Michelmersh builds on increased demand for bricks
BRICK manufacturer Michelmersh has said activity increased in the first six months of this year despite some adverse weather conditions.
The company said its full year results were expected be in line with expectations provided the recovery in prices over cost increases was achieved.
Michelmersh, which has interests in Shropshire, said brick despatches were up 10% during H1, compared with the same six months last year – a like for like increase of 13% if activity from the firm’s Dunton brickworks, which was closed in May 2013, is stripped out.
“This pleasing increase compares to the brick industry as a whole where despatches were flat against the equivalent period in 2012,” said the company in a first half trading update.
UK brick prices were said to have remained largely unchanged in the period while production costs continued to suffer inflationary pressure through increased energy costs.
The firm said its order intake in the second quarter of 2013 had been very encouraging and the third quarter had started well.
Some prestigious orders included Lend Lease’s new Elephant and Castle regeneration scheme, Liverpool University student accommodation, Ercall Wood Technology College in Telford and the Seaburn and Roker redevelopment.
In outlook, it said there were now clear signs that the significant industry de-stocking which started in 2009 had come to an end. While this has still not translated into price recovery, it said there were early signs these stock levels were now under some pressure across the industry.
The firm’s half year results, which are expected to be released on September 2, 2013 will include exceptional costs relating to the closure of the Dunton brickworks, and a profit on the disposal of the company’s 15-acre former brick factory site at Telford, for which contracts were exchanged in late May.
