Michelmersh reports higher turnover after Carlton acquisition

UK-based clay brick manufacturers, Michelmersh Brick Holdings said on Monday turnover in its first half of trading had increased by 6%, with a stronger second half anticipated.

Michelmersh reported turnover of £16.2m for the six months leading to 30 June compared to the £15.5m it posted a year earlier, thanks to both an increase in average selling prices and contributions from Carlton Main Brickworks which it acquired earlier during the year.

EBITDA was flat at £300,000 while pre-tax profits dropped from £2.6m to £.2.4m due to higher employment costs and inflation as a result of the Carlton acquisition.

The firm said it expected a rise in earnings over the second half as the integration of its recently acquired business progresses.

"Output will increase to over 100 million bricks and turnover and EBITDA will significantly increase with immediate effect," said Michelmersh chairman, Martin Warner.

The group's gearing shifted significantly in the half, as it moved from a net cash position of £2.8m on 30 June 2016 to net debt of £20.7m twelve months later.

Earnings per share of 2.37p were posted, a decline of 8% from the 2.57p it saw a year earlier.

Warner said, "This has been another strong period for the Group, which culminated in the acquisition of Carlton Main Brickworks. The integration of Carlton is on track and forward order commitments have increased, positioning the Group for further growth in the second half. This is a transformational period for the business, which will further benefit our customers and shareholders in the future."

As of 0945 BST, shares were down 4.22% to 95.30p.