Michelmersh Brick dips into the red with interim loss

Michelmersh Brick, the specialist brickmaker, has gone into the red with an interim pre-tax loss of £480,000.

The latest figures covering the six months to 30 June 2008 show turnover 6% higher at £13m. There was a profit of £93,000 in the comparable period in the previous year.

Eric Gadsden, chairman, said: “The market place continues to change dramatically but there is an underlying demand for housing and consequently bricks. In the future there will be a change in the customer base and the distribution of the product will become more important.

“We are well placed to respond to these changes. The directors are undertaking a review of distribution arrangements and strategy along with a focus on high value products.  

“Since the half-year, sales have continued to be satisfactory but the housing market is experiencing considerable difficulty.

“It must be considered that the withdrawal of credit insurance across the industry heightens trading uncertainty. 

Michelmersh’s progress in obtaining detailed planning consent on 5 ha of land at Telford has been slower than anticipated.

The group has higher stocks of bricks at £9.6m (2007 figure: £8.4m) which reflects a continuous period of production. Michelmersh also has a stockpile of clay extracted in 2007 which can be stored indefinitely.