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Michelmersh Brick Holdings PLC doubles divi as it wipes out its debts

Output rose 3% in the year to December and the average selling price increased by 9%
Michelmersh Brick Holdings PLC doubles divi as it wipes out its debts
Brick by brick: The company is building a solid financial foundation.

Michelmersh Brick Holdings Plc (LON:MBH) doubled the dividend after a strong year operationally and financially – one in which it wiped out debt and grew profits by 77%.

While output rose 3% in the year to December, the average selling price increased by 9%. This lifted turnover to £29.1mln, while pretax profits grew to £4.6mln from £2.6mln the year earlier.

The brickmaker generated £6.6mln in 2015, which means the company was sitting on a £2.9mln cash balance at the end of the year, compared with £2.1mln of debt at the start.

The payout, meanwhile, will increase to 1p from 0.5p a share.

During the period Michelmersh completed the expansion of the Freshfields Lane site on West Sussex, while deploying packing robots at its facility in Telford in Shropshire.

"The group has had a very good year both in terms of reported results but also with the continued development of management and systems, all of which means the group is well placed to continue its success in the future, said chairman Eric Gadsden.

“The product offering remains targeted at premium sectors and our service levels are wedded to our key customers.

"MBH occupies a defined sector within the brick industry and the board is committed to invest in process and people to maximise the returns of the business.”

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January 16 2017

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