AGM Statement

RNS Number : 2148D

Michelmersh Brick Holdings PLC

14 May 2012

 



14 May 2012

Michelmersh Brick Holdings

(The "Company" or the "Group")

AGM Statement

Michelmersh Brick Holdings PLC (AIM: MBH), the specialist brick, land development and landfill company, announces that at its AGM to be held later today, Eric Gadsden, Chairman will make the following statement:

"Trading results for the first quarter of 2012 have been satisfactory, in what is historically the build up to the Company's main trading period during the summer months. Following encouraging activity in January, bad weather in February resulted in lower than expected sales volume for the three month period, also being lower than the corresponding period in the previous year. However, due to operating efficiencies and a strong contribution from land fill activities, the overall outcome for the quarter is in line with management expectations.

The first quarter has also seen progress with the Group's ancillary property assets. The arbitration process to determine the value of the Persimmon option land at Telford has completed a number of phases and a final conclusion is expected shortly. In the meantime, we have submitted planning on the surplus factory land, also at Telford, which is unencumbered by option, and are developing a strategy to realise the asset.

Industry pricing in the Company's market sector is showing signs of an increase as the overcapacity has diminished through competitor closures. This is encouraging for the upcoming main trading period although the wider economy remains difficult and patchy. Competition is fierce for every order, but we are holding our own and maintaining our competitive advantage through a combination of our premium quality and branding. Provided the economic conditions do not worsen, we look forward to the peak activity months of the summer and autumn.

We still anticipate changes taking place within the industry over the near term and are readying the Group to be involved in the opportunities that will inevitably arise, to strengthen and grow our business whether organically or by acquisition."

For further information:

Martin Warner, CEO, Michelmersh Brick Holdings	01442 870227
Stephen Morgan, Finance Director, Michelmersh Brick Holdings	0774 89 00286
Tom Griffiths/Adam Lloyd, Westhouse Securities	020 7601 6100
Jeremy Carey/Amy Walker, Tavistock Communications	020 7920 3150

Notes to Editors:

Michelmersh Brick Holdings PLC is the holding company for Michelmersh Brick UK Ltd, a business with seven leading market brands: Dunton, Michelmersh, Charnwood, Blockleys, Taperell Taylor, Hathern Terra Cotta and Freshfield Lane. These divisions operate within a fully integrated business combining the manufacture of clay bricks, tiles and pavers. The Group also includes a landfill operator, New Acres Limited, and seeks to develop future landfill and development opportunities on ancillary land assets.

Established in 1997 by Martin Warner, Chief Executive and Eric Gadsden, Chairman, the Company has grown through acquisition and organic growth into a profitable, cash generative and asset rich business, producing approximately 70 million clay bricks, tiles and pavers per annum. MBH currently owns most of the UK's premium manufacturing brands and is a leading specification brick and clay paving manufacturer.

Recently MBH's products have been successfully used in projects such as the extension of the Lutyens-designed, Grade II Listed, Henrietta Barnett School in Hampstead Garden Suburb, the award-winning Holiday Inn Express in Manchester and the contemporary Falmer Academy building in Brighton. We are also suppliers to high value housing developers such as Berkeley and St James Homes, delivering to key city regeneration projects such as Battersea Reach.

Further information on the Company can be found at www.mbhplc.co.uk 

 

END

 

 

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