Bricks manufacturer Michelmersh Brick believes that destocking has come to an end.
These means that stocks of bricks are reducing but it has not yet had an effect on prices. Michelmersh requires some price improvement in order to offset energy cost increases and achieve its 2013 forecasts. House broker Westhouse forecasts a £200,000 underlying profit for 2013.
Activity improved in the first half even though it was held back by poor weather earlier in the year. Michelmersh despatched 10% more bricks in the first half compared with a flat overall market. The third quarter has started well.
At 35p a share, down 1.5p, Michelmersh is valued at £20.4m.
The interim figures will be published on 2 September and will include costs of shutting the Dunton brickworks and the gain on the sale of 15 acres of land in Telford for a total price of £4.6m.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2013_46.pdf
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.