Michelmersh Brick Holdings has reported an increase in both pretax profit and revenue for the first half of the year, despite challenging market conditions. The company attributes its success to a solid opening order book and strong demand in various sectors.
Profit and Revenue Surge
In the first six months of the year, Michelmersh Brick Holdings saw its pretax profit rise to £6.1 million, up from £5.6 million in the previous year. This growth in profitability is significant considering the current turbulent macroeconomic environment.
Meanwhile, the company’s revenue for the same period reached £42.0 million, showing a substantial increase from £34.0 million previously.
Positive Market Fundamentals
Despite headwinds affecting the brick market, Michelmersh Brick Holdings remains optimistic about future prospects. The demand for new residential and social housing far exceeds supply, creating a critical shortage. Additionally, there is a strong demand for repair, maintenance, and improvement services.
“These market fundamentals support our business, and we will continue to focus on providing competitive pricing to meet the demands of our customers,” stated Chairman Martin Warner.
Order Book and Forward Expectations
Michelmersh Brick Holdings emphasizes that its success can be attributed to its well-balanced order book and diverse range of end markets. Despite a decline in consumer confidence, the company’s current order intake remains robust, ensuring a positive outlook for the second half of the year.
While the company has not provided a specific figure, it affirms its full-year expectations and is strongly committed to managing input costs effectively.
To further reward shareholders, the company’s board has declared an interim dividend of 1.5 pence per share, up from 1.3 pence previously.
In conclusion, Michelmersh Brick Holdings’ strong performance in the face of challenging conditions is commendable. With a solid order book and favorable market dynamics, the company is well-positioned to achieve its full-year targets.