Building once more.
Brick business holds up in downturn
Published: 22 April, 2010
HAMPSHIRE: Reduced losses of £0.99m have been delivered by Michelmersh Brick Holdings for the year to 31 December 2009.
The news was welcomed by the company. It suffered losses of £2.8m during the same period in in 2008.
The group also reported that the results were near break-even at the operating level, despite sharply reduced revenues of £17.9m compared to £24.2m in 2008.
The company said that throughout the year the brick industry has consolidated, with many plants being closed or mothballed.
Since the end of the financial year Michelmersh has raised £3m by way of a placing at 30p a share and acquired the Freshfield Lane Brickworks.
Chairman Eric Gadsden said:"We must continue to be cautious in the current economic situation, particularly with the General Election before us.
"Demand, however, is picking up across each of our works and I am more optimistic.
We also believe that, with 90% of brick production in the hands of three internationally-owned companies, capacity and consolidation issues will be resolved over the next 24 months.”