Last checked at 29 May 2013 07:00
29 May 2013
Michelmersh Brick Holdings Plc
("MBH" or the "Group")
SALE OF 15 ACRE SITE IN TELFORD, SHROPSHIRE
Michelmersh Brick Holdings PLC (AIM: MBH), the specialist brick, land development and landfill company, is pleased to announce that it has exchanged contracts with Bovis Homes Limited on the sale of the 15 acre former factory site adjacent to its brickworks in Telford, Shropshire for a total consideration of £4.6 million in cash. The consideration is payable as to £1.6 million on completion, with £3.0 million payable in equal instalments on the first and second anniversary of completion, which is expected to take place within four months, after satisfaction of certain conditions. The net proceeds will be used to reduce the Group's borrowings and to meet the cost of the site re-organisation and taxation arising from the sale.
The Group's audited accounts for the year ended 31 December 2012 included this plot of land under "current assets land for sale" at a value of £3.35 million, being the estimated sales proceeds less the associated costs of the sale and estimated costs of reconfiguration of the continuing operational brickwork site.
The Group will now seek to bring to completion the planning matters relating to the 15 acres of land ready for disposal under the Persimmon Option agreement, which should benefit from the precedent set by the above sale.
Martin Warner, CEO of MBH said: "The Board is pleased to achieve the disposal of this parcel of land which now allows the Group to proceed with the ongoing development of brick manufacturing, landfill and other development opportunities both at the Telford site and elsewhere in the Group."
For further information:
Martin Warner, CEO, Michelmersh Brick Holdings | 01442 870 227 |
Stephen Morgan, Finance Director, Michelmersh Brick Holdings | 0774 8900286 |
Tom Griffiths, Westhouse Securities | 020 7601 6100 |
Jeremy Carey/Amy Walker, Tavistock Communications | 020 7920 3150 |
Notes to Editors:
Michelmersh Brick Holdings PLC is the holding company for Michelmersh Brick UK Ltd, a business with five leading market brands: Michelmersh, Charnwood, Blockleys, Hathern Terra Cotta and Freshfield Lane. These divisions operate within a fully integrated business combining the manufacture of clay bricks, tiles and pavers. The Group also includes a landfill operator, New Acres Limited, and seeks to develop future landfill and development opportunities on ancillary land assets.
Established in 1997 by Martin Warner, Chief Executive and Eric Gadsden, Chairman, the Company has grown through acquisition and organic growth into a profitable, cash generative and asset rich business, producing approximately 70 million clay bricks, tiles and pavers per annum. MBH currently owns most of the UK's premium manufacturing brands and is a leading specification brick and clay paving manufacturer.
Recently MBH's products have been successfully used in projects such as the extension of the Lutyens-designed, Grade II Listed, Henrietta Barnett School in Hampstead Garden Suburb, the award-winning Holiday Inn Express in Manchester and the contemporary Falmer Academy building in Brighton. We are also suppliers to high value housing developers such as Berkeley and St James Homes, delivering to key city regeneration projects such as Battersea Reach.
Further information on the Company can be found at www.mbhplc.co.uk