Revenues strengthen at South Yorkshire steel group despite dip in profits
Billington Holdings, the Barnsley-based listed steel group, has reported a rise in overall revenue despite profits taking a dip for the half year mark of 2018.
For the six months ending 30 June, the firm saw revenues increase 14.9% to £39.39m compared to the £34.29m achieved in the first half of 2017.
Billington noted that during this period “all if its companies have performed well, with Peter Marshall Steel Stairs and hoard-it having a particularly positive first six months of the year.”
Despite this increase in revenue, Billington’s pre-tax profit for the period fell 13.4% to £1.94m compared to £2.24m for the same period of 2017, and operating profit for the six months also fell to £1.96m.
The company said that this dip was a result of the macro-economic environment and increasing levels of competition, which together with the added capacity in the industry following increasing investments in automation, has had a short-term impact on tender pricing.
Consistent sustained increases in the price of raw materials have also added to margin pressures.
In addition, Billington announced that Ian Michael Lawson has been appointed as the new Non-Executive Chairman.
The board also confirmed that Peter Hems is stepping down as chairman, but has agreed to remain as a Non-Executive Director of the company until 31 December 2018.
Mark Smith, chief executive of Billington, said: “I am pleased to deliver this solid set of Interim Results. Overall, the Group has experienced an extremely busy first half of the year, which is reflected in an increase in revenue to £39.39m.
“Group companies have seen an increase in productivity, continued expansion and have carried out a diverse range and scope of projects during the period.
“During the period, the company was subject to movements in steel prices and a tightening of profit margins. However, Billington currently has a good forward order book and has secured a number of large, high quality projects to be undertaken in the second half of 2018, as well as exciting prospects for early 2019.
“This, together with continued market improvements, puts Billington in a robust position for the rest of 2018 and the Company expects to meet its full year forecast.”
