Business
Grant of Planning Permission
Grant of Planning Permission.
About this update from Michelmersh Brick Holdings Plc
[{"type":"text","content":"\n RNS Number : 2740G Michelmersh Brick Holdings PLC 28 January 2010 \n \n28 January 2010\n\n\nMichelmersh Brick Holdings plc\n(\"Michelmersh\", the \"Group\" or the \"Company\")\n\nGrant of Planning Permission at Telford\nTrading Update\n\n\nGrant of Planning Permission \n\nMichelmersh Brick Holdings plc (AIM: MBH), the specialist brick, land development and landfill company, is pleased to announce that planning permission has been granted by Telford & Wrekin Council for the construction of 170 houses on 16 acres of development land at the Company's site at Hadley, Telford. This constitutes the first phase of the development of 90 acres over the next 10 years in partnership with Persimmon Homes plc.\n\nPersimmon have already made a significant investment in the long term planning of this development and Michelmersh have completed the necessary ground engineering works to enable development of this first phase to commence immediately. \n\nTrading Update\n\nTrading across the Group remains satisfactory in what are extremely challenging market conditions and the Board anticipates that the results for the year to 31 December 2009 will be in line with current market expectations.\n\nThe Company confirms that it is proposing to reduce production capacity at the Blockleys site, focusing production on its higher-value products, and in particular its award winning pavior product range. Michelmersh is one of only two specialist pavior manufacturers in the UK. The Board anticipates that this restructuring will generate significant operational efficiencies, improve the Group's working capital position and will accelerate the release of further land for development at the Telford site.\n\nMichelmersh remains well positioned as a manufacturer of premium, niche brick and other clay products. Although not insulated entirely from the downturn in the UK housing sector, the Group's two key markets are large capital projects, such as St Pancras and the British Library, and the important Repair and Maintenance markets to which Michelmersh supplies the majority of its output. This has enabled the Group to continue production when most of its competitors have been f...