Brick maker Michelmersh returns to profit

Grant Prior 13 years ago
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Michelmersh started making money again during the six months to June 30 as pre-tax profit hit £105,000 following a loss of £634,000 last time.

The return to the black came as turnover ticked-up 14% to £12.2m  as the company enjoyed a 13% rise in the volume of bricks sold to 36 million.

The firm is now benefiting from cost reductions following a major restructuring last year and its focus on the south east and repair and maintenance markets.

Michelmersh managed to increase the selling price of its products with an average price of £336 per thousand compared to £326 last time.

Chairman Eric Gadsen said: “Our distinct product offering, geography and strength in the RMI market mean that we are well placed to maintain our strong independent position in the brick sector.

“Despite cost pressures, in particular energy costs, throughout  the brick manufacturing industry, the larger companies  are holding prices at 2007 levels.

“Margins are therefore under pressure but will recover in an industry where the barriers to entry are high.”

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