Brick maker Michelmersh, which won a contract to supply bricks for the redevelopment of St Pancras station in north London last month, has posted disappointing full-year results – its first after floating on alternative investment market in May
The firm posted a pre-tax profit of £292,000, a fall of £13,000 on the £305,000 figure for the six months to 31 May. It blamed this on unforeseen delays in brick and tile-making equipment. Turnover was static at £8.7m.
Martin Warner, managing director, described the year as a “bit of a hiatus” as it geared up to produce 85 million bricks a year, a rise of 20% on present output.
Warner said the firm was investing £5m. Most of the money will go into a facility in Loughborough, Leicestershire, and another at a plant in Telford, Shropshire. The factory in Loughborough makes hand-made bricks that will be used at St Pancras.
Warner said: “The results are only a minor setback.
We have got a lot of investment going in. We should be well placed for the next year.”
Warner said the firm had spent three years pitching for the £700,000 St Pancras contract, which is due for completion in 2007. It will consist of 70,000 standard bricks and more than 6000 non standard facing bricks.
Warner said about half the bricks would be used to renovate the interior of the Gilbert Scott-designed building, which is being refurbished as part of the Channel Tunnel Rail Link terminal at the station, and half would make up the new-build element, which includes an extended roof.
The Michelmersh group was created in 1997 by Warner and chairman Eric Gadsden to buy two of the group’s production facilities, Michelmersh Brick and Tile and Duntons. Turnover has increased from £4m in 1998 to £18.9m last year.
Warner said floating on the alternative investment market was natural. He said: “We built the business with our own money but there’s a limit to how much you can do. It seemed the right moment to move it on.”