Join our community of smart investors

Michelmersh builds supply

Michelmersh Brick Holdings has pushed up production and prices.
February 23, 2015

Brick maker Michelmersh (MBH) has completed a £2.2m expansion of its Freshfields Lane plant, which should lead to a 20 per cent increase in unit production for the site, growing total capacity to 72m bricks a year. With nationwide stockpiles of bricks depleted, Michelmersh has upped supply at the same time as increasing prices by 4.8 per cent.

IC TIP: Buy at 71.5p

Analysts at Cenkos Securities retain their 2014 pre-tax profit forecast of £2.8m and diluted earnings per share of 2.6p, rising to 2.9p in 2015.