The last sentence is about the ROE chart (see ). |
What do you mean by "This would look even better if they didn’t hold significant cash balances in the latter years." Surely the cash is a further benefit? |
 From Small Caps Live:
Billington Holdings (BILN.L)
Billington has had a great year, with three forecast upgrades:
However, the price is just up 12% during the year. The numbers didn’t match the 2023 ones, which were always flagged as exceptional due to inflation moderating during the year with already-priced contracts. So, this may mean that some investors dismiss this, as does the cyclicality. However, it is worth asking where we are in the cycle, and it seems to Mark that we are much closer to the bottom than the top. So if the company can perform this well in challenging markets, how well will they do in better ones?
The answer is perhaps given by the fact that they are investing in automation to make their business both more efficient and add significant capacity. Their long-term record is excellent, and apart from during COVID when construction was held back, they have a strong ROE:
fdbb7fb0-5a6b-42d5-b059-d14304df3758.png
This would look even better if they didn’t hold significant cash balances in the latter years. |
Bought in yesterday. |
Stock pickers always trying to buy from the uninformed? |
This is what you call a delayed reaction. Analysts upgraded intra day so not sure why it moves so much today |
Cavendish-
YE update – Trading ahead of expectations: EPS +16.2% The group has posted an upbeat year-end trading update, which highlights that the positive momentum seen in the first half has continued through the second half, resulting in FY24 PBT ahead of current market expectations. It has a strong order book spanning into 2026, many of which are more complex projects in energy from waste, data centres and high-tech manufacturing. While markets remain tough, it is encouraging to see BILN trading robustly, and – in contrast to some of its peers – enhancing its capabilities through efficiency-enhancing capex. We raise our FY24E EPS forecast 16.2% to 66.2p, keeping our existing FY25E forecasts. Our TP remains 610p, offering significant upside to the current attractive FY25E P/E of 7.6x while also offering a premium 5.0% dividend yield. |
At this year’s Master Investor Show in March, I featured two of my favourite stocks – Billington Holdings @ 390p, and SRT Marine Systems @ 30p – look at them now.
Mark Watson-Mitchell
Dec 16
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Billington Holdings – this group continues to demonstrate strong forward momentum and outperformance, while growing its market share, looking for 610p against current 465p
I just love to see a company announcing that its current year results ‘will be better than market expectations’ – the response just helps to set share prices alight.
And that is what investors like to see, too - a bit of action in their portfolios, helping to wake them up and shake them out of the current market lethargy.
Just such a case has been the massive turnaround in activity in the shares of one of my old favourites – Billington Holdings (LON:BILN).
The Business
The group is one of the UK's leading structural steel and construction safety solutions specialists, focused on structural steel and engineering activities throughout the UK and European markets.
Based in Barnsley, the group was set up in 1989 and was previously known as the Amco Corporation.
It changed its name to Billington Holdings in 2008.
Employing nearly 460 people through its various subsidiaries, the group designs, manufactures, and installs structural steel works in the UK, Europe, and internationally.
The company also designs, fabricates, and installs bespoke steel staircases, balustrade systems, and secondary steelwork...
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I don't really see why these aren't around the £86m / £7 mark - ????
At the same time, it's never been there before - so I must be missing something beyond its cyclical nature. |
Billington shares were over £5.5 in the spring with the profit upgrade by 16.5% they should be 15% higher which is £6.3 |
Over 10% of my portfolio now, really shouldn't buy any more, but... |
Thanks for posting Dave. That is some 2024Fy upgrade 57p to 64p. So cash adjusted 4.5x, i agree with the price target and have this as a long term buy and hold. This is in the context of challenging markets, Imagine when end markets improve. |
Cavendish. The group has posted an upbeat year-end trading update, which highlights that the positive momentum seen in the first half has continued through the second half, resulting in FY24 PBT ahead of current market expectations. It has a strong order book spanning into 2026, many of which are more complex projects in energy from waste, data centres and high-tech manufacturing. While markets remain tough, it is encouraging to see BILN trading robustly, and in contrast to some of its peers enhancing its capabilities through efficiency-enhancing capex. We raise our FY24E EPS forecast 16.2% to 66.2p, keeping our existing FY25E forecasts. Our TP remains 610p, offering significant upside to the current attractive FY25E P/E of 7.6x while also offering a premium 5.0% dividend yield. |
They are exceeding 57p eps with 146p of net cash so pre coffee i reckon we are valued at cash adjusted 5x current year. Silly and mispriced |
Looks like a good bounce in |
Or adjusted EBITA. :) |
Tough crowd Chester9 lol. At least they use PBT and not EBITDA |
They were not exactly abundant with facts though. Was H1 revenue a success, or more reflecting better than expected in tough conditions. On my watch list. Should see a bump up today but needed figures. |
Phew. Priced for a warning and we get an earnings beat. |
Possibly but the derating in Sevr today was mainly due to the potential remediation liabilities due to poor non compliant work. |
Current trading at Severfield may mean that Billington is finding trading more difficult than their latest announcement suggested. |
Severfield reporting next week. share price still might get to net assets of £3.9 but with about 30p already in for this year they are at net asset value already. Will be buying if they get to £3.9 |
I'm not expecting one, but from the interim results:
"The Group continues to benefit from significant projects in energy from waste, high-tech manufacturing, infrastructure and data centre facilities, achieving a record order book at 30 June 2024. In addition, some of the other markets in which Billington operates such as large office developments, industrial warehousing development, film studio and leisure facility construction are seeing projects restarted and are providing a growing pipeline of opportunities. These growth areas are expected to more than offset any impact on the Group from any deferment of government expenditure and the slight softening of the structural steel market this year....
...I am very pleased with the performance across the Group in the first half of 2024 and I believe that Billington has continued to be seen as the steelwork contractor of choice. The Group's investment in efficiency improvements, the latest capital equipment and skilled people, coupled with the Group's strong market position and increased offering, is enabling the Group to grow market share, achieve attractive margins and to focus on those sectors that can deliver better returns.
Despite some softening in the market this year compared to 2023, the large contracts secured in the first half of the year and a strong pipeline of opportunities provides confidence for the 2024 full year and into 2025, with FY24 profits now expected to be ahead of current market expectations." |
This time last year there was a trading update. Anyone know if there's one likely this year? |
National Insurance going up, but this will affect all suppliers |
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