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Strong order book at Michelmersh

Michelmersh Brick has a forward order book commitment of over 47m bricks; that's up from 45m a year ago.
July 25, 2016

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.

IC TIP: Buy at 57p

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.

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