Michelmersh Brick (MBH), the specialist brick maker and landfill company, has revealed that profits for the 2015 calendar year is likely to be slightly ahead of market expectations. The news pushed the shares up over 7 per cent on the day.
After years of subdued trading which precluded any increase in brick prices, Michelmersh has at last been able to make up for lost ground, as the brick mountain built up in the years after the financial crash has now been greatly reduced. In fact, last year saw some bricks being imported to meet the demand from a revitalised housbuilding sector.
Figures for 2015, due for release on 21 March, will have benefited not only from a rise in brick prices but also strong working capital management that will eliminate previous debt and leave a net cash balance of around £2.9m. And the stronger performance is expected to continue, with Michelmersh supported by a strong forward order book.
