Billington Share Discussion Threads

[gleach23] 21/3/2017 20:21

Great post GHF - thanks

Whilst sharing your advice, tell 'em you're a big fella TBF :)

[glasshalfull] 21/3/2017 20:04

BILN

Like most other investors, I was impressed with today's results....op margin improved to 6% (from 5.4%); earnings 7% ahead of the upgraded forecast; net cash +£1.5m ahead of forecast & the dividend +66%. All wrapped up nicely with a positive outlook & pleasingly with order visibility into Q1 2018.

So, I was also astonished that John Gordon felt the need to dribble out some shares today (@ 225p) and kill any share price momentum stone dead. Don't often observe stupidity from Directors like this on results day & I'm unable to recall a similar instance in recent times.

The shares opened at 260p & I felt they warranted pushing on to the £3 level over the coming weeks & months, especially after investors considered the valuation in comparison to peer SFR and (perhaps) concluded the 40% PER discount unwarranted.

The only consolation with Gordon's 40k sale is that it provided the opportunity for a top-up at a decent price towards close of play. Grrrr, thanks for that John!!!

Back to the results.

WH Ireland released an update reiterating their Buy recommendation & 340p price target. They commented,

"...2016 proved to be another exceptional year, against a backdrop of increased confidence in the sector and increased order visibility. Full year earnings were 6.7% ahead of our estimates, adjusted EPS increasing 20% y-o-y to 25.4p and the proposed final dividend increased materially by +66% to 10.0p."

&

"...With Billington reporting significant forward visibility, we upgrade our FY 2017E EPS estimate by 9%. We see fair value at 340p and view the current 40% PER discount to Severfield as unjustified."

BILN beat WH Ireland's upgraded forecasts across the board: -

2016

Turnover £63.3m (vs £60.8m estimate)
Adj PBT £3.8m (vs £3.5m estimate)
Adj EPS 25.4p (vs 23.8p EPS estimate)
Dividend 10p (vs 6p estimate)
Net cash £3.5m (vs £2.0m estimate)

They have also upgraded the current year forecasts across the board: -

2017 est

Turnover £65.5m (up from £62.7m)
Adj PBT £3.9m (up from £3.6m)
Adj EPS 26.2p (up from 24.1p EPS)
Dividend 10.1p (up from 6.6p)
Net cash £4.3m (up from £2.5m)

That leaves BILN on a prospective PER of 8.8 for the current year & now offering a dividend yield of 4.4%

A month ago I posted that BILN was (-14%) since Sept 2016 while SFR was (+43%) in the same timeframe.

Quick check tonight reveals that over a year BILN are (-25%) while SFR are (+45%).

Someone keep John Gordon away from his broker....

Kind regards,
GHF

[meijiman] 21/3/2017 16:20

Useless. Eye off the ball i fear.

[the big fella] 21/3/2017 16:19

Rhomboid - I have been involved in many small caps where the broker, or the company themselves have placed share overhangs into safe hands. There has to be a desire from the company to actually want to increase shareholder value. I shall be making a few calls and giving them some friendly advice. I hope that my first day invested is the low point (in more ways than one)!

[sherylchan] 21/3/2017 16:15

Company broker & nominated advisor - WH Ireland

[rhomboid] 21/3/2017 16:12

If he wants out they need to get their brokers busy rustling up an institutional buyer, given how well they're trading and the yield on offer that should be a breeze. Not getting a sense that they're broker is functional here in any way

[steelwatch100] 21/3/2017 16:09

If Gordon has 307,000 remaining & just wants to give them away @ 2.25 or less for a quick sale, then the share price is going nowhere quick until he has finished.

He was a senior director back in the 90's so I would have thought his age may be driving the need for the sale?

[sherylchan] 21/3/2017 16:09

BB2 - there is no other way he can sell it - shares are hideously illiquid normally as u know- only way is to sell it via agreed sale to another buyer via company broker for remaining lump

[sspurt] 21/3/2017 16:05

PJ1 - underlines gulf in quality with SFR I am afraid

[steelwatch100] 21/3/2017 15:56

Correct should read Director Gordon. Ex Chairman. Part of the past not future.

Also miffed. Statement still needed.

[battlebus2] 21/3/2017 15:52

Maybe he thought it was better to sell into strength on results day..

[rhomboid] 21/3/2017 15:50

Steelwatch, Hems only had 15000 shares, its Gordon selling a slug today from his 357k ?
Also the EBT was no longer under the control of the directors as it represented pension scheme of long since disposed subsid & the trustees had no option but to sell to meet requirements iirc

Still miffed tho. timing stinks

[steelwatch100] 21/3/2017 15:42

Chairman Hems has still got 307,000 shares & is prepared to give them away @ 2.25 (or lower) with this hanging over the market & no indication of intentions, then I feel the share price will remain at this level or lower for the foreseeable...

We need a statement.

[the big fella] 21/3/2017 15:35

I just wish I had waited a couple of hours and saved myself 5 grand!

[battlebus2] 21/3/2017 15:32

That's always a possibility PJ!!!

At the end of the day it should have no bearing on the shares given today's results so time to add on any further weakness it causes.

[steelwatch100] 21/3/2017 15:32

The Chairman Peter Hems is part of the old team (with too many shares). No communication skills, no market skills. His control of the recent ebt sale and his own disposal seem "trump like" in standard.
If he wants out, then the sooner the better so the new ceo's drive to move the company forward, can continue in a supported manner. If he wants to stay then he surely needs to up his game.

[pj 1] 21/3/2017 15:22

Maybe they don't want shareholders? :-//

[the big fella] 21/3/2017 15:20

Yes slightly miffed to say the least

[battlebus2] 21/3/2017 15:14

Incredible what's happening here, the sceptical side of me says the don't want a higher share price!!

[the big fella] 21/3/2017 15:10

I wish I had waited now!

[darlocst] 21/3/2017 14:55

Correction RNS - wrong date, was March 21st.

[pj 1] 21/3/2017 14:28

RNS, Director sell from January, p*ss take?

Directors/PDMR Dealings

Billington confirm that on 21 January 2017, John Gordon, a director of the Company sold 40,000 shares at a price of GBP2.25p each per share.

[the big fella] 21/3/2017 12:43

I have had these on the watchlist for some time. Never managed to take the plunge..... until now that is. Picked up 25k at 2.40.