TIDMBILN
RNS Number : 2178K
Billington Holdings PLC
20 September 2016
20 September 2016
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,
today announces its interim results for the six months ended 30
June 2016.
Unaudited Unaudited Percentage
six months six months Movement
to 30 June to 30
2016 June 2015
--------------------------- ------------ ------------ -----------
Revenue GBP27.05m GBP24.55m 10.2%
--------------------------- ------------ ------------ -----------
EBITDA GBP2.36m GBP2.15m 9.8%
--------------------------- ------------ ------------ -----------
Profit before tax GBP1.74m GBP1.70m 2.4%
--------------------------- ------------ ------------ -----------
Cash and cash equivalents GBP6.24m GBP6.36m (1.9%)
--------------------------- ------------ ------------ -----------
Earnings per share from
continuing operations 11.70p 11.40p 2.6%
--------------------------- ------------ ------------ -----------
Highlights
-- Strong order book providing visibility into early 2017.
-- Strong, robust cash balance.
-- Positive contribution from all divisions which are operating at or above budget.
-- Good early progress made at the Shafton site in the initial
six months following its acquisition.
-- Market conditions remain positive.
-- Billington continues to invest in training and skills
development to support the strategic growth of the Company.
Mark Smith, Chief Executive Officer, commented:
"Thanks to the continued efforts of all Group divisions, I am
pleased to deliver this strong set of interim results which
highlight a successful start to 2016.
"Billington currently has the longest forward order book, in
relation to capacity, in the Group's history, and the strength of
this provides the Company with confidence going into the second
half of the year.
"Good progress is being made at the Shafton facility, acquired
in December 2015, which, in the long-term, will provide Billington
with the opportunity to further expand its operations and drive
greater efficiencies.
"With the headway made in the first half of the year, the next
six months are set to be a busy period for the Company, and the
Board and I are confident that Billington will deliver positive
full year results."
For further information please contact:
Billington Holdings Plc Tel: 01226 340666
Mark Smith, Chief Executive Officer
Trevor Taylor, Finance Director
Blytheweigh Tel: 020 7138 3204
Tim Blythe
Megan Ray
Rachael Brooks
W H Ireland Limited Tel: 0161 819 8875
Katy Mitchell
Chief Executive Statement
Introduction
I am delighted to deliver another strong set of interim results,
Billington has produced consistent revenue and profit growth over
the period and the Board is enthusiastic about the future.
The industry has witnessed an improving market environment since
2013 and Billington has capitalised on this by strengthening its
forward order book which now provides visibility towards mid-2017.
The Company has also focused on improving efficiencies which have,
in turn, led to consistent and steady improvements in margin.
Continued investment in Group companies and staff training has
ensured all divisions have positively contributed to the Company's
performance and this is expected to continue as Billington enters
into a very busy second half of the year.
Businesses
Billington Structures
With three sites across Barnsley and Bristol, Billington
Structures is a nationally recognised and award winning steelwork
contractor, with over 60 years' experience. Its primary activity is
the design, fabrication and erection of structural steel, and it
has the capability to process over 25,000 tonnes of steel per
annum.
Billington Structures has had a solid performance over the first
six months of the year and the investment in a new saw/drill line
at its Wombwell works in Barnsley has positively contributed to
this.
The business has delivered a number of successful projects
including One Bedford Avenue, London, Greenwich Peninsula Energy
Centre, Nottingham Leisure Centre, Cornwall Energy Recovery Centre,
Wellington Place, Leeds and RAF Brize Norton, Oxfordshire.
Billington continues to win work in its specialist sectors with
further projects due for completion in the second half of the year,
including the next commercial building on the Wellington Place
development in Leeds, various defence and data centre projects,
Interserve's new Head Office in Birmingham and a large leisure and
retail development in Romford.
Tubecon
Operating primarily in the UK construction and rail
infrastructure markets, Tubecon, a division of Billington
Structures, is a specialist in complex steel structures which
continues to add value to Billington's steelwork divisions.
The Roof Garden at 6 Bevis Marks, London, which was completed by
Tubecon, has been shortlisted for the 2016 Structural Steel Design
Awards.
Peter Marshall Steel Stairs
Peter Marshall Steel Stairs is a specialist company engaged in
the design, fabrication and installation of highly engineered
steelwork, staircases and balustrade systems. The division has had
a very busy first half which has included the completion of a large
project at Westfield, White City and a stair and secondary
steelwork package at the prestigious Sanger Institute in Cambridge.
The current order book contains work spanning to the close of
2016.
