Michelmersh sells Buckinghamshire brickworks site for £2.7m

Brickmaker Michelmersh Brick Holdings has sold a 25-acre former brickworks site in Buckinghamshire for £2.68m to London Green Resources, a waste disposal company.

The AIM-listed company has exchanged contracts for the sale of the former Dunton Brothers brickworks in Chesham, Buckinghamshire, subject to procedures of the Environment Agency, which is expected to take place within 10 days of transfer of the landfill permit, likely to be towards the end of the first half of 2017.

The £2.68m is payable on completion and the proceeds will be added to the company’s cash reserves.

Accounts for the year ended 31 December 2015 included this plot of land in fixed assets as a landfill asset worth £1.25m and, after costs, the expected surplus on sale will exceed £1m.

The uplift in value from 2015, will be credited to revaluation reserves in the company’s financial report for the year ended 31 December 2016, to be released on 20 March.

Meanwhile the company, expected its performance for 2016 to be similar to that for 2015, as cash generation was particularly pleasing with the cash balances exceeding forecasts.

Michelmersh shares were up 2% to 50.50p at 0806 GMT.