Business
Trading Update & Notice of In
Trading Update & Notice of In.
About this update from Michelmersh Brick Holdings Plc
[{"type":"text","content":"\n RNS Number : 7755D Michelmersh Brick Holdings PLC 18 September 2008 \n18 September 2008\n\nMichelmersh Brick Holdings plc\n('Michelmersh' or the 'Group')\n\n\nTrading Update and Notice of Interim Results\n\n\nMichelmersh Brick Holdings plc (AIM:MBH), the specialist brick, land development and landfill company, will report interim results for the six months to 30 June 2008, on 29 September 2008.\n\nThe results for the first half are expected to be satisfactory, although the impact of increased energy costs and a weakening market will mean that earnings for the period will be lower than anticipated and will result in a reduced operating profit.\n\nThe prospects for the brick trading business are dependent on the ability to recover these increased energy costs in 2009 by passing on these higher costs through a price increase on all products, which is being implemented on 1 October 2008. The Company will, if necessary, seek to implement a further increase in Spring 2009.\n\nThe sharp deterioration in the economy in the past few weeks means there remains considerable uncertainty in the future. This uncertainty is being further fuelled by the withdrawal of credit insurance available to our suppliers and customers \n\nThere is currently no indication of what will trigger a return to normal levels of business. We have therefore implemented a consultation process with employees at three of our works to ensure that production can be reduced, if necessary, to match demand for the forthcoming period.\n\nIn these circumstances the structure of the Group is under review. The brick making operations have a key market position in the UK and in view of the substantial investment made over the last few years the board anticipates that there will be no need for further significant capital expenditure over the forthcoming period. \n\nAt the same time the 16 acres of land at Telford will be ready for construction in the middle of next year. All preparatory work has been completed. \n\nThe Board is exploring various opportunities to exploit Michelmersh's position in the UK brick manufacturing industry and to achieve full value from its land fill operations and property assets. The Board is therefore considering the appropriate corporate structure for the Group given the prevailing market conditions, while a...