Michelmersh Brick issues profit warning

24th Sep 2012 10:35

Shares in brick and tile firm Michelmersh Brick fell heavily on Monday after the firm said 2012 profits would come in below market expectations.The company said it only expects to break even for the full year after it came up short in the first half and said it would not make this ground up in the second.Group turnover fell to £11.9m from £12.2m in the first half of 2011.This led to a loss before tax of £84,000, compared to £105,000 the previous year, and a loss per share of 0.14p.The results reflected a reduction in landfill income and a decline in construction activity and business confidence, said Chairman Eric Gadsden.He added that lack of funding was still constraining demand despite the many government initiatives to attempt to improve conditions."Although sales prices and income from carbon surpluses are usually stronger in the second half of the financial year, economic conditions do not suggest this will be the case in 2012," he said."In addition, higher than anticipated interest costs will arise following the delay in receipt of the expected cash proceeds of the land disposed under the Persimmon option."Michelmersh shares were down 11% at 1045 folioing the announcement.