Shares in Michelmersh Brick (MBH) jumped 10 per cent in a very weak market after the brick manufacturer said that profits for the current year will be ahead of previous expectations.
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Rising demand for bricks has led to stronger volume, and Michelmersh has been able to push through price increases as well. The ability to increase output further will come early in 2015 when the group completes a project to increase production at its Freshfield Lane site, which will provide capacity for an additional 6m bricks.
Analysts at Cenkos Securities have raised their forecasts for 2014 from pre-tax profits of £2.3m to £2.8m and EPS from 2.2p to 2.6p, and from £2.9m to £3.1m and 2.7p to 2.9p for 2015 (from £0.2m/0.2p in 2013).
