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Sat September 21 2019

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Michelmersh Brick outperforms

3 Sep Michelmersh Brick Holdings has reported strong growth in turnover and profits for the first half of 2019, aided by an overseas acquisition.

Turnover for the six months to 30th June 2019 increased by 17.4% over the equivalent period in 2018, of which like for like turnover for the existing UK business grew by 8.6%.

This generated an operating profit of £4.1m (2018 H1: £3.2m) and profit before tax of £4.0m (2018 H1: £2.9m).

On the back of this, the board says the company will beat previous market expectations for the full year.

Belgian brick maker Floren et Cie was acquired in February 2019 for £8.7m, providing Michelmersh with some Euro revenue to hedge against the weakness of the pound.

Despite the acquisition, net debt at 30th June 2019 was down to £15.1m compared to £18.1m a year before.

Chairman Martin Warner said: "Following a very strong first half in 2019, and with a robust order book, Michelmersh can look forward to steady trading for the remainder of the year. Stocks across the industry remain at historically low levels and the volume of imported products are increasing.

“The group's performance in the first half of 2019 has continued into the second half and, with the positive backdrop to our markets, the board expects to exceed market expectations for the full year."

Brick brands owned by Michelmersh Brick Holdings include Blockleys, Carlton, Charnwood, Freshfield Lane, Floren and Hathern Terra Cotta, as well as Michelmersh.

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