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LONDON (Alliance News) - Michelmersh Brick Holdings PLC on Monday said its pretax profit nearly doubled in the first half of 2015 on the back of better revenue and improved margins, as it outlined plans to reshuffle its management team at the end of the year.
Michelmersh, the brick manufacturer, said its pretax profit in the six months to the end of June was GBP2.5 million, up from GBP1.3 million, a year earlier. Revenue rose to GBP15.3 million from GBP13.6 million, but the profit also was burnished by a sharp improvement in Michelmersh's gross margin in the half, which increased by 5.3 percentage points to 38.6%.
The company has not proposed an interim dividend.
First-half production volumes for the company increased to 35 million bricks, up from 34 million a year earlier, while dispatch volumes rose to 36 million bricks from 34 million. Michelmersh added its average selling price in the half was up by 9% year-on-year.
"The results for the first half of 2015 demonstrate that Michelmersh continues to make progress in the market. The sound financial base and strong management structures that have been developed over the past few years are now set to deliver continued and meaningful profits, cash flow and allow a continuing dividend stream. The board is set to respond to the opportunities to increase productivity and efficiency through investment in plant and processes," said Eric Gadsden, Michelmersh's chairman.
In a separate statement on Monday, Michelmersh said that, from January 1, 2016, Frank Hanna and Peter Sharp will become the co-chief executives of the business. Hanna is currently the commercial director at Michelmersh, while Sharp is operations director.
Martin Warner, the incumbent chief executive, will remain an executive director but will shift to the role of deputy chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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