Construction products manufacturer Michelmersh Brick Holdings has warned of weaker trading in 2025, with fresh government statistics pointing to a cooling construction market. The company now expects revenue of about £69m for the year to 31 December 2025 and adjusted EBITDA of around £12.5m, trimming guidance it issued with its interim results in September.
The revised outlook follows new Department for Business and Trade (DBT) data showing a sharp drop in brick and block deliveries. Brick deliveries fell 4.9 per cent between September and October 2025 and were down 7.1 per cent year on year, while concrete block deliveries in October were 7.1 per cent lower than a year earlier, a steeper decline than the 4.3 per cent annual fall recorded in September.
Michelmersh, headquartered in West Sussex, reported revenue of £70.1m and adjusted EBITDA of £14m for the 12 months to 31 December 2024. In its latest trading update, the firm said trading and profitability in the second half of 2025 were ahead of the first half, but highlighted “a notable slowdown in the construction market and activity levels in the final quarter”.
The company said activity had been hit by a “challenging macroeconomic outlook” and uncertainty around UK Budget policy, which it said had weighed on consumer confidence and investment decisions across the sector. Despite this, Michelmersh – which manufactures bricks, pavers, terracotta products and prefabricated brick components – reported “continued… positive order intake levels” and a “well-balanced forward order book”.
Michelmersh added that its broad product range and focus on customer service left it “well positioned” to trade through difficult market conditions. It said substantial capital investment in its facilities during the first half of 2025 had helped restore a more normal production rhythm in the second half, which is expected to support improved profits both for the remainder of the financial year and into 2026.
The DBT figures also highlighted ongoing volatility in construction material prices in the 12 months to October 2025. Imported sawn or planed timber rose 12.5 per cent over the period, while prices for gravel, sand and clays fell by 3.6 per cent.
Sales volumes for key heavy materials showed a mixed picture. Sand and gravel sales edged up 0.4 per cent in the third quarter of 2025 compared with the previous quarter, although the DBT noted that the broader trend has been downward since 2022. Ready-mixed concrete sales rose 0.5 per cent in Q3, following a 4.4 per cent quarter-on-quarter fall in Q2.
Michelmersh’s cautious tone mirrors updates from other major materials suppliers. Breedon recently reported a 3 per cent fall in organic revenue in the first 10 months of 2025, citing “subdued demand” from builders in both the UK and North America.
Aggregates supplier GRS Roadstone has also felt the impact of weaker markets. It posted profit before tax of £3m for the year to 31 January 2025, down from £9.2m in the previous period, underlining the pressure facing construction materials producers as workloads soften.
