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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Billington Holdings Plc | LSE:BILN | London | Ordinary Share | GB0000332667 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -15.00 | -3.03% | 480.00 | 470.00 | 490.00 | 495.00 | 477.50 | 495.00 | 54,521 | 16:20:04 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Heavy Construction, Nec | 86.61M | 4.73M | 0.3660 | 13.11 | 62.08M |
From Apr 2019 to Apr 2024
TIDMBILN
RNS Number : 6391Z
Billington Holdings PLC
22 September 2020
22 September 2020
Billington Holdings Plc
("Billington", the "Group" or the "Company")
Interim Results
Billington Holdings Plc (AIM: BILN), one of the UK's leading structural steel and construction safety solutions specialists, is pleased to announce its unaudited interim results for the six months ended 30 June 2020.
Hot Features
Premium
Unaudited six Unaudited Percentage
months to 30 six months Movement
June 2020 to 30 June
2019
Revenue GBP32.78m GBP47.15m (30.5%)
-------------- ------------ -----------
EBITDA GBP1.59m GBP3.55m (55.2%)
-------------- ------------ -----------
Profit before tax GBP0.61m GBP2.68m (77.2%)
-------------- ------------ -----------
Cash and cash equivalents GBP17.48m GBP10.01m 74.6%
-------------- ------------ -----------
Earnings per share (EPS) 4.1p 17.8p (77.0%)
-------------- ------------ -----------
Highlights
-- Revenue decreased 30.5 per cent to GBP32.78 million (H1 2019:
GBP47.15 million) as the Covid-19 pandemic resulted in delayed
and cancelled projects
-- Profit before tax decreased 77.2 per cent to GBP0.61 million
(H1 2019: GBP2.68 million)
-- Cash and cash equivalents increased by 74.6 per cent to GBP17.48
million at 30 June 2020 (30 June 2019: GBP10.01 million). The
average cash balance during the period was GBP14.68 million
(H1 2019: GBP8.51 million)
-- The Group has seen improved trading conditions towards the
end of the period and post period end, although margin pressure
remains across the industry
-- Recently secured contracts combined with a strong pipeline
of opportunities provides a solid foundation on which to build
on for 2021
Mark Smith, Chief Executive Officer of Billington, commented:
"Following an exceptional 2019, the first half of the year has been dominated by the impact of the Covid-19 pandemic on the construction sector and the consequential restrictions on site access, project delays and cancellations. We have seen a significant impact on our first half revenue, however with all Group operations having now returned to near full capacity and with the majority of projects having restarted, we look forward to the remainder of the year with cautious optimism. We anticipate improved Group financial performance in the second half of the year, before hopefully moving to more normal trading conditions in 2021 assuming the economy stabilises and commences its recovery from the pandemic."
For further information please contact:
Billington Holdings Plc Tel: 01226 340 666 Mark Smith, Chief Executive Officer Trevor Taylor, Chief Financial Officer WH Ireland Limited Tel: 0207 220 1666 Chris Hardie James Sinclair-Ford Jasper Berry IFC Advisory Limited Tel: 0203 934 6630 Tim Metcalfe Graham Herring Zach Cohen
Chief Executive Statement
Introduction
Following a record performance in 2019, the first half of 2020 was dominated by the impact of the Covid-19 pandemic. Whilst all the Group companies have been operational and have traded during the period, all have experienced varying levels of delays, postponements and associated pricing pressures.
Many projects have been subject to delays and restrictions to site access, resulting in revenue decreasing by 30.5 per cent to GBP32.78 million for the period. The reduction in revenue is as a result of two significant projects being completed in the prior period along with the impact of contract delays.
Anticipated output for H2 indicates that all facilities will operate at near full capacity and with only a minor need to subcontract excess production requirements. The corresponding period in 2019 experienced large production overloads that were managed through the longstanding, approved Group supply chain.
Whereas margin pressure remains evident across the industry, we anticipate an improved performance in the second half whilst mindful of the continuing disruption caused by the Covid-19 pandemic and consequential ongoing project delays.
Group Companies
Billington Structures and Shafton Steel Services
Billington Structures is one of the UK's leading structural steelwork contractors with a highly experienced workforce capable of delivering projects from simple building frames to complex structures in excess of 12,000 tonnes. With facilities in Barnsley and Bristol and a heritage dating back over 70 years, the business is well recognised and respected in the industry with the capacity of processing over 40,000 tonnes of steel per annum.
