We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 5.00 | 1.02% | 495.00 | 490.00 | 500.00 | 530.00 | 490.00 | 515.00 | 139,105 | 14:43:13 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Heavy Construction, Nec | 86.61M | 4.73M | 0.3660 | 13.52 | 64.02M |
From Apr 2021 to Apr 2024
TIDMBILN
RNS Number : 3680M
Billington Holdings PLC
21 September 2021
21 September 2021
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 2021.
Highlights
Hot Features
Premium
Unaudited six Unaudited Percentage
months to 30 six months Movement
June 2021 to 30 June
2020
Revenue GBP37.73m GBP32.78m 15.1%
-------------- ------------ -----------
EBITDA GBP1.73m GBP1.59m 8.8%
-------------- ------------ -----------
Profit before tax GBP0.76m GBP0.61m 24.6%
-------------- ------------ -----------
Cash and cash equivalents GBP13.19m GBP17.48m (24.5)%
-------------- ------------ -----------
Earnings per share (EPS) 5.1p 4.1p 24.4%
-------------- ------------ -----------
-- Revenue increased by 15.1 per cent to GBP37.73 million (H1 2020:
GBP32.78 million) following some noted recovery from the worst
effects of the Covid-19 pandemic
-- Profit before tax increased 24.6 per cent to GBP0.76 million (H1
2020: GBP0.61 million)
-- Cash and cash equivalents decreased by 24.5 per cent to GBP13.19
million at 30 June 2021 (30 June 2020: GBP17.48 million and 31
December 2020: GBP15.13 million) with inventories and work in
progress increasing to GBP14.38 million (30 June 2020: GBP7.25
million). The average cash balance during the period was GBP16.19
million (H1 2020: GBP14.68 million)
-- The Group has seen an improvement in opportunities during the
period, but trading conditions, including pressure on margins
as a result of raw material price inflation, delays to project
starts and supply constraints remain across the industry
-- The Group has a strong current order book and pipeline of opportunities
providing a solid foundation for the second half of 2021 and into
2022
Mark Smith, Chief Executive Officer of Billington, commented:
"The first half of the year saw the continuation of the recovery experienced in the later part of 2020 as the market recovered from the worst effects of the Covid-19 pandemic. T he Group continued to face challenges, both from the impact of the Covid-19 pandemic and raw material price increases, together with supply constraints for certain materials and labour. However, whilst the overall market is challenging, the Directors believe the outlook for Billington is encouraging. The order book is at a consistently high level, comprising both delayed and new projects and the Group has good visibility of significant future prospects. We anticipate a further improvement in Group financial performance in the second half of the year, although the precise outturn for the year will be dependent on the timing of certain contracts, combined with any effects from continuing material price inflation and supply constraints. Whilst market conditions remain challenging, I remain confident in the long term prospects for the Group."
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 Jasper Berry IFC Advisory Limited Tel: 0203 934 6630 Tim Metcalfe Graham Herring Zach Cohen
Chief Executive Statement
Introduction
Following 2020, a year that was dominated by the impact of the Covid-19 pandemic, we saw the recovery evident in the later part of 2020 continue into the first half of 2021. Whilst the Covid-19 pandemic will continue to impact the demand for certain products and services for some time, revenues recovered by 15.1% to GBP37.73 million for the period.
Margin pressure remains across the industry and raw material price increases and the availability of certain products has been evident throughout the period although the signs are encouraging that these pressures have started to subside. However, we anticipate a further improvement in performance in the second half, whilst mindful of the continuing impact of the Covid-19 pandemic, particularly regarding the on-going delays to certain types of projects.
Billington remains a robust and profitable business, supported by a healthy balance sheet and committed workforce. The Group is well placed to take advantage of the significant number of opportunities at improving margin levels that are currently being presented.
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 15,000 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 50,000 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 many 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.
During the first half of the year the Group's structural steel business operated at near full capacity for much of the period, sub-contracting production as required to the longstanding, approved Group supply chain . Many of the projects undertaken were in areas not significantly impacted by the Covid-19 pandemic, such as large distribution warehouses, which have a larger steel content per man hour than more complex projects such as commercial offices, and as such attracted a lower, all be it positive margin. This work has enabled the efficient operation of the facilities and for the business to be well positioned for the future, particularly as projects in other sectors that have been delayed by the pandemic are restarted.
Billington Structures has a strong order book for the remainder of the year and is seeing significant future project opportunities. This includes a number of more complex projects at improving margin levels. Whilst the detailed timing of certain projects remains uncertain, the future prospects for Billington Structures are encouraging.
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, data, commercial offices, education, healthcare, rail and many more.
Peter Marshall Steel Stairs continued the strong performance seen in 2020 into the first half of the year, recording record revenues for a six-month period, with robust margins that have not been as heavily impacted as the Group's other structural steel businesses.
