Boom builds up a brick shortage

BRITAIN'S building bonanza has left the UK facing its lowest brick stocks since the end of the last housing boom at the end of the 1980s.

Baggeridge Brick, Britain's fourth-largest brickmaker, says the booming housebuilding sector coupled with an exceptionally dry autumn which has allowed construction work to continue when it is usually bogged down by mud, has hit stocks.

It reports that housing starts in England in the 12 months to September were up 4%. Sales soared to record levels in the year to £53.1m. Pre-tax profits improved 95% to £6.21m and the total dividend is increased 5% to 5.25p.

Chairman Alexander Ward says the only worry he has is over the price of gas used to fire kilns in its seven factories.

However, the continuing need for new homes, particularly in the South East, was underpinning the market for bricks. Ward said he was confident the group would benefit from current market conditions.