Brick maker Michelmersh plans buying spree

Grant Prior 10 years ago
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Brick maker Michelmersh is back in the black after recording an operating profit of £1.5m in the year to December 31 2011 after a £500,00 loss last time.

Turnover ticked-up 4% to £24.3m as the firm sold 70m bricks at an improved average price of £345 per thousand compared to £330 in 2010.

Michelmersh said the market is divided geographically and by product type and expects further consolidation in the sector this year.

Chairman Eric Gadsden said: “The market is not only divided geographically, but also between ‘stock’ bricks required for appearance, (often driven by planning conditions), and ‘wire-cut’ bricks which are in good supply and serve the economically weaker areas of the country where volume house builders are more active.

“Our competitors have made further plant closures in 2011 and already in 2012.  Our business will in due course benefit from the reduction in over capacity in the high end, quality brick market.

“We are aware of a number of potential opportunities to grow our business and we will consider all of these, and believe that we are uniquely able to progress and lead them.”

The company is also looking forward to further improvement in the market this year.

Chief executive Martin Warner said: “Whilst 2012 has started reasonably well, we believe that this year will enjoy a stronger second half.

“We firmly believe that there will be further opportunities in our chosen field and we have the team and resources in place to make the right strategic decisions and to build a leading position in our market.”

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