Sharp upturn for Michelmersh Brick  

Michelmersh Brick has restarted production following lockdown despatches have recovered more quickly than for the industry as a whole. Interim revenues fell by 17% and underlying pre-tax profit was halved, but full year expectations have been upgraded. 

 

The bricks manufacturer is operating at normal levels and June 2020 revenues were better than those in June 2019. Canaccord Genuity has upgraded its full year profit forecast from £5.3m to £6.5m, down from £9.7m in 2019. 

Limited UK brick production capacity means that Michelmersh is in a strong position and it has demonstrated its resilience this year. 

CURRENT EDITION
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Major takeover deal for RWS

Patent translation services provider RWS Holdings is acquiring fully listed translation software company SDL in order to create the world’s leading language services provider. Management expects annual cost savings of £15m and the merger should be earnings enhancing in the next financial year. RWS intends to retain its AIM quotation.

SDL shareholders will receive 1.2246 RWS shares for each SDL share they own, valuing the company at £854m. They will have a 29.5% stake in the enlarged group. Acceptances have been received that are equivalent to 38.2% of SDL. At a RWS share price of 741p, each SDL share is valued at 907p.

Frontier guidance increased 

Video games developer Frontier Developments is due to report 2019-20 figures on 9 September and it has already increased guidance for 2020-21.

In the year to May 2020, pre-tax profit is set to decline from £19.7m to £15.3m, because of the strong performance of Jurassic World Evolution in the previous year. The profit is still more than double the 2017-18 level and much higher than was forecast one year ago. This year Planet Coaster will be launched on consoles and there will be the first two games from third-party publishing. Revenues will be at the top of the current range of £83m to £95m.

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