Michelmersh Brick Holdings Plc (LON:MBH) said it is primed for a “stronger” second half performance as it posted a solid set of interims, which also showed it had built up a meaningful cash pile.
Pre-tax profits nudged up £100,000 to £2.6mln in the six months to June 30 on turnover steady at £15.3mln.
The company ended the period with £2.7mln in the bank (which compared with borrowings of £800,000 at the same point last year).
Michelmersh is on track to deliver its targets for the full-year, chairman Eric Gadsden said, and is “well positioned” to manage the impact of the EU referendum on the building trade.
The performance was described as “good in a flat market” as the average selling price increased 2% year on year.
"The company performed well in the first half despite the expected weaker market, and is on track to deliver its targets for the full year,” said Gadsden.
“We continue to invest in our plants to increase efficiency, which over the medium term will enable us to outperform the market with on-going creative development of products, investment in process and encouragement of the efforts of its employees.
“The business is profitable, cash generative and supported by a strong and long-term asset base."
The company said the Dunton site, in Chesham, Buckinghamshire, has completed the consultation period ahead of being awarded a landfill licence, which will lead to the “economic realisation” of the asset.
There is no interim dividend with a pay-out expected to be made for the full-year.
“The board recognises the need to provide a meaningful yield to shareholders and has therefore adopted a progressive dividend policy for future years,” Michelmersh added.
The shares rose 4% to £57.75p, valuing the business at just over £46mln.
---ADDS SHARE PRICE---