Michelmersh Brick Holdings has announced its interim results for the six months ending June 30, 2014, seeing increased brick prices.
The financial results were:
- Operating profit of £1.4 million
- An 8% increase in group turnover
- Net debt at 30 June, 2014 of £5.3 million, compared with £18.7 million in 2013
- Earnings per share of 1.24p
- Net asset value of 57.6p per share.
Operating highlights included supplying products to projects across the country such as Nottingham Railway Station and the regeneration of Elephant and Castle. Michelmersh also released the following operating results:
- Manufactured 33.7 million bricks, compared to 33.4 million bricks in 2013
- Despatched 34.0 million bricks at average selling prices 12.8% ahead of 2013
- Completed the re-structuring of the Telford Site following the land sale to Bovis Homes.
Commenting on the results, Eric Gadsden Chairman of Michelmersh Brick Holdings, said: "The brick industry is benefiting from recovering demand and we have now seen for the first time since 2008 signs of increased national brick prices with stocks at their lowest level in living memory.
"Michelmersh continues to provide quality products with high service levels to our strategic partners and our product range is being developed to ensure that we maximise the contribution from our premium offering. The group is well positioned to prosper from improved industry dynamics, particularly as our additional production comes on stream and we progress our various asset opportunities.
"In the first half of 2014, the group has achieved average price increases of 12.8% over the equivalent period in 2013. If we maintain this performance, which seems likely in the current construction climate, the profit before taxation for the year to 31 December, 2014 will exceed current market expectations."