Michelmersh Brick Holdings PLC Trading Statement (1153N)
October 21 2016 - 2:00AM
UK Regulatory
TIDMMBH
RNS Number : 1153N
Michelmersh Brick Holdings PLC
21 October 2016
21 October 2016
Michelmersh Brick Holdings Plc
("MBH" or the "Group")
TRADING UPDATE
Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick
manufacturer and landfill company, today provides a trading update
following the third quarter.
The UK brick market has been experiencing falling output and a
small increase in despatch volumes as manufacturers respond to
market demand. The Group's ability to make the previously expected
pricing gains in the second half has been impacted by average
selling prices not rising to the levels anticipated and increased
competition. Falling average selling prices across the market in
2016 suggest there will be little or no recovery in prices at the
start of 2017.
Changes in the materials supply market have required the Group
to re-source the carbon additive used in brick manufacturing at
Freshfield Lane. Whilst this process has been successful, the
higher levels of output yield enjoyed over recent periods are
likely to be slightly reduced going forward, being more in line
with historic trends.
The landfill licence for the former Dunton brickworks has been
granted and associated works completed. The Board expects an
economic return on this asset in the coming months.
Due to the above events, the Board has revised its financial
expectations for the current year and believes revenue and profit
will be at or around a similar level to that report for the full
year 2015. The Board is pleased to report that the Group's order
book remains strong, 5 per cent. ahead of that at the half year and
cost savings have been identified that help to mitigate the effect
of negative market trends. The operational issues at the
Michelmersh site reported at the half year have also been addressed
and the site is moving back to full operational capacity. Cash flow
is also strong and the Group expects to meet or exceed the Board's
previous cash expectations at the year end.
The Board is committed to continued investment in process and
people with a view to provide premium products to a marketplace
that demands quality and service. Our cash resources and cash
generation allow us to seek investments that improve efficiency and
continue to reward investors with a steady growth in dividends. The
Board reaffirms that strong long-term housebuilding and RMI market
fundamentals remain in place for the forseeable future and that the
Group is well positioned to grow market share in the coming
years.
The results for the full year are scheduled for release on 20
March 2017.
This announcement contains inside information.
Enquiries: Michelmersh Brick Holdings
Frank Hanna, Joint CEO
Stephen Morgan, Finance Director 01825 430 413
Cenkos Securities plc
Bobbie Hilliam (NOMAD)
Harry Pardoe
Alex Aylen (Sales) 020 7397 8900
Yellow Jersey PR
Charles Goodwin 07747 788 221
Dominic Barretto 07768 537 739
About Michelmersh Brick Holdings PLC:
Michelmersh Brick Holdings PLC is a business with five market
leading brands: Blockleys, Charnwood, Freshfield Lane, Michelmersh
and Hathern Terra Cotta. These divisions operate within a fully
integrated business combining the manufacture of clay bricks, tiles
and pavers. The Group also includes a landfill operator, New Acres
Limited, and seeks to develop future landfill and development
opportunities on ancillary land assets.
Established in 1997 the Company has grown through acquisition
and organic growth into a profitable and asset rich business,
producing approximately 72 million clay bricks, tiles and pavers
per annum. MBH currently owns most of the UK's premium
manufacturing brands and is a leading specification brick and clay
paving manufacturer.
Michelmersh strives to be a well invested, long term,
ustainable,environmentally responsible business. Opportunity,
training and security for all employees, whilst meeting the needs
of stakeholders are at the forefront of everything we do. We aim to
lead the way in producing some of Britain's premium clay products
and enhancing our built environment by adding value to the
architectural landscape for generations to come.
We are Michelmersh Brick Holdings PLC: we are "Britain's Brick
Specialist".
Please visit the Group's websites at: www.mbhplc.co.uk and
www.bimbricks.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLFFSIILLIFIR
(END) Dow Jones Newswires
October 21, 2016 02:00 ET (06:00 GMT)
Michelmersh Brick (LSE:MBH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Michelmersh Brick (LSE:MBH)
Historical Stock Chart
From Apr 2023 to Apr 2024