The Shafton facility operates in two distinct business areas. The first undertakes activities for Billington Structures. The second, Shafton Steel Services offers a complete range of steel profiling services to a large number of diverse external engineering and construction companies, providing further opportunities to increase the capacity of the business as well as allowing for the supply of value added, complementary products and services to enhance the comprehensive offering of the Group. Opportunities related to HS2 and the wider infrastructure market are currently being tendered and have been delivered for a range of current and new customers with further opportunities anticipated in this market.
During the first half of the year the business has faced challenges as a result of Covid-19. A number of projects were cancelled or delayed and even though the business remained open throughout the period, it suffered from a lack of productivity, particularly in April and May.
Now operating at near full capacity, Billington Structures has a stable order book for the remainder of the year and into 2021. Whilst the detailed timing of certain projects remains uncertain, the focus will be on both the successful completion of existing contracts and the securing of new business for 2021 and beyond.
Peter Marshall Steel Stairs
Based in Leeds, Peter Marshall Steel Stairs is a specialist designer, fabricator and installer of bespoke steel staircases, balustrade systems and secondary steelwork. It has the capability to deliver stair structures for the largest construction projects and operates in sectors spanning retail, commercial offices, education, healthcare, rail and many more.
During the first half Peter Marshall Steel Stairs benefited from supplying to projects involving both Billington Structures and other large projects from the wider engineering and construction market. The business continues to have a good order book and enjoys a robust market position, particularly when viewed against its smaller competitors, in what is a fragmented market.
easi-edge
easi-edge is a leading site safety solutions provider of perimeter edge protection and fall prevention systems for hire within the construction industry. Health and safety is at the core of the business which operates in a legislation driven market.
In the first half the business was impacted by Covid-19 related delays to the start of projects, although an improving picture was seen towards the end of the period and post period end. easi-edge continues to benefit from a strong order book and whilst certain projects have been delayed, the investments made in the business in 2019, adding to the stock available for hire, mean it is well positioned as the market recovers in one of the higher margin segments for the Group.
hoard-it
hoard-it produces a unique range of re-usable temporary hoarding solutions which are environmentally sustainable and available on both a hire and sale basis tailored to the requirements of its customers.
Covid-19 related restrictions on site access and the start of new projects constrained the business in the first half. However, significant progress continues to be made to establish the product as the number one choice for main contractors and developers in the construction industry. There remains a particular focus on growing the business in the residential construction market, where hoard-it's range of printed boards and panels are proving attractive to developers looking for a professional and promotional site image. The Board anticipates increased demand in the second half as the market continues to recover.
Financial Results
Revenue and Profit Before Tax
Group revenue decreased by 30.5 per cent over the period to GBP32.78 million (H1 2019: GBP47.15 million). This decrease has been primarily as a result of the impact of the Covid-19 pandemic and the consequential restrictions on site access delaying projects and the postponement of orders. 2019 included the delivery of two large contracts whereas to date in 2020 the portfolio of projects has been of a more typical nature and size.
Despite the reduction in turnover, the Group remained profitable and profit before tax for the period was GBP0.61 million (H1 2019: GBP2.68 million), a decrease of 77.2 per cent.
Earnings per Share
Earnings per share for continued operations for the first half of the year decreased by 77.0 per cent to 4.1 pence (H1 2019: 17.8 pence).
Liquidity and Capital Resources
The Group's gross cash and cash equivalents as at 30 June 2019 was GBP17.48 million, broadly similar to the balance as at 31 December 2019 of GBP17.86 million. The cash balance at 30 June 2020 reflected good cash collection and included approximately GBP1.00 million of deferred VAT and certain modest customer pre-payments.
Capital expenditure
During the first half capital expenditure has been restricted to essential repairs and renewals, with larger long-term capital equipment replacement programmes placed on hold until improved visibility in the wider economy is noted. A number of key items of machinery have been identified for replacement and process expansion over the medium term and therefore an increase in the current level of capital expenditure is expected when it is prudent to do so. However, appropriate investment has been made in the Group's capital assets during the period to ensure reliable production and the maintenance of quality.
Dividend
In the first half of 2019 Billington declared a final dividend of 13.0 pence per share amounting to GBP1,565,000. No final dividend was declared in the first half of 2020 as the dividend was suspended to preserve the Company's cash resources. No interim dividend for 2020 has been declared (2019: nil) a policy consistent with prior years.
