LONDON (Alliance News) - Michelmersh Brick Holdings PLC Wednesday said its profit dipped slighted in 2013, despite activity picking up sharply in the second half of the year.
The brick manufacturer, which also operates within the land development and landfill space, posted pretax profit of GBP407,000 for 2013, down from GBP423,000 in 2012, even though revenue rose to GBP25.9 million from GBP23.0 million a year earlier.
Michelmersh said revenue rose 13% during the period despite a sluggish construction sector in the first half of the year. This increase was achieved through the despatch of nearly 7 million additional bricks, the firm said, which enabled it to overcome margin pressure caused by increasing energy costs, generating higher levels of cash from operations.
The company said that, excluding its Dunton brickworks which was closed in May, it despatched 71.5 million units compared with 63.9 million at an average selling price of GBP348 per thousand up from GBP343 per thousand.
"However, in the last two months of 2013 we started to benefit from better selling prices as new work at revised prices were despatched and price increases implemented at the beginning of this year have held," it said.
The company also was boosted by its landfill operator, New Acres, with revenue rising to GBP632,000 from GBP626,000 on a tonnage of 177,000 compared with 200,000 a year earlier.
During the period, the company sold its former land at Telford to Bovis Homes Group PLC. The initial consideration of GBP1.6 million has been received with the remaining GBP3 million due on the first and second anniversaries respectively.
After a "difficult five years" for the brick industry, the company said it is pleased with its start to 2014.
"The road to recovery will take time but is now firmly moving in the right direction from very low levels," Chief Executive Martin Warner said in a statement
"With pricing and demand improving, increased production at our most efficient plant, and the other initiatives which we are working on, we believe that we will be able to more than hold our own in the future and the fruits of many years of hard work will start to become apparent," he added.
The company did not recommend payment of a dividend.
The stock was trading at 68.00 pence Wednesday morning, up 0.4%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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