Last checked at 20 May 2010 07:00
Michelmersh Brick Holdings plc
("Michelmersh" or "the Group")
AGM Statement
Michelmersh Brick Holdings plc (AIM: MBH) the landfill and land development company and the UK's largest producer of handmade specification bricks and clay paviours, announces that at its Annual General Meeting to be held later today, Eric Gadsden, Chairman of Michelmersh will make the following statement:
I am pleased to report that following the acquisition of Freshfield Lane Brickworks ("Freshfield"), on 31 March, integration of the business into the Group is progressing well and the sale of certain surplus assets of Freshfield is underway, with completion expected in the near future.
The strengthened brand offering, including the Freshfield products has been well received in the market. Sales across the Group are well in excess of equivalent volumes achieved for the same period last year, and enquiry levels are also higher. Hathern Terracotta is also performing well and is now contributing profit.
With regard to the assets acquired with the recent acquisition of Freshfield, we expect to exchange contract on the surplus agricultural land by the end of the month for the sum of approximatley £1.4 million. We have also agreed the sale of two of the residential properties at above book value. The remaining properties are also being marketed and we expect to realise a surplus on these in due course.
We are now in final discussions with Persimmon regarding the land with planning permission, the optioned land and also for the remainder of the site at Telford.
Following the acquisition of Freshfield, the Group has received further funding from Venture Structured Finance, part of ABN AMRO BV secured on its revolving assets, and has taken this opportunity to renegotiate its existing facilities with Venture extending the borrowing period up until 2015.
We continue to explore other opportunities to grow the business by acquisition.
For further information:
| Martin Warner, Michelmersh Brick Holdings plc: | 01442 870 227 |
| Russell Cook/Carl Holmes, Charles Stanley Securities: | 020 7149 6000 |
| Jeremy Carey/Gemma Bradley, Tavistock Communications: | 020 7920 3150 |