Baggeridge to benefit from lower gas prices

Baggeridge Brick said it expects to benefit from lower gas prices in the second half of the year.

The group, which is currently subject to a recommended £89m bid by Austrian materials firm Wienerberger AG, said in a trading statement today that gas prices so far this winter have been well below those experienced a year ago.

Baggeridge added that levels of both dispatches and production to date in the financial year to 30 Sept 2007 had been similar to those for the same period last year.

Chairman Alexander Ward said: "Taking account of the volatility of the previous winter, the company hedged its gas price for a significant proportion of its first half requirements and so the full effect of these lower prices is not reflected in trading results to date."

Baggeridge is still waiting for a decision from the Competition Commission after the Office of Fair Trading referred Wienerberger AG’s approach over concerns that the deal would reduce the number of brick suppliers to three - the new company, CRH and Hanson.

A decision is expected in May.