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post £500 buys 643 shares in this penny stock, expected to grow earnings 75% this year! appeared first on The Twelfth Magpie.

Sadly, finding these winners early on is far easier said than done. After all, there are hundreds of very small penny shares to pick from. But luckily, institutional investors have already started narrowing down the list with their own research. And as of April 2026, there are three tiny stocks that have the potential to be big winners.

Let’s dive in.

3 top professional picks

The three small businesses that institutional analysts have flagged as potentially terrific buys in 2026 are Synthomer (LSE:SYNT), Topps Tiles (LSE:TPT), and Michelmersh Brick Holdings (LSE:MBH).

Each company is fairly unique, but they all target one end-market: construction.

Synthomer, in addition to other products, supplies specialist polymers used in external paints, architectural coatings, and waterproof membranes for roofs. Topps Tiles is the UK’s leading specialist wall and floor tile retailer, supplying both home renovators and home builders. While Michelmersh is trying to help solve the UK’s chronic shortage of clay bricks.

Each business supplies a different part of the construction sector’s value chain. As such, this basket of stocks appears well-positioned to capitalise on the structural tailwinds created by the government’s commitment to build 1.5m new homes without directly competing with each other.

If the share price forecasts are right, investors could be in for some impressive gains over the next 12 months, and possibly even bigger returns over the coming years.

Needless to say, a combined 51.4% potential gain by this time next year certainly suggests that these businesses might indeed be among the best stocks to buy now.

But what’s the catch?

The risks

Despite the government setting ambitious supportive homebuilding targets, the UK construction sector remains genuinely weak on the back of rising raw material and labour costs, made worse by a continuous unaffordable-housing crisis.

As a result, all three businesses are struggling to achieve meaningful revenue and profit growth, with the pressure only amplified for Synthomer and Topps Tiles, whose balance sheets carry heavy debt burdens.

This impact has only been made worse by the escalating geopolitical environment, with costs being driven even higher.

What does this all mean for investors?

The bottom line

While each company has a genuine path to success, external headwinds could nonetheless prevent them from achieving their full potential. And without deep coffers to help absorb the short-term impact, these penny stocks could see their share prices fall much further before a cyclical recovery emerges.

Personally, out of this basket, Michelmersh appears to be in the strongest position, leveraging superior aesthetics and durability to generate some pricing power in a highly commoditised brick market. In fact, that’s why the company now enjoys the biggest operating margins out of the three.

So, while I’m not 100% convinced that Michelmersh is among the best stocks to buy now, it certainly has enough potential to warrant closer inspection.

The post Experts say these are 3 top UK penny stocks to buy in an ISA right now appeared first on The Twelfth Magpie.

A December trading update told us “there has been a notable slowdown in the construction market.” It was, the company said, all about “a challenging macro-economic outlook and the uncertainty of UK Budget policy announcements, which have adversely impacted both consumer sentiment and investment decision making across the sector.”

The Michelmersh share price is down 15% since the start of 2026, after suffering further in the weeks since the Iran war kicked off. The conflict means an almost certain rise in inflation, and little chance of Bank of England interest rate cuts any time soon. And that seems very likely to cause knock-on pressure on the housebuilding industry.

But I see that as short term, and selling the shares as short sighted.

Builder downturn

I’ve included Taylor Wimpey in the above share price chart, to show how closely the brickmaker’s share price is tied to housing. And to me, that says something very positive. Housebuilding must surely pick up. And when it does, I expect the outlook to turn brighter for Michelmersh too.

Michelmersh is a very small company though, with a market cap of just £65m. And that means it could face serious dangers if its business is disrupted — maybe even if it’s only for a short time. Any financial squeeze could prove painful.

Still, with that latest update, the company said it expects adjusted EBITDA of approximately £12.5m for the full year — with results due 24 March. And there was “a broadly cash neutral balance sheet” at the end of December. The cash situation will deserve close attention, but it’s not too scary.