As one of the largest companies in its sector, during the period the company received its biggest single order, and enjoys a robust market position, particularly when viewed against its smaller competitors, in what is a fragmented market. It has a strong order book for the remainder of 2021 and into 2022.
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 of 2021, the business continued to suffer from Covid-19 related delays to the start of projects and a subdued commercial office market, although it remained a significant contributor to Group profits. The reduction in commercial office developments, in particular has a significant impact on easi-edge as these types of projects require a greater amount of product when compared to most other types of project, such as distribution warehouses, undertaken by the business.
However, easi-edge continues to see good opportunities, with utilisation forecast to increase throughout the remainder of 2021, although this is not expected to return to historic levels in the short to medium term.
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.
hoard-it enjoyed a strong first half of 2021 as projects resumed following the delays experienced in 2020 due to the Covid-19 pandemic. Projects were undertaken for both existing and new customers, as the client base expanded in line with the goal of ensuring the product is the number one choice for main contractors and developers in the construction industry, particularly 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 . hoard-it also continued to add to its product offering and an expanded graphics capability was introduced in the first half, which is being utilised on both hoard-it's own products and on those produced by others.
Financial Results
Revenue and Profit Before Tax
Group revenue increased by 15.1 per cent in the period to GBP37.73 million (H1 2020: GBP32.78 million) as the worst impacts of the Covid-19 pandemic receded and some previously delayed projects started and new business was secured.
Despite the continuing challenging market and operating conditions, the Group remained profitable and profit before tax for the period was GBP0.76 million (H1 2020: GBP0.61 million), an increase of 24.6 per cent.
Earnings per Share
Earnings per share for continued operations for the first half of the year increased by 24.4 per cent to 5.1 pence (H1 2020: 4.1 pence).
Liquidity and Capital Resources
The Group's gross cash and cash equivalents as at 30 June 2021 was GBP13.19 million, approximately a GBP2 million reduction in the balance as at 31 December 2020 of GBP15.13 million. The cash balance at 30 June 2021 reflected good cash collection and certain modest customer pre-payments, offset by an increase in inventories and work in progress to GBP14.38 million (30 June 2020 GBP7.25 million, 31 December 2020 GBP5.08 million) .
Capital Expenditure
Following the restriction of capital expenditure in 2020 to primarily essential repairs and renewals to ensure reliable production and to maintain quality , a number of larger capital expenditure programmes have been completed or initiated in the first half of 2021. These include the replacement of a current obsolete machine at our Yate facility and the installation of additional equipment to expand the current service offering of the Group at the Shafton facility. Additionally, major works have commenced at Billington Structures' facility in Wombwell, Barnsley to improve efficiency and enable a larger amount of steel to be stocked, if appropriate, taking advantage of any beneficial price fluctuations. The Group will continue to actively invest in appropriate areas.
Dividend
In the first half of 2021 Billington resumed the payment of dividends with the declaration of a final dividend in relation to the year ended 31 December 2021 of 4.25 pence per share amounting to GBP550,000, which was 2.66 times covered by 2020 earnings. No final dividend was declared in the first half of 2020 in relation to the year ended 31 December 2019 as the dividend was suspended to preserve the Company's cash resources. No interim dividend for 2021 has been declared (2020: nil), a policy consistent with prior years.
Corporate Social Responsibility
Throughout the Covid-19 pandemic the focus has been on the welfare and protection of our dedicated workforce. At the outset of the pandemic the Company committed to ensuring that appropriate measures were implemented at all our facilities in a timely manner and in adherence to UK Government guidance, ensuring that social distancing can be maintained.
At the peak of the pandemic in 2020, 46 per cent of the workforce were placed on furlough leave. During the later part of 2020 and into the first half of 2021 all of those previously on furlough returned to work. However, the Group does continue to experience some Covid-19 related disruptions to its operations with staff required to isolate, presenting some operational challenges, particularly post period end.
The Company took the decision to not claim any further furlough monies from the UK Government from 1 January 2021.
Market and Economic Outlook
Over the past year iron ore prices have more than doubled with a consequential similar impact on steel prices. Whilst the Group operates many fixed price supply contracts and has arrangements in place to mitigate some of the increases, we have suffered escalation in consumables and ancillary products that we have not been able to pass on. Prices appear to be stabilising, however, government infrastructure based stimulus packages across the globe and the development of HS2 in the UK are providing further demand led inflationary pressures and are restricting the supply of certain steel products.
Many of the markets in which Billington operates remain constrained, with a number of the main construction contractors continuing under significant pressure as they deliver contracts that were tendered for some time ago before the current inflationary pressures have materialised. However, the Group continues to focus on projects with the more robust larger contractors that can deliver an appropriate margin and we assess the risks associated with individual projects on a case-by-case basis.
