Michelmersh narrows losses

22nd Sep 2009 08:36

Brickmaker Michelmersh slimmed down half year losses as it cut costs and reduced output levels at all of its plant.Loss before taxation was narrowed to £457,000 for the six months to 30 June 2009 from £483,000 the year before. Group turnover was reduced by 28% to £9.1m."Decisive action taken twelve months ago to negate the effects of the worsening economy and this included reducing output levels at all our plants," the group said in a company statement.Administrative costs were reduced in the period to £2.8m from £2.9m as Michelmersh put a freeze on wage and salary increases during 2009. Looking ahead Michelmersh commented, "Our brick business continues to enjoy a key position within the UK market. We believe that the market continues to retain significant excess capacity with many of our competitors carrying higher than normal stock levels in a depressed marketplace which is dominated by three industry players."The group said a return to its progressive dividend policy will be made when market conditions improve.