Michelmersh reports positive order momentum

16th May 2024 16:49

(Sharecast News) - Specialist brickmaker Michelmersh reported continued positive order intake momentum in an update on Thursday, aligning with market expectations.

The AIM-traded firm was holding its annual general meeting, with chair designate Tony Morris updating shareholders.

"Since reporting our full-year 2023 results in March, we have continued to experience positive momentum in our order intake, reflecting the benefits of our product portfolio's broad reach and the strong customer loyalty and distributor relationships we have across our end markets," Morris said.

He acknowledged the impact of the higher interest rate environment on demand within the wider construction industry, and emphasised the company's focus on maintaining appropriate portfolio pricing to ensure diversity in its forward order book, which includes social and specification housing, repair and maintenance (RMI), new build, and commercial sectors.

Despite challenging seasonal conditions affecting delivery schedules in the first quarter, production volumes remained in line with expectations.

The firm said the recent momentum in order intake, reaching levels not seen since the end of 2022, was expected to drive increased despatch volumes for the remainder of the financial year.

That, combined with the company's strong balance sheet, positioned Michelmersh well to meet its full-year expectations.

At 1621 BST, shares in Michelmersh Brick Holdings were up 2.67% at 103.7p.

Reporting by Josh White for Sharecast.com.