Following the completion of the takeover of British Steel by Jingye in March 2020 we saw some stability return to the UK steel supply market. However, the Group continues to face an escalation in the price of steel, although it looks to mitigate the risk associated with price escalation as far as possible using a number of mechanisms, including the forward purchasing of steel where appropriate, this is having an impact on cash usage as noted above. The Group is also looking at its longer-term steel procurement strategy in order to reduce its reliance on any one supplier.
Prospects and Outlook
The Group continued to face challenges in first half of the year, both from the continuing impact of the Covid-19 pandemic and raw material price increases, together with supply constraints for certain materials and labour. However, whilst the overall market continues to be challenging, the Directors believe the outlook for Billington is encouraging.
We remain in a financially robust position and well placed for the future. I believe we have weathered the worst of the pandemic well and as the market returns to more normal operating conditions we are well placed. A number of our competitors and supply companies have suffered to a much greater extent than Billington, with a number ceasing to trade in the period. This, in time will aid margin improvement across the industry and shall create opportunities to secure new business.
The order book continues to grow, comprising both delayed and new projects and the Group has significant future order prospects at improving margins. There are many larger, more complex projects in prospect, and the number and quality of enquires continues to improve. We are seeing opportunities in all sectors, particularly large retail distribution warehouses, data centres, 'Gigafactories', food processing developments, public sector works, rail infrastructure, together with a return of some commercial office development projects. We anticipate a further improvement in Group financial performance in the second half of the year, although the precise outturn for the year will be dependent on the timing of certain key contracts, combined with any effects from continuing material price inflation and supply constraints. The Directors monitor the timing of contracts and the impact that has on our financial results closely, and we will update the market as to any material impact on market expectations when they become clear.
In closing, I would like to thank Billington's Board, employees, shareholders and all stakeholders for their continued support. Despite the market headwinds I look forward with optimism that the partial recovery seen in the first half will continue to gain traction in the remainder of the second half of the year and into 2022.
Mark Smith
Chief Executive
21 September 2021
Condensed consolidated interim income statement
Six months ended 30 June 2021
Unaudited Unaudited Audited
Twelve
Six months Six months months
to 30 to 30
June June to 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Continuing operations
---------------------------------------------------------- ----------- ----------- -----------------------
Revenue, excluding movements in work in progress 29,088 33,888 69,463
Increase/(decrease) in work in progress 8,645 (1,110) (3,508)
---------------------------------------------------------- ----------- ----------- -----------------------
Revenue 37,733 32,778 65,955
=========== =========== =======================
Raw material and consumables 24,324 20,524 40,514
Other external charges 2,189 1,719 3,917
Staff costs 8,050 7,605 16,028
Depreciation 969 979 1,911
Other operating charges 1,441 1,341 1,926
-----------------------
36,973 32,168 64,296
----------- ----------- -----------------------
Group operating profit 760 610 1,659
Share of post tax profit in joint ventures - - -
----------- ----------- -----------------------
Total operating profit 760 610 1,659
Net finance income 3 4 8
Profit before tax 763 614 1,667
Tax (145) (117) (298)
Profit for the period from continuing operations and
attributable to equity holders of the
parent company 618 497 1,369
=========== =========== =======================
Earnings per share (basic and diluted) from continuing
operations 5.1 p 4.1 p 11.3 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 12,103,647. The comparatives are calculated by reference
to the weighted average number of ordinary shares in issue which were 12,064,500 for the period
to 30 June 2020 and 12,082,548 for the year ended 31 December 2020.
