Flat performance for brick firm Michelmersh

SPECIALIST brick manufacturer land and landfill company Michelmersh has reported a flat year with operating profit falling slightly and only a modest increase in turnover.

Michelmersh, which has major interests in Shropshire, said group turnover increased slightly to £24.5m (2011: £24.3m) and produced a modest profit of £52,000 (2011: £530,000) despite growing energy and finance costs.

Profits from the brick operations were largely static except that losses incurred at the firm’s smallest works in Dunton accounted for the fall in group profits. The results for the year include a positive performance from landfill despite provision for a bad debt arising at the end of the year.

It said it had made significant progress with land assets during the year and since the year end, and this would provide a strong platform for further initiatives to develop the business over the next 24 months.

Eric Gadsden, chairman, said: “Although the south eastern market continues to be active, margins remain under pressure whilst the slow process of industry adjustment to a smaller marketplace continues. Our niche products enable us to continue to maintain turnover.

“We are uniquely positioned and will be able to move our business forwards over the forthcoming period, particularly considering the progress we are at last making with certain of our land sales.”