Telford brick making group's sales pass £30m mark
The owner of Telford brick maker Blockleys saw its sales pass the £30 million mark last year, it was revealed today.
Michelmersh Brick Holdings, which owns the Trench-based brick producer, grew turnover by 3.4 per cent to £30.1 million after maintaining its average selling price in the face of larger numbers of cheaper bricks on the market.
Pre-tax profits remained stable at £4.5 million, the London Stock Exchange-listed company added.
In a report accompanying the full-year results, chairman Eric Gadsden said: "I am very pleased to report that the Company delivered another strong performance in 2016, which culminated in matching 2015's levels of profit before tax.
"What is more pleasing is that this was achieved despite some challenging operational issues."
He added: "The UK construction sector is facing continued demands to provide increased residential output to meet the housing shortage.
"This will support demand for bricks alongside other products and the short and medium term prospects for our industry encourage investment."
Blockleys has been transformed in recent years so it now produces bricks for high-end projects.
It employs 53 staff in Telford, and has provided bricks for ITV's new centre at Media City in Salford, Suffolk County Council, and Network Rail's new building in Warwickshire.
Blockleys' revenue declined over the course of 2016, falling by 4.5 per cent to £7.12 million, although its profits edged £30,000 higher, clocking in at £2.16 million.
It still has the second-highest turnover of the group's four brick making businesses, which also include Loughborough-based Charnwood, Sussex-based Michelmersh, with West Sussex-based Freshfield Lane the largest of the group's operations.
The group despatched 69.4 million bricks during 2016, and increase of four per cent on the previous year, and said it may have despatched more had output not reduced by 1.3 per cent.
Bricks produced fell across the group from 69.5 million to 68.6 million because yields from the Michelmersh factory were affected by clay geological issues in its quarry.
The company has invested in its operations, and said it would continue to do so in 2017, focusing on yield and energy efficiency projects in its existing kilns and dryers.
The Group also plans to take on an extensive engineering review of its key manufacturing assets to identify "further plant maximisation and risk reduction projects".
"The positive indicators and market fundamentals look set to continue," said chief executive Frank Hanna.
"There is a widely accepted need and publicised government drive for delivering new housing. We believe this backdrop presents significant opportunities for the group."
Mr Gadsen, who is to retire from his position as chairman at the next AGM, added: "The group sits in a well-defined segment of the UK brick sector; our high quality products set technical standards and our service levels are recognised by our customers.
"We continue to develop the business around our product offering and commitment to our customers."
