At its annual general meeting on Wednesday (21 May), Michelmersh Brick Holdings announced positive results from Q1.
Chairman Eric Gadsden said: “I am pleased to report that the long-awaited recovery to the construction industry – and demand for Michelmersh’s products – continued into the first quarter of 2014. Volumes for the brick industry increased by 26% against the backdrop of severe weather conditions in 2013.
“More importantly, the industry achieved a long overdue average price increase of 13% for the quarter, as building materials and bricks in particular remain in very short supply. Michelmersh maintained its market premium and matched that percentage increase for the first quarter. The Board expects these trends in demand to continue into the peak trading season.
“Despite political turmoil, energy prices have been more benign than in recent periods and the Group is managing its production costs within budget. The £2.3m investment project to increase capacity at Freshfield Lane by 6m bricks per annum is well progressed and is on schedule to start contributing to volumes in early 2015.
“With the peak sales months still to come, the Board is forecasting continued strong trading and high demand for its premium product. Due to these circumstances, the Board expects the company to exceed current market expectations for the year to 31 December 2014.”