The division, which is trading profitably, has benefitted from
internal investment and offers Billington the ability to not only
provide a standalone product but also increases the offering of the
Group's structural steel operations.
easi-edge
easi-edge, a leading provider of safety solutions, primarily
supplies perimeter edge protection and fall prevention systems to
both Group and non-group companies operating in the UK construction
industry.
The division is currently working close to maximum utilisation
and is developing new products to further enhance its portfolio.
This year has seen easi-edge secure and carry-out contracts in
various sectors including timber and concrete.
hoard-it
hoard-it provides re-usable and eco-friendly site hoarding
solutions on a hire and sale basis. hoard-it was previously a
division of easi-edge and has now been transferred to a separate
legal entity from 1 April 2016.
The division is seeing continued growth and has had a very busy
first half with turnover up 29% from the same period last year. It
is also making good progress in product development and is
reviewing new systems to utilise the hoarding adjacent to road
carriageways. The Company continues to establish an increased
client base.
Shafton Steel Services
The newly acquired Shafton site is home to a state of the art
steel processing and profiling facility and is located five miles
from Billington's head office in Barnsley. It was acquired as part
of the Company's long term strategy and will provide the next stage
of growth for the Group.
Although no immediate production volume increases are
anticipated, the facility enhances the Group's current steel
processing abilities, provides adequate resources to substantially
increase production volumes, allows for the development of further
business opportunities, which are currently being reviewed, and
provides heavy-lifting capacity in all buildings.
In order for this long term strategy to be successfully
implemented, Billington is currently adapting the facility to
prepare it for full occupation once incumbent tenants relocate.
Extensive refurbishments are being made and planned for the site.
Good early progress has been made with turnover ahead of
expectations for the initial six months.
Shafton Steel Services has established a solid client base and
is securing repeat business.
Results
Revenue and Profit Before Tax
Group revenue and profit before tax both increased over the
period from GBP24.55 million in the first half of 2015 to GBP27.05
million in the first half of 2016 and from GBP1.70 million in the
first half of 2015 to GBP1.74 million in the first half of 2016,
respectively. These increases are largely attributable to all
divisions operating at or above budget and this is expected to
continue over the next six months.
Revenue has increased 10.2% from the corresponding period in
2015 and provides us with confidence of achieving a strong,
progressive set of results for the full year, in line with market
expectations.
Group Operating Profit
The Group Operating Profit for the period was GBP1.77 million
compared to GBP1.70 million for the same period in 2015. It is
pleasing to note that being selective with the contracts the
Company has undertaken, along with efficiency gains realised from
the fabrication facilities, have further yielded an improvement in
the level of margin the Company has achieved. The Group Operating
Profit margin was 6.5% for the six months to June 2016 as compared
with 5.4% for the twelve months to December 2015.
Earnings per Share
Earnings per share from continued operations stood at 11.7 pence
in the period, compared with earnings per share of 11.4 pence for
the corresponding period in 2015.
Liquidity and Capital Resources
Following the acquisition of the Shafton facility in December
2015 that utilised GBP2.4m of cash reserves, Billington has
continued to be cash generative and concludes the first half with a
cash balance of GBP6.24 million (2015: GBP6.36 million). A solid,
cash rich balance sheet, coupled with a significant forward order
book, provides the Group with the confidence to continue to pursue
its long-term growth strategy.
Dividend
Following the continued positive performance of the Group the
Board was pleased to announce an increased dividend of 6.0 pence
per share on the back of the 2015 full year results and this was
duly paid in July. As indicated in the 2015 Financial Statements,
the dividend has been set at a level that recognises the need to
reward shareholders as well as the anticipated funding requirements
in relation to the future development of the Company.
Prospects and Outlook
The Group is operating in an increasingly confident and
re-emerging market which has enabled growth and expansion. However,
there has been a big focus on Brexit over the past few months and,
although it may have impacted a minor number of projects, many
large opportunities remain in the market and Billington's long-term
strategy has not been adversely affected.
Billington has a strong forward order book with work secured
through to early next year and is continuing to see further tender
opportunities for work into 2017. However, the Company remains
aware and alert to the macro economic environment and the possible
impact and short term volatilities that may occur following Brexit.
The Company's strong balance sheet provides us with confidence that
the Company's long-term objectives shall not be significantly
impacted.
In addition, the acquisition of Shafton provides the Group with
the opportunity to further expand its operations and drive
efficiencies, as well as the potential to develop new business
opportunities.
Board and Employees
Billington continues to invest in the training and skills
development of its employees, supports local colleges and has well
established apprenticeship programmes. The Company believes it is
important to support the development of skills in the industry and
this is a strategy that we will continue to deliver.