Even with the risks brought by the latest macroeconomic events, I think this is a penny stock well worth considering for a medium-term recovery.

Forecasts

Looking at broker forecasts, we see an average price target of 135p on the stock. That’s 93% ahead of the price at the time of writing. And the top-of-the-range target of 150p suggests a gain of more than 110%.

Now, these targets haven’t been updated to reflect the last few weeks of turmoil in the Middle East. And it might be some time before we get much of a feel for how the industry could be affected.

But as they stand, forecasts show strong earnings growth between now and 2027. And if they come good, it could mean a price-to-earnings (P/E) ratio of only around eight by then.

What next?

I ask myself… what’s the worst that’s likely to happen? And my gut feel is that we might see the building sector recovery set back by maybe about a year — though that’s an educated guess at best. So would I be happy to wait until 2028 for that predicted low valuation?

For sure, yes. And — even with the clear penny stock risk — that’s why I have Michelmersh on my ISA candidates shortlist.

The post This UK penny stock is tipped to double by City analysts! appeared first on The Twelfth Magpie.

Still, for long-term investors, market choppiness can provide a great dip buying opportunity. When conditions improve, earnings at many penny stocks can surge, launching their share prices higher.

Here are three sub-£1 shares I think demand a serious look today.

Michelmersh Brick

It’s not a shock to see Michelmersh Brick (LSE:MBH) shares tumbling. The prospect of rising interest rates is severe as surging oil prices drive inflation. In this climate, demand for new houses could topple.

Yet I think Michelmersh’s 14% share price drop over the past month merits attention. The company now trades on a rock-bottom price-to-earnings (P/E) ratio of 8.4 times.

Make no mistake, the long-term outlook for newbuild demand remains as robust as ever. Industry consultancy Marrons believes 5.4m more homes will be needed in England alone by 2040 to keep up with the booming population. In this climate, brick demand could rocket. Michelmersh is well placed to capitalise on this upswing — it manufactures 125m bricks a year.

Panthera Resources

Gold miner Panthera Resources (LSE:PAT) has dropped 13% in value over the last month. It’s tracked precious metals prices lower as the US dollar has strengthened. A rising buck makes it less cost-effective to buy and hold USD-denominated assets.

I’m confident that gold prices will rebound, however, as the geopolitical landscape becomes more volatile. Adding in fears over global growth, rising inflation, and the long-term direction of the dollar, I’m expecting bullion to rebound strongly as it did earlier in 2026.

Investors have plenty of junior gold miners to choose from. I like Panthera because of the quality of its African mining projects. In January, the company said its Kalaka project in Mali has an exploration target of 3m to 5m ounces of gold. That was up from its earlier estimates of roughly 3m ounces.

Brave Bison

Brave Bison (LSE:BBSN) shares have plunged 8% over the last month. They’ve dropped not only due to broader risk aversion as the Middle East crisis rolls on. Like other tech stocks, the company’s slumped over fears artificial intelligence (AI) will hammer its growth prospects.

This penny share makes and distributes online video content. It’s easy, then, to see how it could be impacted if AI takes off as some predict. Time will tell how far AI disrupts Brave Bison’s operations, though the company sees it as an opportunity and is embracing AI tools itself to drive growth. So far trading remains strong, and revenues here leapt 57% in 2025.

Today the firm trades on a P/E-to-growth (PEG) ratio of 0.2. That’s below the value benchmark of one, and makes the company — like those other penny shares — worth serious consideration.

The post Forget short-term pain! Consider these penny shares for long-term gain appeared first on The Twelfth Magpie.

With such a star billing, I reckon it’s worth a closer look. So let’s see if the stock can live up to these expectations.

Surprise!

Given that the analysts see such strong growth potential, it might come as a surprise to learn that the company in question isn’t a technology stock at the forefront of artificial intelligence (AI). Instead, it makes bricks.

Michelmersh Brick Holdings (LSE:MBH) is the UK’s largest specialist brick manufacturer and owns seven of the country’s leading premium brands.

