23 May 2017 – agm trading update
The company has released a trading update for the four months ended 30 April 2017 to coincide with its Annual General Meeting. Trading in the period was good, building on the momentum seen towards the end of 2016. Revenue for the four months was 6% ahead of the prior year. The project to replace dryers at the Claughton brick facility in Lancashire is said to be well advanced and on schedule to enable the kiln to be re-lit during the summer. Once completed this project will increase production efficiency and add capacity of 5 million bricks per annum. The project to increase the gas supply at the Desford brick facility in Leicestershire is also said to be progressing well with the installation of new kiln burners due to be carried out later in the year. Net debt at the end of April was around £89m versus £92.3m at the start of the year. Another year of progress is expected in 2017 and expectations for the full year are unchanged. Results for the six months to 30 June 2017 will be announced on 1 August 2017. The shares have moved up since our tip and are now at a historic high so we would only BUY ON WEAKNESS.