Finally, I would like to take this opportunity to thank the
Board, our employees, our stakeholders and our shareholders for
their continued support and I look forward to a busy second half of
the year.
Mark Smith
Chief Executive Officer
20 September 2016
Condensed consolidated interim
income statement
Six months ended 30th June
2016
Unaudited Unaudited Audited
Six Six Twelve
months months months
to 30th to 30th to 31st
June June December
2016 2015 2015
GBP000 GBP000 GBP000
Continuing operations
Revenue, excluding movements
in work in progress 30,008 24,650 54,762
(Decrease)/increase in work
in progress (2,962) (101) 1,986
Revenue 27,046 24,549 56,748
========== ========== ==========
Raw material and consumables 15,957 14,848 36,172
Other external charges 1,926 1,679 3,537
Staff costs 6,083 5,243 11,099
Depreciation 592 450 1,097
Other operating charges 719 630 1,759
----------
25,277 22,850 53,664
---------- ---------- ----------
Group operating profit 1,769 1,699 3,084
Share of post tax profit
in joint ventures - - -
---------- ---------- ----------
Total operating profit 1,769 1,699 3,084
Net finance (expense)/income (31) (4) 26
Profit before tax 1,738 1,695 3,110
Tax (378) (373) (666)
Profit for the period from
continuing operations and
attributable to equity holders
of the parent company 1,360 1,322 2,444
========== ========== ==========
Earnings per share (basic
and diluted) from continuing 11.7 11.4
operations p p 21.1 p
========== ========== ==========
6.00 3.00
Dividends per share p p 3.00 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 ESOP Trust, of 11,603,836. The comparatives
are calculated by reference to the weighted average
number of ordinary shares in issue which were 11,579,708
for the period to 30 June 2015 and 11,585,041 for
the year ended 31 December 2015.
Condensed consolidated
interim balance sheet
As at 30th June 2016
Unaudited Unaudited Audited
30th 30th 31st
June June December
2016 2015 2015
GBP000 GBP000 GBP000
Assets
Non current assets
Property, plant and equipment 13,089 8,226 13,160
Pension assets 968 878 968
Investment in joint ventures - - -
Deferred tax asset 38 272 38
Total non current assets 14,095 9,376 14,166
---------- ---------- -----------
Current assets
Inventories and work in
progress 7,663 8,364 10,568
Trade and other receivables 6,747 4,225 5,315
Cash and cash equivalents 6,242 6,355 2,611
Total current assets 20,652 18,944 18,494
---------- ---------- -----------
Total assets 34,747 28,320 32,660
---------- ---------- -----------
Liabilities
Current liabilities
Current portion of long
term borrowings 267 45 301
Trade and other payables 14,774 11,919 13,344
Dividends payable - 388 -
Current tax payable 379 473 155
Total current liabilities 15,420 12,825 13,800
---------- ---------- -----------
Non current liabilities
Long term borrowings 2,375 257 2,492
Total non current liabilities 2,375 257 2,492
---------- ---------- -----------
Total liabilities 17,795 13,082 16,292
---------- ---------- -----------
Net assets 16,952 15,238 16,368
========== ========== ===========
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 (904) (910) (904)
Accumulated profits 14,567 12,859 13,983
Total equity 16,952 15,238 16,368
========== ========== ===========
Condensed consolidated interim
statement of changes in equity
(Unaudited) Share Share Capital Other Accumulated Total
reserve
capital premium redemption - profits equity
account reserve ESOP
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1st January 2015 1,293 1,864 132 (910) 11,925 14,304
Equity dividends declared - - - - (388) (388)
Transactions with
owners - - - - (388) (388)
-------- -------- ----------- -------- ------------ -------
Profit for the six
months to 30th June
2015 - - - - 1,322 1,322
Total comprehensive
income for the period - - - - 1,322 1,322
======== ======== =========== ======== ============ =======
At 30th June 2015 1,293 1,864 132 (910) 12,859 15,238
======== ======== =========== ======== ============ =======
At 1st July 2015 1,293 1,864 132 (910) 12,859 15,238
Equity dividends paid
to ESOP - - - - 41 41
Transactions with
owners
ESOP movement in period - - - 6 - 6
Transactions with
owners - - - 6 41 47
-------- -------- ----------- -------- ------------ -------
Profit for the six
months to 31st December
2015 - - - - 1,122 1,122
Other comprehensive
income
Actuarial gain recognised
in the pension scheme - - - - (66) (66)
Income tax relating
to components of other
comprehensive income - - - - 27 27
Total comprehensive
income for the period - - - - 1,083 1,083
======== ======== =========== ======== ============ =======
