Last checked at 1 Feb 2012 07:00
1 February 2012
Michelmersh Brick Holdings Plc
("MBH" or the "Company")
Re-financing and Trading update
Michelmersh Brick Holdings Plc (AIM: MBH), the specialist brick manufacturer and landfill company, announces that it has successfully concluded a refinancing programme, significantly improving the Company's debt profile and achieving a balanced debt structure with appropriate short term working capital.
The Company has entered into a £13 million five-year Term Loan with Barclays Bank replacing facilities with them which expired in 2011. Interest is charged quarterly at LIBOR plus 4%. The Company has also entered into an interest rate cap agreement limiting exposure to LIBOR rates to 2%.
Trading Update
Trading activity in the second half of 2011 was satisfactory, although the market has remained very competitive and energy cost pressures have impacted on both production costs and haulage costs. Order levels are encouraging and weather conditions have helped maintain activity both before and after the Christmas period. The economy in London and the South East, where the majority of our production is sold, remains active.
The Board expects that the Company's results for the year ended 31 December 2011 will be in line with market expectations.
We are also making positive progress with our development activities.
The Company expects to announce full year results for the twelve months ended 31 December 2011 in April when it will provide a further update on trading.
For further information: | |
Martin Warner, Chief Executive, Michelmersh Brick Holdings: | 01442 870 227 |
Jeremy Carey, Tavistock Communications: | 020 7920 3150 |
Tom Griffiths, Arbuthnot Securities: | 020 7012 2000 |
Notes to Editors:
Michelmersh Brick Holdings PLC is a holding company with seven subsidiaries: Dunton, Michelmersh Brick & Tile, Charnwood, Blockleys, Taperell Taylor, Hathern Terra Cotta and Freshfield Lane. Between the subsidiaries it operates a fully integrated business combining the manufacture of clay bricks and paviors, landfill operations and land development.
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 approx. 70 million clay bricks, tiles and paviors per annum. MBH currently owns most of the UK's premium manufacturing brands and is one of the leading specification brick and clay paving manufacturers.
It has completed contracts for a number of high profile projects including the refurbishment of the British Library, St. Pancras Station, Harrods, the Savoy Hotel and the Victoria & Albert Museum, and the construction of a new campus at Kobe University, Japan.
Further information on the Company can be found at www.mbhplc.co.uk