But due to a “notable slowdown” in the construction industry in the last quarter of 2025, the group had to re-set expectations in December. Revenue for the full year is now forecast to come in at £69m and EBITDA (earnings before interest, tax, depreciation, and amortisation) is likely to be around £12.5m. By comparison, these were £70m and £14m respectively in 2024.

This lack of growth’s clearly a concern. And with revenue and earnings in the tens of millions rather than the billions, it’s a reminder of how small some listed companies can be.

But these things are relative. That’s why many investors are attracted to penny shares. It’s probably going to be easier (and if all goes to plan, quicker) for Michelmersh to double its earnings – and presumably, its share price – than it is for, say, Nvidia.

Tricky trading conditions

However, for its stock market valuation to go significantly higher, it’s going to need a strong recovery in the building sector. On the positive side, despite the slowdown, the company reported in December that it was experiencing “robust customer demand” for its “diverse product offering”.

However, it also said this had been supported by its “collaborative approach to pricing”. This sounds like price cuts to me. It also warned of “uncertain timing of brick despatches”.

Since February 2025, the group’s share price has fallen 20%. One benefit of this is that new investors can take advantage of a 5.4% dividend yield. This is based on amounts paid over the past 12 months (4.6p). Of course, if the construction industry continues to struggle, there’s a strong possibility that it will be cut. But for now, the stock could appeal to income investors.

My view

Personally, after being in the doldrums since the pandemic, I think there are some green shoots of a recovery starting to show in the sector. And there’s some evidence to suggest that the slowdown in the last quarter of 2025 could be a temporary blip. The uncertainty surrounding the Budget appears to have affected confidence.

Another plus is that the stock trades on a lower earnings multiple than its nearest rival, Forterra, which owns the London Brick Company.

Due to their size, penny stocks can be risky investments. With limited financial firepower, there’s little to fall back on should trading take a turn for the worse. However, with this in mind, Michelmersh could be a stock for more adventurous investors to consider.

The post This penny stock could rocket 76% more, says 1 broker appeared first on The Twelfth Magpie.

The FTSE SmallCap Index has risen an impressive 13% over the last year. It could be set for further stunning gains too, as investors pile into cheap penny stocks and other undervalued UK shares.

City analysts believe these British small-caps could surge during the next 12 months and are worth considering. The question is: are these forecasts realistic or simply pie in the sky?

Michelmersh Brick

Michelmersh Brick (LSE:MBH) shares slumped into penny share territory towards the back end of 2025. They dropped as sales weakened in key construction markets. Yet brokers are confident the brickmaker will rebound from this point.

Of the four rating the company, each call it a Strong Buy. And the average share price target is 134.5p, up 63% from today’s levels.

I’m not surprised by these bullish forecasts. A lot will depend on the state of the British economy and its impact on the housing market. But I think demand for Michelmersh’s bricks will accelerate as more interest rate cuts and an ultra-competitive mortgage sector boost sales of new homes.

Its low valuation should also support a share price recovery. Its forward price-to-earnings growth (PEG) ratio is 0.5, below the bargain watermark of one.

Topps Tiles

Topps Tiles (LSE:TPT) might also enjoy a share price bump as construction markets improve. The four City brokers who rate the company are confident, drawing up an average 12-month target of 70.6p per share.

That’s up 65% from today’ levels. Three of those four analysts consider the retailer a Strong Buy, with the other ranking it a Hold.

As with Michelmersh, Topps could underperform depending on economic conditions. On top of this, it has significant competitive pressures to overcome. However, work to improve its digital channels and product ranges puts it in great shape to exploit a market recovery.

The penny stock also looks dirt cheap at today’s prices. Its forward PEG ratio is 0.4.

Iomart

Catching a so-called falling knife is a notoriously risky business. But Iomart (LSE:IOM) — whose share price is down 77% over the last year — could be an attractive dip buy for more adventurous investors to consider.

Four brokers currently have ratings on the cloud computing specialist. Two consider it a Strong Buy, with two giving it a Hold rating. But the average price target is far more promising. At 48.8p, this is up 192% from current levels.