Corporate Social Responsibility
During this unprecedented period the focus has been on the welfare and protection of our dedicated workforce. The Company has been committed to ensuring that appropriate measures have been implemented at all of our facilities in a timely manner and in adherence to UK Government guidance. A new office facility has been renovated and brought into operation as employees have returned to office working to ensure that social distancing can be maintained.
Contract disruption and the need to ensure social distancing of employees has necessitated the use of the UK Government's Job Retention Scheme ("JRS"). At the peak of the pandemic 46 per cent of the workforce were placed on furlough leave. It is pleasing to note that at the time of writing only 2% of employees remain on furlough leave with the majority of those previously on furlough having now returned to work.
Market and Economic Outlook
Whilst the General Election in December 2019 and the UK's departure from the European Union at the end of January 2020 has reduced some market uncertainty, the current environment is dominated by the Covid-19 pandemic. As the UK negotiates its position with the EU in relation to Brexit during the remainder of the transition period, we remain alert to the possible effect this may have within the industry.
The markets in which Billington operates remain constrained, with many of the main construction contractors under significant pressure. However, the Group continues to focus on projects with the more robust larger contractors and we continue to assess the risks associated with individual projects on a case by case basis. To date we have been able to secure acceptable levels of credit insurance on our significant projects. Additionally, as the Group has remained materially operational, we do not currently foresee any contractual issues as a result of Covid-19.
Plans have been made, as far as possible to ensure business continuity whatever the nature of the UK's future trading relationship with the EU. These plans include the utilisation of continental European based hauliers and firms with access to smaller ports and their own shipping. Additionally, the Group is ensuring products are dual certified, with both an EU derived CE mark as well as one from the UK. The Company is able to use European metric steel sizes for EU based projects, which are now being manufactured in the UK.
Following the completion of the takeover of British Steel by Jingye in March 2020 we have seen improved supply and some stability return to the UK steel supply market. However, the Group is conscious of the continued upward price pressure of the raw materials for steel production and aims to mitigate the risk associated with price escalation using a number of mechanisms.
Prospects and Outlook
The Group has faced a challenging first half of the year and whilst the overall market continues to be uncertain in the light of Covid-19, the outlook for Billington is encouraging.
We remain in a financially robust position and well placed for the future. The 2021 order book continues to grow, comprising of both delayed and new projects. There are a number of larger projects in prospect and the number and quality of enquires is at near historic levels. We are seeing opportunities in all sectors, particularly large retail distribution warehouses, data centres, food processing developments, public sector works and rail infrastructure. It is encouraging that the more robust developers are also continuing with commercial office development projects where significant pre-lets can be secured.
In closing, I would like to thank Billington's Board, employees, shareholders and stakeholders for their continued support during these difficult times, and I look forward with cautious optimism to the second half of the year.
Mark Smith
Chief Executive
21 September 2020
Condensed consolidated interim income statement
Six months ended 30 June 2020
Unaudited Unaudited Audited
Six months Six months Twelve months
to 30 June to 30 June to 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue, excluding movements in work in progress 33,888 48,352 108,357
Decrease in work in progress (1,110) (1,204) (3,446)
Revenue 32,778 47,148 104,911
=========== =========== ===============
Raw material and consumables 20,524 31,855 73,995
Other external charges 1,719 1,906 3,621
Staff costs 7,605 8,304 16,700
Depreciation 979 862 1,814
Other operating charges 1,341 1,536 2,845
---------------
32,168 44,463 98,975
----------- ----------- ---------------
Group operating profit 610 2,685 5,936
Share of post tax profit in joint ventures - - -
----------- ----------- ---------------
Total operating profit 610 2,685 5,936
Net finance income/(expense) 4 (6) (5)
Profit before tax 614 2,679 5,931
Tax (117) (531) (1,135)
Profit for the period from continuing operations and attributable to
equity holders of the
parent company 497 2,148 4,796
=========== =========== ===============
Earnings per share (basic and diluted) from continuing operations 4.1 p 17.8 p 39.8 p
=========== =========== ===============
Earnings per ordinary share has been calculated on the basis of the result for the period
after tax, divided by the weighted average number of ordinary shares in issue in the period,
excluding those held in the ESOT, of 12,064,500. The comparatives are calculated by reference
to the weighted average number of ordinary shares in issue which were 12,040,608 for the period
to 30 June 2019 and 12,052,554 for the year ended 31 December 2019.
