Construction products manufacturer Michelmersh Brick Holdings has forecast a drop in revenue in 2025, as new government statistics underlined the firm’s warning of “a notable slowdown in the construction market”.
The latest monthly data from the Department for Business and Trade (DBT) showed that month-on-month brick deliveries decreased by 4.9 per cent in October and fell 7.1 per cent year on year.
Concrete block deliveries also decreased by 7.1 per cent compared with October 2024, the DBT said today (3 December), which was a faster fall than the 4.3 per cent year-on-year drop it recorded for September.
In a London Stock Exchange trading update yesterday (2 December), West Sussex-headquartered Michelmersh said it expects revenue of about £69m for the 12 months to 31 December. It forecast adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of about £12.5m.
This reflected a slight downward revision from the company’s position when it announced its interim results in September and predicted full-year performance “broadly in line with [the] full-year 2024”.
Michelmersh posted revenue of £70.1m in the 12 months to 31 December 2024, along with adjusted EBITDA of £14m.
The firm said: “While trading and profitability have been ahead of the first half, there has been a notable slowdown in the construction market and activity levels in the final quarter.
“These activity levels have been impacted by a challenging macroeconomic outlook and the uncertainty of UK Budget policy announcements, which have adversely impacted both consumer sentiment and investment decision-making across the sector.”
Michelmersh, which makes bricks, pavers, terracotta products and prefabricated brick components, said it had “continued to see positive order intake levels” and had a “well-balanced forward order book”.
It added: “Our commitment to delivering our broad product range and high levels of customer service means that we are well positioned to continue to trade through the ongoing challenging market conditions.
“Following the substantial capital investment across our facilities in the first half, we are pleased to report that a more normal production operating rhythm has continued through the second half, which is expected to deliver improved profits in the second half of the financial year and as we look beyond into 2026.”
Today’s DBT figures also showed material price volatility in the 12 months to October 2025. The cost of imported sawn or planed timber, for instance, rose by 12.5 per cent in this period, while gravel, sand and clays fell by 3.6 per cent.
Sales of sand and gravel rose by 0.4 per cent in the third quarter (Q3) of 2025 compared with the previous three-month period, the DBT said in its latest data release, although it added that “the general trend has been of a decline” since 2022.
Ready-mixed concrete sales rose by 0.5 per cent in Q3 compared with Q2, when the DBT reported a 4.4 per cent fall versus the previous quarter.
Michelmersh is the latest in a number of construction materials firms to offer cautious trading updates.
Breedon last month reported a drop in organic revenue amid “subdued demand” from builders on both sides of the Atlantic.
The Derbyshire-headquartered firm said its turnover was 3 per cent lower in the first 10 months of 2025 than in the same period last year.
Meanwhile, aggregates supplier GRS Roadstone posted profit before tax of £3m for the year to 31 January 2025, down from £9.2m in the prior period.
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