Billington upbeat despite downturn

BILLINGTON Holdings, the structural steel and engineering group, said it was confident that it could weather the economic downturn as it reported profits up almost 10%.

Pre-tax profits from continuing operations increased to £5.2m for the year ended December 31, up from £4.8m. Revenues increased by 11.6% to £78.3m.

Peter Hems, executive chairman of the company, based in Wombwell, Barnsley, told TheBusinessDesk.com: “The key message is that we’re pleased with these results.

“I think it bodes well with the management in all of our businesses and now it’s a matter of battening down the hatches and making sure we’re in good shape for the future.”

Mr Hems said Billington’s disposal of its non-core assets to management backed by Yorkshire fund Endless last year had given it a strong balance sheet, enabling the group to stay on the look-out for acquisitive opportunities in the future.

Mr Hems, who said that group profits were ahead of brokers’ expectations, said that despite uncertainty with lower activity levels and margins at its structural steel contractor Billington Structures, the group’s forward order book remained strong.

“In particular, we are buoyed by our focus on the public sector, including schools and hospitals, and because we are a preferred supplier to a number of main contractors,” he said.

“The group continues to receive a good level of enquiries, and with our strong balance sheet, is well placed and confident of sustained strategic and long-term financial growth.”

Billington Structures posted flat profits of £4.6m, which was broadly in line with expectations.

Following the Endless deal, the group is mainly concentrating on Billington Structures which has worked in projects including schools, shopping centres and the Royal Shakespeare Companies theatre in Stratford upon Avon.

Mr Hems said the group had no plans to cut its workforce and that he was satisfied with Billington’s forward order book of £30m.

However, he warned that publicity surrounding drops in the price of steel were unrealistic and that they were impacting on margins.

He added that it was difficult to forecast when the downturn would end.

“I’ve been around a long time but I’ve never seen anything like this before,” he added.

Billington Holdings also owns Easi-edge, which provides safety equipment to the construction industry, and Dosco Overseas Engineering, which supplies mining machinery for a worldwide customer base.

Endless backed the management buyout of four businesses with turnover of £100m employing 800 people from Yorkshire quoted company Amco Corporation.

The move saw Leeds-based Endless buying the construction, manufacturing and property investment and development businesses for £9.4m of the former Wakefield-based group Amco which retained its structural steel business as well as its engineering operations and was renamed Billington Holdings.

Billington is recommending a final dividend of 7.75p, leading to a total dividend of 11.5p.