Referendum uncertainty reduced demand for bricks in the first half of the year, but Michelmersh Brick (MBH) remains confident that it will meet full-year expectations. Profit was marginally ahead in the six months to June, and while volumes were down slightly, turnover was maintained, thanks to a 2 per cent rise in the average selling price.
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Production rose from 34.8m to 35.2m bricks, allowing stock levels to return to the equivalent of around 10 weeks of sales, thus ensuring timely delivery to its customers. Crucially, order intake has remained robust, with forward orders equivalent to over 47m bricks. Demand is coming from a revived repair, maintenance and improvement market (RMI) as well as from housebuilders and regeneration projects.