Michelmersh aiming to realise potential of Telford land
BRICK supplier Michelmersh is set to try and unlock the commercial potential of land it owns in Shropshire.
The firm said it had submitted a planning application for surplus factory land in Telford and was preparing a strategy to realise value from the asset, which is unencumbered by any conditions.
It is also nearing the end of an arbitration process to determine the value of land also in Telford, which is owned by housing developer Persimmon.
In an AGM statement, Michelmersh chairman Eric Gadsden said: “The first quarter has also seen progress with the group’s ancillary property assets. The arbitration process to determine the value of the Persimmon option land at Telford has completed a number of phases and a final conclusion is expected shortly.
“In the meantime, we have submitted planning on the surplus factory land, also at Telford, which is unencumbered by option, and are developing a strategy to realise the asset.”
Generally, the company said trading in the first quarter had been satisfactory, in what is historically the build up to its main trading period during the summer months.
However, Mr Gadsden said that following an encouraging January, bad weather in February had resulted in lower than expected sales volume for the three month period – which were also lower than the corresponding period in the previous year.
“However, due to operating efficiencies and a strong contribution from land fill activities, the overall outcome for the quarter is in line with management expectations,” he added.
The firm is looking to capitalise on industry pricing within the company’s market sector, which is showing signs of an increase as overcapacity has diminished due to competitor closures.
“This is encouraging for the upcoming main trading period although the wider economy remains difficult and patchy,” said Mr Gadsden.
“Competition is fierce for every order, but we are holding our own and maintaining our competitive advantage through a combination of our premium quality and branding. Provided the economic conditions do not worsen, we look forward to the peak activity months of the summer and autumn.
“We still anticipate changes taking place within the industry over the near term and are readying the group to be involved in the opportunities that will inevitably arise, to strengthen and grow our business whether organically or by acquisition.”
Michelmersh Brick Holdings is the holding company for Michelmersh Brick UK Ltd, a business with seven leading market brands: Dunton, Michelmersh, Charnwood, Blockleys, Taperell Taylor, Hathern Terra Cotta and Freshfield Lane.
