26th Mar 2019 10:28
LONDON (Alliance News) - Michelmersh Brick Holdings PLC on Tuesday said its forward order book is 11% ahead on the prior year as it reported record earnings.
The brick maker posted pretax profit of GBP6.4 million for 2018, almost doubled from GBP3.3 million recorded a year ago. Revenue climbed 22% to GBP46.3 million from GBP37.9 million.
Production reached a "record" 106 million units, despite a fall in output due to a restructuring of operations at its Michelmersh plant near Romsey in Hampshire, England.
Michelmersh is paying a final dividend of 1.45 pence per share, taking the total to 3.2p for 2018, 49% above 2017 after improved performance, "satisfactory" debt, and confidence for the future.
Net debt at the end of the year was under GBP12 million, from GBP17.5 million year-on-year.
The order book is likewise a record. Michelmersh did not give an exact figure, but said it was 11% ahead year-on-year as of the end of December.
"I am delighted to report on another significant year of growth and achievement for the group," said Chair Martin Warner.
"The exceptional financial performance exceeds that of previous years, with the growth in earnings maintaining the group's progressive dividend policy."
Looking ahead, Warner commented: "As in previous years, the outlook for the coming year is positive in that demand for our products remains strong and the operational environment conducive to a robust brick industry.
"The UK still manufactures less bricks than being used and capacity cannot change significantly over the short term."
"Whilst Brexit has raised many concerns across the UK business landscape, a specific review of markets, customers and suppliers has not revealed significant threats to our business other than a wider economic downturn, whilst the political landscape around the construction industry gives an expectation that it will be less affected than elsewhere."
Shares were 3.2% higher on Tuesday morning at 90.80 pence each.
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