Michelmersh Brick reports rising brick prices will lead to profit boost

19th Oct 2015 09:07

(ShareCast News) - Full year profits at Michelmersh Brick (MBH) will beat current forecasts as the brick-and pavior-maker benefited from rising selling prices in the second half, which may have wider implications for the construction sector.The AIM-listed company said there had been a "softening of the market" that had resulted in weaker delivery volumes, below previous expectations, however average selling prices were ahead of those budgeted.The company's profits are also being boosted by operating efficiencies, continued low energy costs and the additional capacity from the expanded Freshfield Lane site in Sussex, which combines new technology with the traditional manufacturing method of 'clamp-firing'.So, even with two months of the financial year still to run, the group said it was likely to exceed the market expectations of profit before taxation for the year, with full year results scheduled for release on 21 March 2016.Analysts suggested the rise in average selling prices for bricks would be an interesting read-across for the housebuilding sector.