Telford brick maker reports rising sales and profits

Michelmersh Brick Holdings, the owner of Blockleys Bricks at Trench, increased turnover by 43 per cent to £23.1 million in the six months to June 30.

The group saw pre-tax profit rise from £1.3 million to £2.8 million.

The firm said it was boosted by the acquisition of another brick works, the Carlton site in Yorkshire, which it snapped up for £31 million, as well as the successful restructuring of operations at the Michelmersh plant.

Martin Warner, chairman of Michelmersh Brick Holdings Plc, said: "The strong growth achieved during the period reflects not only the successful acquisition and integration of Carlton but also improved sales and operational progress across our other divisions.

"Blockleys, in particular, has had a very strong first half and it is expected that this strong performance will continue. This reflects the investment put into the plant over the years but also the hard work and expertise of the production and sales teams in place.

"Industry statistics support the backdrop that demand for bricks remains strong, with imports filling shortfalls and industry brick stocks near historic lows.

"Housebuilders remain confident in the near to medium term. The uncertainty around Brexit does not seem to have entered the activity pattern of housebuilding or the repair, maintenance and improvement market, but remains an unknown that could affect the industry going forward.

"Furthermore, two new key high value products were introduced in the first half of 2018 and these will begin to make a positive contribution in the latter part of 2018 and into 2019.

"With a robust order book for the rest of this year and into next year, and the market demand for bricks remaining strong, the outlook is positive and we are confident in meeting our full year targets."

Established in 1997, the company produces more than 100 million clay bricks, tiles and pavers per year.