Michelmersh warns problems have stalled recovery
Brickmaker Michelmersh said pre-tax profit was down a third in the first half as the firm said delays in residential schemes getting building safety sign-off hit its bottom line.
The firm said demand for bricks in the UK remains 25% below the most recent 2022 high point.
Chief executive Ryan Mahoney said: “Low planning approvals process, particularly in London and the South East as a result of the Building Safety Act and the Gateway 2 and 3 regulations, has significantly impacted the recovery momentum in some of our key markets most noticeably in the developer space.”
He said production was outstripping the number of bricks being despatched from its factories and added: “These market dynamics made pricing highly competitive in the first half and we will continue to watch with caution to see if the imbalance in supply and demand continues given the fluctuating market conditions.”
Turnover in the six months to June was flat at £36m but pre-tax profit was down 29% to £3m.
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