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Sat November 28 2020

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Brick producer raises funds for output expansion

19 Nov 13 Michelmersh Brick Holdings has raised £10m from a share placing to help raise production capacity.

Michelmersh plans to invest £2.5m at its Freshfield Lane brickworks to increase output by six million bricks a year.

Freshfield Lane currently produces a range of traditional clamp fired machine and handmade stock bricks at a maximum saleable output of approximately 30 million units a year.

To increase this to 36 million, the company will buy new machinery as well as used plant and equipment from within the European brick industry.

With average brick selling prices on the rise, the investment was ‘very timely’, chief executive Martin Warner said, adding that it would ‘boost significantly our potential’.

The company will use the remainder of the net proceeds of the share placing to reduce its overall gearing, for general working capital purposes and to look for acquisition opportunities as and when appropriate.

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