黑洞社区

Brick maker Michelmersh said it expects to weather the effects of the coronavirus epidemic, days after announcing it was suspending production and deliveries for three weeks.

The firm said it had responded to the government鈥檚 lockdown by stress-testing the likely impacts of a hit on cashflows and having talks with its bank, HSBC, which had waived its covenant.

None of the group鈥檚 370 staff were currently on the government-backed salary furlough scheme and job losses were not anticipated, according to joint chief executive Frank Hanna.

鈥淲e want staff to be motivated and ready to start work again at the drop of a hat,鈥� Hanna told 黑洞社区.

Hanna said the firm, which makes 120 million bricks a year, was confident it could make up any shortfall in business with flexible working and overtime.

鈥淲e鈥檝e run various scenarios and our worst case is that the halt to production goes on for longer than the current three week-shutdown.

鈥淏ut we鈥檝e enough cash to keep the business going and we鈥檒l be in a position to re-start operations as soon as possible,鈥� he said.

The firm expects to lose around seven million bricks鈥� worth of production, roughly 6%, during the enforced closure.

Hanna said the business had seen a good start to 2020 and was hoping to return to normal operations after the three-week shutdown but it would do so only in line with government advice and keeping its staff and customers safe.

Announcing record annual results for the year to 31 December 2019, Michelmersh saw operating profit rise 56% to 拢11.1m on turnover of 拢56m, up 15%. Pre-tax profit came in at 拢10.4m, up 63%. The firm added that it was suspending its final dividend payment to shareholders.