Michelmersh hit by weak demand and tight brick pricing

The specialist brickmaker mentioned income dipped 1.7% to £69m within the 12 months to 31 December 2025, whereas pre-tax revenue almost halved to £4.3m.

The group blamed the drop on a sluggish UK market, tight pricing throughout the sector and disruption from its personal funding and integration programme.

Michelmersh mentioned UK brick dispatches rose by a low single-digit proportion and that it held market share all year long, however warned that pricing remained beneath strain as business manufacturing volumes outpaced deliveries.

That imbalance left the market extremely aggressive, with producers chasing work towards a backdrop of patchy buyer confidence and unsure challenge begin dates.

The underside line was additionally impacted by distinctive costs linked to the closure of its Watlington website, the shutdown of the Hathern Terra Cotta model and wider restructuring.

The group mentioned the broader UK market by no means developed the momentum wanted for a sustained restoration. It pointed to weak client confidence, affordability pressures and sluggish planning exercise, notably in London and the South East, as key drags on demand.

Bosses mentioned order consumption stayed forward of producing capability going into 2026, however the reliability of call-offs had weakened over the past 12 months as prospects grew to become much less sure on programme timings.

Michelmersh additionally mentioned sector brick dispatches stay round 20% beneath their 2022 peak, whereas manufacturing capability has crept up in anticipation of a restoration that has but to totally land.

Capital expenditure totalled £5.6m, with main works at Carlton, Michelmersh and Floren because the group pressed forward with kiln upgrades, environmental enhancements and the combination of prefabricated operations onto its personal freehold websites.

Chair Tony Morris mentioned: “Broader UK brick despatches began 2025 with a constructive year-on-year trajectory, however this creating momentum was undermined by the uncertainty concerning potential UK finances coverage bulletins within the second half, highlighting the cautious sentiment that is still in our sector.”

He added that the group remained watchful over the tempo of any market restoration however believed the enterprise was properly positioned to make progress in 2026.

Michelmersh additionally revealed that CFO Rachel Warren is stepping down with rapid impact for private causes and can depart the enterprise in Might.