So what might spark a strong share price rebound? Over the past year, Iomart has suffered from high customer churn and increased borrowing costs. However, November’s financials showed some green shoots of recovery, with customer renewal rates up in the six months to September and order bookings at record highs.

Like Michelmersh and Topps Tiles, I think there’s a good chance this penny share bounces back in 2026.

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Today, I’m on the lookout for the best penny shares to buy. And I’ve come across three that City analysts expect to surge in value over the next 12 months.

Here’s why they’re worth serious consideration right now.

Watkin Jones

Watkin Jones (LSE:WJG) is a construction company specialising in build-to-rent homes, affordable housing, and student accommodation. Given the enormous (and growing) shortages in these property segments, the pricing outlook for the company remains highly favourable.

That’s not to say things are totally comfortable right now. Weakness in the UK economy and higher-than-usual interest rates have impacted trading recently. However, the likelihood of sustained rate cuts means sales volumes are tipped to pick up.

Watkin Jones has a strong balance sheet and a decent pipeline to capture these market improvements, too. It had net cash of £80m as of September.

The consensus among City analysts is the builder’s share price will almost double from current levels over the next 12 months, to 55.8p per share.

Premier Miton

Asset manager Premier Miton (LSE:PMI) is also vulnerable in this era of higher interest rates. It’s also a tiny player compared to some of the industry’s other firms, with less financial and brand clout.

Yet, like Watkin Jones, average share price forecasts for the next year are highly encouraging. A 33% rise to 74.2p per share is currently predicted, supported by expected interest rate reductions.

Premier Miton is embarking on widescale cost-cutting to support earnings and offset current market weakness, too. Last month it announced plans for £2m more worth of savings. It’s already achieved roughly £3m worth.

I think this penny stock could thrive over the long term as demographic changes drive investment services demand.

Michelmersh Brick

Michelmersh Brick (LSE:MBH) is highly exposed to interest rate changes and their effect on the housing market. Yet, the broad resilience of homes demand — and the possibility of a pick up when the Bank of England cuts rates — suggests things could be looking up for the building materials supplier.

City analysts broadly agree its share price should surge over the next year. A 59% rise, to 136.5p per share, is predicted. This would clearly take the company firmly out of penny share territory.

The UK’s growing population means a new housebuilding boom looks about to kick off. The government is planning 300,000 new homes each year until 2029.

Michelmersh has financial scope to raise capacity and make acquisitions to better seize this opportunity.

The post Prediction: these 3 penny stocks are tipped to blast off… appeared first on The Twelfth Magpie.

That means they may not be such a cheap deal come next year. But as always with income shares, the true test is in the sustainability.

Do they have what it takes to keep paying dividends in the long run? Let’s have a look.

Nexteq

Nexteq (LSE: NXQ) currently boasts a decent 4.7% yield with a payout ratio near 24%, indicating a sustainable dividend policy that’s well-covered by earnings. The price is down 20% in the past five years but has recovered 17% in just the past year alone.

The Cambridge-based technology solutions company reported a 7.8% slump in profits in its latest results, due to challenging market conditions. But CEO Duncan Faithfull lived up to his name, voicing confidence in the company’s long-term prospects due to high customer retention, ongoing innovation, and expansion into high-growth segments like gaming electronics.

Despite the recent revenue declines, the share price is up 36% this year. This growth is backed by a strong cash position and a low debt-to-equity ratio — both factors that help support dividend sustainability.

However, the earnings dip means the current price looks a bit overvalued. That would be my only concern, as it risks a mild price correction in the short term. Still, as far as cheap income stocks go, I think it’s worth considering.

Michelmersh Brick Holdings

Michelmersh Brick Holdings (LSE: MBH) is often viewed as a relatively defensive stock, focused on steady dividend payments and long-term sustainability. The brick manufacturer’s recent interim dividend of 1.6p is equal to last year’s, reflecting confidence in its cash flow despite some profit pressures.

