2015 was a strong year both financially and operationally for Michelmersh Brick Holdings and it appears that the company’s momentum remains strong in 2016.
The company has been benefiting from a robust UK housing market. The Council of Mortgage Lenders (CML) released figures confirming that the first quarter of 2016 saw homeowners borrow £30.9bn to purchase new homes. This amount represents a year-on-year increase of 33%.
New builds would have accounted for only a small percentage of these loans, but the figures indicate the strength of the current housing market. Housebuilder Taylor Wimpey recently announced that the the new build housing market in the UK remains positive overall.
The housebuilder said that increasing consumer demand and confidence, combined with a strong and controlled lending environment, is enabling access to mortgages at a competitive rate.
The demand for new homes equals demand for bricks, an equation that is benefiting Michelmersh.
The company witnessed a 3% increase in output in 2015 compared to the year before, while there was also a 9% increase in the average selling price. These factors listed turnover to £29.1m, while pre-tax profits came in at £4.6ml, an increase of £2.6m in 2015.