Condensed consolidated interim statement of
comprehensive income
Six months ended 30 June 2021
Audited
Unaudited Twelve
Unaudited Six months months
Six months to 30 to 31
to 30 June June December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Profit for the period 618 497 1,369
Other comprehensive income
Remeasurement of net defined benefit
surplus - - (526)
Movement on deferred tax relating
to pension liability - - 100
Other comprehensive income, net of
tax - - (426)
------------ ------------ ----------
Total comprehensive income for the
period attributable to equity holders
of the parent company 618 497 943
============ ============ ==========
Condensed consolidated interim balance sheet
As at 30 June 2021
Unaudited Unaudited Audited
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Assets
Non current assets
Property, plant and equipment 14,473 13,823 14,536
Pension asset 1,683 2,205 1,683
Investment in joint ventures - - -
Total non current assets 16,156 16,028 16,219
---------- ---------- ------------
Current assets
Inventories and work in progress 14,380 7,246 5,078
Trade and other receivables 5,647 8,670 12,876
Current tax receivable 177 - 260
Cash and cash equivalents 13,192 17,475 15,126
Total current assets 33,396 33,391 33,340
---------- ---------- ------------
Total assets 49,552 49,419 49,559
---------- ---------- ------------
Liabilities
Current liabilities
Current portion of long term borrowings 250 1,375 250
Trade and other payables 18,116 19,050 18,607
Lease liabilities - 38 9
Current tax payable - 139 -
Total current liabilities 18,366 20,602 18,866
---------- ---------- ------------
Non current liabilities
Long term borrowings 875 - 1,000
Deferred tax liabilities 476 176 476
Total non current liabilities 1,351 176 1,476
---------- ---------- ------------
Total liabilities 19,717 20,778 20,342
---------- ---------- ------------
Net assets 29,835 28,641 29,217
========== ========== ============
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 (783) (820) (783)
Accumulated profits 27,329 26,172 26,711
Total equity 29,835 28,641 29,217
======= ======= =======
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 2020 1,293 1,864 132 (820) 25,624 28,093
Equity dividends - - - - - -
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
========= ======== =========== =========== ============ ========
At 1 July 2020 1,293 1,864 132 (820) 26,172 28,641
Credit related to equity-settled
share based payments - - - - 130 130
ESOT movement in period - - - 37 (37) -
--------- -------- ----------- ----------- ------------ --------
Transactions with owners 1,293 1,864 132 37 93 130
--------- -------- ----------- ----------- ------------ --------
Profit for the six months
to 31 December 2020 - - - - 872 872
Other comprehensive
income
Actuarial gain recognised
in the pension scheme - - - - (526) (526)
Income tax relating
to components of other
comprehensive income - - - - 100 100
Total comprehensive
income for the period - - - - 446 446
--------- -------- ----------- ----------- ------------ --------
At 31 December 2020 1,293 1,864 132 (783) 26,711 29,217
========= ======== =========== =========== ============ ========
At 1 January 2021 1,293 1,864 132 (783) 26,711 29,217
Profit for the six months
to 30 June 2021 - - - - 618 618
------ ------ ---- ------ ------- -------
Total comprehensive
income for the period - - - - 618 618
------ ------ ---- ------ ------- -------
At 30 June 2021 1,293 1,864 132 (783) 27,329 29,835
====== ====== ==== ====== ======= =======
Condensed consolidated interim cash flow
statement
Six months ended 30 June 2021
Unaudited
Unaudited Six months Audited
Six months to 30 Twelve months
to 30 June June to 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Group profit after tax 618 497 1,369
Taxation paid (62) (664) (844)
Interest received 13 30 41
Depreciation on property, plant and equipment 969 979 1,911
Share based payment charge - 51 181
Profit on sale of property, plant and
equipment (92) (60) (274)
Taxation charge recognised in income statement 145 117 298
Net finance income (3) (4) (8)
(Increase)/decrease in inventories and
work in progress (9,302) 1,096 3,264
Decrease/(increase) in trade and other
receivables 7,229 (1,320) (5,526)
Decrease in trade and other payables (491) (383) (826)
------------ ------------ ----------------
Net cash flow from operating activities (976) 339 (414)
------------ ------------ ----------------
Cash flows from investing activities
Purchase of property, plant and equipment (908) (558) (2,216)
Proceeds from sale of property, plant
and equipment 94 67 294
------------ ------------ ----------------
Net cash flow from investing activities (814) (491) (1,922)
------------ ------------ ----------------
Cash flows from financing activities
Interest paid (10) (26) (37)
Proceeds of bank and other loans - - 1,250
Repayment of bank and other loans (125) (125) (1,500)
Capital element of leasing payments (9) (78) (107)
Net cash flow from financing activities (144) (229) (394)
------------ ------------ ----------------
Net decrease in cash and cash equivalents (1,934) (381) (2,730)
Cash and cash equivalents at beginning
of period 15,126 17,856 17,856
------------ ------------ ----------------
Cash and cash equivalents at end of period 13,192 17,475 15,126
============ ============ ================
Notes to the interim accounts - as at 30 June 2021
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
2021 2020 2020
GBP000 GBP000 GBP000
Analysis of revenue (including movement in
WIP)
Structural Steelwork 33,830 29,549 58,951
Safety Solutions 3,903 3,229 7,364
Other - - -
Consolidated total 37,733 32,778 65,955
================ ============ ================
Analysis of Group operating profit before finance income
Structural Steelwork 306 (56) 387
Safety Solutions 438 661 1,242
Other 16 5 30
Consolidated total 760 610 1,659
================ ============ ================
Basis of preparation
These consolidated interim financial statements are for the six months
ended 30 June 2021. 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 2020 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 2021 Billington Holdings Plc declared a final dividend
of 4.25 pence per share amounting to GBP550,000. No interim dividend
for 2021 has been declared (2020: nil).
These results were approved by the Board of Directors on 20 September
2021.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR FLFLRASIIFIL
(END) Dow Jones Newswires
September 21, 2021 02:00 ET (06:00 GMT)
1 Year Billington Chart |
1 Month Billington Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