Condensed consolidated interim statement of
comprehensive income
Six months ended 30 June 2020
Audited
Unaudited Unaudited Twelve
Six months Six months months
to 30 to 30 to 31
June June December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Profit for the period 497 2,148 4,796
Other comprehensive income
Remeasurement of net defined benefit
surplus - - 581
Movement on deferred tax relating
to pension liability - - (98)
Cash flow hedging - current year
profit - 514 831
------------ ------------ ----------
Other comprehensive income, net of
tax - 514 1,314
------------ ------------ ----------
Total comprehensive income for the
period attributable to equity holders
of the parent company 497 2,662 6,110
============ ============ ==========
Condensed consolidated interim balance sheet
As at 30 June 2020
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Assets
Non current assets
Property, plant and equipment 13,823 14,109 14,251
Pension asset 2,205 1,630 2,205
Investment in joint ventures - - -
Deferred tax asset - 41 -
Total non current assets 16,028 15,780 16,456
---------- ---------- ------------
Current assets
Inventories and work in progress 7,246 10,755 8,342
Trade and other receivables 8,670 13,821 7,350
Cash and cash equivalents 17,475 10,008 17,856
Total current assets 33,391 34,584 33,548
---------- ---------- ------------
Total assets 49,419 50,364 50,004
---------- ---------- ------------
Liabilities
Current liabilities
Current portion of long term borrowings 1,375 250 1,500
Trade and other payables 19,050 23,292 19,433
Lease liabilities 38 - 105
Current tax payable 139 785 686
Total current liabilities 20,602 24,327 21,724
---------- ---------- ------------
Non current liabilities
Long term borrowings - 1,375 -
Lease liabilities - - 11
Deferred tax liabilities 176 - 176
Total non current liabilities 176 1,375 187
---------- ---------- ------------
Total liabilities 20,778 25,702 21,911
---------- ---------- ------------
Net assets 28,641 24,662 28,093
========== ========== ============
Equity
Share capital 1,293 1,293 1,293
Share premium 1,864 1,864 1,864
Capital redemption reserve 132 132 132
Other reserve (820) (1,161) (820)
Accumulated profits 26,172 22,534 25,624
Total equity 28,641 24,662 28,093
======= ======== =======
Condensed consolidated interim
statement of changes in equity
(Unaudited) Share Capital Other Accumulated Total
Share
capital premium redemption components profits equity
account reserve of equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2019 1,293 1,864 132 (1,675) 21,837 23,451
Equity dividends - - - - (1,565) (1,565)
Credit related to equity-settled
share based payments - - - - 114 114
--------- -------- ----------- ----------- ------------ --------
Transactions with owners - - - - (1,451) (1,451)
--------- -------- ----------- ----------- ------------ --------
Profit for the six months
to 30 June 2019 - - - - 2,148 2,148
Other comprehensive
income
Financial instruments - - - 514 - 514
--------- -------- ----------- ----------- ------------ --------
Total comprehensive
income for the period - - - 514 2,148 2,662
--------- -------- ----------- ----------- ------------ --------
At 30 June 2019 1,293 1,864 132 (1,161) 22,534 24,662
========= ======== =========== =========== ============ ========
At 1 July 2019 1,293 1,864 132 (1,161) 22,534 24,662
Credit related to equity-settled
share based payments - - - - (17) (17)
ESOT movement in period - - - 24 (24) -
--------- -------- ----------- ----------- ------------ --------
Transactions with owners - - - 24 (41) (17)
--------- -------- ----------- ----------- ------------ --------
Profit for the six months
to 31 December 2019 - - - - 2,648 2,648
Other comprehensive
income
Actuarial gain recognised
in the pension scheme - - - - 581 581
Income tax relating
to components of other
comprehensive income - - - - (98) (98)
Financial instruments - - - 317 - 317
--------- -------- ----------- ----------- ------------ --------
Total comprehensive
income for the period - - - 317 3,131 3,448
--------- -------- ----------- ----------- ------------ --------
At 31 December 2019 1,293 1,864 132 (820) 25,624 28,093
========= ======== =========== =========== ============ ========
At 1 January 2020 1,293 1,864 132 (820) 25,624 28,093
Credit related to equity-settled
share based payments - - - - 51 51
------ ------ ---- ------ ------- -------
Transactions with owners - - - - 51 51
------ ------ ---- ------ ------- -------
Profit for the six months
to 30 June 2020 - - - - 497 497
------ ------ ---- ------ ------- -------
Total comprehensive
income for the period - - - - 497 497
