Sale of Baggeridge Brick share keeps Michelmersh in the black

Michelmersh Brick Holdings has kept its head above water with an annual pre-tax profit of £254,000, thanks in large part to the sale of its shareholding of Baggeridge Brick to Wienerberger following its failed bid for the firm.

In its preliminary results for the year ended 31 December 2007, Michelmersh also revealed that its turnover had increased by 13.7% to £24m.

Last year it made a loss of £61,000 but managed to extract a £2.6m profit from the sale of its Baggeridge sharehlding this year, before related costs of £1.1m and interest of £0.4m. Its available cash now stands at £5m thanks to the deal, it said.

Meanwhile it indicated that brick volumes have increased by 17% compared to the previous year despite slower demand due to "poor weather conditions".

Commenting on the results, chairman Eric Gadsden said: "Clearly these are unsettled times in the housing and financial markets.  Energy costs are now rising as are other input costs but demand for bricks, after a stable year in 2007, is reducing, reflecting current demand in the housing market. 

“Despite the uncertainties in the current market place, sales volumes in the first five months of the current financial year are 10% ahead of the same period last year and the Board believes that the Group, with its improved cash position, asset base and strongly rising landfill rates, is well placed.”