Following the UK government’s measures to stay at home, building product manufacturers Michelmersh and Forterra have suspended all deliveries and production
In an update in relation to COVID-19, Michelmersh has suspended all brick deliveries during the government three-week review period.
The manufacturer said it would constantly review the situation.
The group’s brick manufacturing plants will be able to quickly return to normal levels of production once restrictions are lifted.
In its statement, Michelmersh revealed that whilst there is much uncertainty, it was in a strong financial position with substantial cash and good covenant headroom.
As such, the board believes it is well protected to see out a period stretching beyond what the UK government is currently indicating for the COVID-19 pandemic.
The board has deferred any dividend payments until it is confident that normal business has resumed across its sector.
Martin Warner, chairman of Michelmersh Brick Holdings, said: “These are unprecedented times and the safety of our people is paramount.
“We would like to reassure our customers and stakeholders that we are continuously monitoring the situation.
“These restrictions are under constant review and we will be sure to re-open our production as soon as it is safe to do so and resume our service as Britain’s Brick Specialists.”
Forterra production break
Building products manufacturer, Forterra, has also announced temporary production breaks at many of its factories starting from the end of this month and including the bank holiday periods.
In a statement, chief executive, Stephen Harrison, said: “This decision has not been taken lightly, however in light of the current economic uncertainty it is felt to be the best available option today.
“We are coming out of the winter months with high levels of inventory which is more than sufficient to cover these production breaks so I am confident your orders can be fulfilled with a high level of service.
“The reason for these production breaks is to avoid further inventory build which would have a very negative impact on our cash position.
“Looking forward, I need to be sure that we have sufficient cash to continue to pay our employees and suppliers so reducing the risk of excess inventory build is essential.”
He concluded: “May I take this opportunity to thank you for your business and support.
“We will continue to communicate with you as the situation changes but please do not hesitate to get in touch should you require any further information.”
