Michelmersh Brick Holdings PLC Sale of landfill site and pre-close statement (1914U)

TIDMMBH

RNS Number : 1914U

Michelmersh Brick Holdings PLC

16 January 2017

16 January 2017

Michelmersh Brick Holdings Plc

("MBH" or the "Group")

SALE OF LANDFILL SITE AND PRECLOSE STATEMENT

Michelmersh Brick Holdings PLC (AIM: MBH), the specialist brick, land development and landfill company, is pleased to announce that it has exchanged contracts for the sale of the 25 acre former Dunton Brothers brickworks at Chesham in Buckinghamshire, for a total consideration of GBP2.68 million in cash, to London Green Resources Limited. Subject to the procedures of the Environment Agency completion will take place within 10 days of transfer of the Landfill Permit, which given current guidelines, is likely to be towards the end of H1 2017. The consideration is payable in full on completion and the net proceeds will be added to the Group's cash reserves.

The Group's audited accounts for the year ended 31 December 2015 included this plot of land in fixed assets as a landfill asset at a value of GBP1.25 million and, after costs, the expected surplus on sale will exceed GBP1 million. The asset will be disclosed in the accounts to 31 December 2016 as a current asset for resale at the expected net realisable value. The uplift in value, from the 2015 value to net realisable value, will be credited to revaluation reserves in the Group's financial statements for the year ended 31 December 2016.

The Board expects to release the preliminary announcement of the results for the year to 31 December 2016 on 20 March 2017. In October 2016, the Group announced that it expected its financial performance for 2016 to be at or around a similar level to that reported for the full year 2015 and the Board confirms that expectation. Cash generation was particularly pleasing with year-end cash balances exceeding forecast.

This statement contains inside information

 
  Enquiries: Michelmersh Brick Holdings 
     Frank Hanna, Joint CEO 
     Stephen Morgan, Finance Director    01825 430 413 
    Cenkos Securities plc 
     Bobbie Hilliam (NOMAD) 
     Harry Pardoe 
     Alex Aylen (Sales)                  020 7397 8900 
    Yellow Jersey PR 
     Charles Goodwin                     07747 788 221 
     Dominic Barretto                     07768 537 739 
 

About Michelmersh Brick Holdings PLC:

Michelmersh Brick Holdings PLC is a business with five market leading brands: Blockleys, Charnwood, Freshfield Lane, Michelmersh and Hathern Terra Cotta. These divisions operate within a fully integrated business combining the manufacture of clay bricks, tiles and pavers. The Group also includes a landfill operator, New Acres Limited, and seeks to develop future landfill and development opportunities on ancillary land assets.

Established in 1997 the Company has grown through acquisition and organic growth into a profitable and asset rich business, producing approximately 72 million clay bricks, tiles and pavers per annum. Michelmersh currently owns most of the UK's premium manufacturing brands and is a leading specification brick and clay paving manufacturer.

Michelmersh strives to be a well invested, long term, sustainable, environmentally responsible business. Opportunity, training and security for all employees, whilst meeting the needs of stakeholders are at the forefront of everything we do. We aim to lead the way in producing some of Britain's premium clay products and enhancing our built environment by adding value to the architectural landscape for generations to come.

We are Michelmersh Brick Holdings PLC: we are "Britain's Brick Specialist".

Please visit the Group's websites at: www.mbhplc.co.uk and www.bimbricks.com

This information is provided by RNS

The company news service from the London Stock Exchange

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January 16, 2017 02:00 ET (07:00 GMT)