At 31st December 2015 1,293 1,864 132 (904) 13,983 16,368
======== ======== =========== ======== ============ =======
At 1st January 2016 1,293 1,864 132 (904) 13,983 16,368
Equity dividends declared - - - - (776) (776)
Transactions with
owners - - - - (776) (776)
-------- -------- ----------- -------- ------------ -------
Profit for the six
months to 30th June
2016 - - - - 1,360 1,360
Total comprehensive
income for the period - - - - 1,360 1,360
======== ======== =========== ======== ============ =======
At 30th June 2016 1,293 1,864 132 (904) 14,567 16,952
======== ======== =========== ======== ============ =======
Condensed consolidated interim statement
of comprehensive income
Six months ended 30th June
2016
Unaudited Unaudited Audited
Six months Six months Twelve months
to 30th to 30th to 31st
June June December
2016 2015 2015
GBP000 GBP000 GBP000
Profit for the period 1,360 1,322 2,444
Other comprehensive income
Remeasurement of net defined
benefit surplus - - (66)
Movement on deferred tax
relating to pension liability - - (5)
Current tax relating to
pension liability - - 32
----------- ----------- --------------
Other comprehensive income,
net of tax - - (39)
Total comprehensive income
for the period attributable
to equity holders of the
parent company 1,360 1,322 2,405
=========== =========== ==============
Condensed consolidated interim
cash flow statement
Six months ended 30th June
2016
Unaudited Unaudited Audited
Six Six Twelve
months months months
to 30th to 30th to 31st
June June December
2016 2015 2015
GBP000 GBP000 GBP000
Cash flows from operating
activities
Group profit after tax 1,360 1,322 2,444
Taxation paid (156) - (350)
Depreciation on property,
plant and equipment 592 450 1,097
Difference between pension
charge and cash contributions (61) (61) (123)
Profit on sale of property,
plant and equipment (117) (56) (197)
Taxation charge recognised
in income statement 378 373 666
Net finance expense/(income) 31 4 (26)
Decrease/(increase)in inventories
and work in progress 2,905 108 (2,096)
Decrease/(increase) in trade
and other receivables (1,371) 916 (235)
(Decrease)/increase in trade
and other payables 1,430 (88) 1,336
Net cash flow from operating
activities 4,991 2,968 2,516
---------- ---------- ----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (535) (521) (6,111)
Proceeds from sale of property,
plant and equipment 133 62 212
Net cash flow from investing
activities (402) (459) (5,899)
---------- ---------- ----------
Cash flows from financing
activities
Interest paid (31) (4) (7)
Proceeds of bank and other
loans - - 2,514
Repayment of bank and other
loans (151) (22) (45)
Equity dividends paid (776) - (347)
Employee Share Ownership
Plan share purchases - - (3)
Employee Share Ownership
Plan share sales - - 10
---------- ---------- ----------
Net cash flow from financing
activities (958) (26) 2,122
---------- ---------- ----------
Net increase in cash and
cash equivalents 3,631 2,483 (1,261)
Cash and cash equivalents
at beginning of period 2,611 3,872 3,872
Cash and cash equivalents
at end of period 6,242 6,355 2,611
========== ========== ==========
Notes to the interim accounts - as at 30(th) June 2016
Segmental Reporting
The Group trading operations of Billington Holdings plc are only
in Structural Steel, and all are continuing. This includes the
activities of Billington Structures Limited, easi-edge Limited and
Peter Marshall Steel Stairs Limited. The Group activities,
comprising services and assets provided to Group companies and a
small element of external property rentals and management charges,
are considered incidental to the activities of Billington
Structures Limited and have therefore not been shown as a separate
operating segment but have been subsumed within Structural Steel.
All assets of the Group reside in the UK.
Basis of preparation
These consolidated interim financial statements are for the six
months ended 30 June 2016. 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 2015 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 2016 Billington Holdings Plc declared a
final dividend of 6.0 pence per share amounting to GBP776,000
(2015: 3.0 pence, GBP388,000) to its equity shareholders. No
interim dividend for 2016 has been declared (2015: nil).
These results were approved by the Board of Directors on 19
September 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIFADIALIR
(END) Dow Jones Newswires
September 20, 2016 02:00 ET (06:00 GMT)
Billington (LSE:BILN)
Historical Stock Chart
From Apr 2024 to May 2024
Billington (LSE:BILN)
Historical Stock Chart
From May 2023 to May 2024