Its payout ratio’s a bit high, at 80%, meaning it only retains 20% of profits to fund operations. But with an 11-year track record of uninterrupted payments, it certainly seems dedicated to rewarding shareholders. Encouragingly, cash coverage is excellent and it looks undervalued, with a forward price-to-earnings (P/E) ratio of only 10.9.

The company maintains a disciplined capital allocation strategy, balancing dividends and share buybacks while investing in well-equipped manufacturing sites to support future growth. It has a strong balance sheet with zero debt and good liquidity, enhancing dividend sustainability even in market downturns.

Still, there’s always the risk that fluctuating energy costs drag down margins, pressuring profits. Plus, the UK construction sector is inherently volatile, which could limit growth.

But overall, it’s one of the more stable dividend-paying penny shares on the market, so one worth considering, in my book.

Balancing risk

Penny stocks are seldom seen as a safe investment but those that pay sustainable dividends add an element of reliability. Even if prices dip in the short term, the dividends shore up the investment until markets improve. And when the prices are as low as these two, it makes for a very tempting offer.

It’s not every day that reliable, high-yielding penny stocks come along. So I think there may be a very real, untapped opportunity here. But as always, investors should only consider them as part of a well-balanced and diversified portfolio.

The post 2 super-cheap dividend shares to consider while they’re still penny stocks appeared first on The Twelfth Magpie.

However, the selling might have gone too far, at least according to the four City analysts following the stock. They have an average share price target of 136p — some 54% above the current 88p. What’s more, all four rate the stock as a Strong Buy.

Challenging backdrop

Michelmersh is a premium brick and building products manufacturer, operating throughout the UK and Belgium. It sells over 100 products into diverse end markets, including repair, maintenance and improvement (RMI), housing, commercial, urban regeneration, and specification. With around 480 acres of land, it has ample clay reserves.

As the chart shows, the share price has been on a disappointing trajectory since 2021. This is directly related to a drop in UK construction, which has been hit by higher interest rates, cost inflation, and weaker demand.

In 2024, UK brick consumption was around 1.7bn units, down from 2.5bn in 2022. And market despatch volumes today are still 25% below 2022 levels. 

Unsurprisingly then, Michelmersh’s business has been under pressure. In H1, gross margin weakened to 33.6% from 36.2%, partly as a result of an extended shutdown at one of its UK manufacturing facilities. Adjusted EBITDA fell 18% to £5.9m, despite revenue rising 1.1% to £35.8m.

Management warns that the near-term outlook remains murky in both the UK and Belgium. In fact, the company’s Belgium operation was temporarily shut down in Q3 owing to weak demand.

Valuation and yield

However, the good news is that the market has stabilised, while Michelmersh plans to reopen the Belgium plant in Q4. As such, it sees 2025 broadly matching last year’s £71m in revenue.

Next year, management expects a return to growth. This is backed up by current forecasts for £76m in revenue and a 17% increase in net profit (around £8.5m).

Based on this, the penny share is trading at just under 10 times forecast earnings. As mentioned, it’s also offering a 5.3% dividend yield, with the prospective payout well supported by expected earnings.

In September, the interim dividend was maintained, indicating confidence in the outlook for the business. And though the brickmaker has dropped a commitment to a progressive dividend, it did this to have the flexibility to also carry out share buybacks. In April, it authorised up to £2m to repurchase its own stock.

Supportive trends

Make no mistake, the backdrop for brickmakers remains challenging right now. But the medium to long term looks far brighter, with more than 1m new homes set to be built in the UK over the next few years. Belgium has also acknowledged a need to build many more homes.

Looking ahead, the government has committed to reducing red tape around planning approvals, while new English towns have been proposed. Other factors like high immigration, the rise of single dwellers, and an ageing population all point to the need for more houses.

Management says the business is well positioned to take advantage of any recovery in construction activity. With the stock languishing near a 52-week low, and offering a 5.3% dividend yield, investors might want to take a closer look.

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