Brick manufacturer Michelmersh Brick has sold 15 acres of land in Telford for £4.6m.
There will be £1.6m paid on completion and £1.5m on each the first and second anniversary of completion.
The land was valued at £3.35m in the balance sheet but there will be some costs of the transaction.
Persimmon has an option over a further 15 acres of land.
Michelmersh is gaining market share and volumes have improved by 3% in the first quarter of 2013 even though the market has contracted. Selling prices have been maintained by Michelmersh. Michelmersh is closing its Dunton brick factory ad there will be redundancy costs. This is the smallest of the company’s plants. Landfill development will be speeded up and Michelmersh is considering what to do with the rest of the 26 acre site.
The last reported NAV was 61p a share, although the Dunton closure will knock £250,000 off the NAV – around 1p a share – although this should be offset by the Telford gain. At 32.5p a share, up 2p, Michelmersh is valued at £18.9m.
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