------ ------ ---- ------ ------- -------
At 30 June 2020 1,293 1,864 132 (820) 26,172 28,641
====== ====== ==== ====== ======= =======
Condensed consolidated interim cash
flow statement
Six months ended 30 June 2020
Unaudited Unaudited
Six months Six months Audited
to 30 to 30 Twelve months
June June to 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Group profit after tax 497 2,148 4,796
Taxation paid (664) (376) (959)
Interest received 30 15 43
Depreciation on property, plant and
equipment 979 862 1,814
Share based payment charge 51 114 97
Profit on sale of property, plant
and equipment (60) (112) (331)
Taxation charge recognised in income
statement 117 531 1,135
Net finance (income)/expense (4) 6 5
Decrease in inventories and work
in progress 1,096 1,256 3,669
(Increase)/decrease in trade and
other receivables (1,320) (6,294) 177
(Decrease)/increase in trade and
other payables (383) 4,803 1,532
------------ ------------ ----------------
Net cash flow from operating activities 339 2,953 11,978
------------ ------------ ----------------
Cash flows from investing activities
Purchase of property, plant and equipment (558) (657) (1,751)
Proceeds from sale of property, plant
and equipment 67 112 341
------------ ------------ ----------------
Net cash flow from investing activities (491) (545) (1,410)
------------ ------------ ----------------
Cash flows from financing activities
Interest paid (26) (21) (42)
Repayment of bank and other loans (125) (125) (250)
Capital element of leasing payments (78) - (166)
Equity dividends paid - (1,565) (1,565)
------------ ------------ ----------------
Net cash flow from financing activities (229) (1,711) (2,023)
------------ ------------ ----------------
Net (decrease)/increase in cash and
cash equivalents (381) 697 8,545
Cash and cash equivalents at beginning
of period 17,856 9,311 9,311
------------ ------------ ----------------
Cash and cash equivalents at end
of period 17,475 10,008 17,856
============ ============ ================
Notes to the interim accounts - as at 30 June 2020
Segmental Reporting
The Group trading operations of Billington Holdings plc are in Structural Steelwork and Safety Solutions, and all are continuing. The Structural Steelwork segment includes the activities of Billington Structures Limited and Peter Marshall Steel Stairs Limited, and the Safety Solutions segment includes the activities of easi-edge Limited and hoard-it Limited. The Group activities, comprising services and assets provided to Group companies and a small element of external property rentals and management charges, are shown in Other. All assets of the Group reside in the UK.
Unaudited Unaudited Audited
Six months Six months Twelve months
to 30 June to 30 June to 31 December
2020 2019 2019
GBP000 GBP000 GBP000
Analysis of revenue (including movement in
WIP)
Structural Steelwork 29,549 43,351 96,787
Safety Solutions 3,229 3,797 8,124
Other - - -
Consolidated total 32,778 47,148 104,911
================= ============= ===============
Analysis of Group operating profit before finance income/(costs)
Structural Steelwork (56) 1,966 4,315
Safety Solutions 661 733 1,639
Other 5 (14) (18)
Consolidated total 610 2,685 5,936
================= ============= ===============
Basis of preparation
These consolidated interim financial statements are for the six months
ended 30 June 2020. They have been prepared with regard to the requirements
of IFRS. The financial information set out in these consolidated interim
financial statements does not constitute statutory accounts as defined
in S434 of the Companies Act 2006. They do not include all of the information
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group
for the year ended 31 December 2019 which contained an unqualified audit
report and have been filed with the Registrar of Companies. They did
not contain statements under S498 of the Companies Act 2006.
These consolidated interim financial statements have been prepared under
the historical cost convention. The accounting policies have been applied
consistently throughout the Group for the purposes of preparation of
these consolidated interim financial statements.
Dividends
In the first half of 2019 Billington Holdings Plc declared a final dividend
of 13.0 pence per share amounting to GBP1,565,000. No final dividend
has been declared in the first half of 2020 as the dividend was suspended
to preserve cash resources. No interim dividend for 2020 has been declared
(2019: nil).
These results were approved by the Board of Directors on 21 September
2020.
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END
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