LONDON (Alliance News) - Michelmersh Brick Holdings PLC on Tuesday it hiked its dividend for the first half of 2018 following double digit rises in profit and revenue.
The brick manufacturer reported pretax profit of GBP2.9 million for the six months to the end of June, up from GBP1.4 million the year before, on revenue that rose by 43% to GBP23.1 million from GBP16.2 million.
On an underlying basis, pretax profit rose by 57% to GBP3.8 million from GBP2.4 million, leaving out the exceptional cost of GBP1.0 million related to the acquisition of Carlton Main Brickworks Ltd in June last year.
Revenue rose as a result of a busy period leading to growth in all of Michelmersh's divisions, excluding the Michelmersh Plant which went through a restructuring process, and in spite of difficult weather.
The group currently has a forward order book for over 67 million bricks, up 11% from 55 million the year before.
Michelmersh Brick declared an interim dividend of 1.06 pence per share, up 51% from 0.70p the year before.
The group said it remains confident of its 2018 performance being in line with market expectations, even with Brexit uncertainty and production tending to be slower in the second half of the year.
"The strong growth achieved during the period reflects not only the successful acquisition and integration of Carlton but also improved sales and operational progress across our other divisions. With a robust order book for the rest of this year and into next year, and the market demand for bricks remaining strong, the outlook is positive and we are confident in meeting our full year targets," said Chairman Martin Warner.
Shares in Michelmersh Brick Holdings were up 5.6% at 91.37 pence on Tuesday.
Michelmersh Brick Holdings (MBH)