Michelmersh interim profits rise as UK operations shine

Brick and paver manufacturer Michelmersh saw profits rise in the first six months of its trading year, leading the group to expect to top market expectations for the full-year.

Michelmersh turned in a first-half pre-tax profit of £4.0m on Tuesday, marking a 41% year-on-year improvement, while revenues grew by 17.0% to £27.2m and underlying profits rose 18.0% to £5.2m.

Earnings per share meanwhile increased by 8.3% to 1.15p.

The AIM-listed group credited its stronger-than-expected financial performance to a solid showing from its UK operations and the acquisition and integration of its new Belgian business.

Looking forward, Michelmersh said it had a strong balanced forward order book going into the second half, 7% ahead of the same period last year.

Chairman Martin Warner said: "Following a very strong first half in 2019, and with a robust order book, Michelmersh can look forward to steady trading for the remainder of the year. Stocks across the industry remain at historically low levels and the volume of imported products are increasing.

"The group's performance in the first half of 2019 has continued into the second half and, with the positive backdrop to our markets, the board expects to exceed market expectations for the full year."

As of 1000 BST, Michelmersh shares were up 5.79% at 92.04p.