REG - Billington Holdings - Results for the year ended 31 December 2024
15/04/2025 07:02
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RNS Number : 9758E Billington Holdings PLC 15 April 2025
15 April 2025
Billington Holdings Plc
("Billington" or the "Company" or the "Group")
Results for the year ended 31 December 2024
Billington Holdings Plc (AIM: BILN), one of the UK's leading structural steel
and construction safety solutions specialists, is pleased to announce its
audited results for the year ended 31 December 2024.
Highlights
31 December 2024 31 December 2023 Change
Revenue £113.1m £132.5m -14.6%
EBITDA* £12.4m £15.5m -20.0%
Profit before tax £10.8m £13.4m -19.4%
Profit for the year £8.3m £10.3m -19.4%
Cash and cash equivalents £21.7m £22.1m -1.8%
Basic earnings per share 66.2p 84.4p -21.6%
Dividend per share, of which:
ordinary amount 25.0p 20.0p
additional exceptional amount nil 13.0p
--------- ---------
Total dividend per share 25.0p 33.0p
Return on Capital Employed (ROCE)** 36.9% 50.8% -27.4%
* Earnings before interest, tax, depreciation and amortisation
** Operating profit divided by average total equity less the net defined
benefit pension surplus and net cash - adjusted for £5.9m revaluation of
properties in 2023
• Billington delivered a robust performance in 2024 with strong trading across
the Group, despite a challenging market backdrop
• Revenue reduced by 14.6% to £113.1 million (2023: £132.5 million),
reflective of the exceptional year in 2023 and the trading conditions in 2024,
with a corresponding reduction in profits
• Profit before tax of £10.8 million, in line with upgraded market expectations
(2023: £13.4 million)
• Strong cash balance of £21.7 million maintained at year end (31 December
2023: £22.1 million) and the Group is debt free
• Average daily gross cash balance of £21.9 million during the year (2023:
£9.2 million)
• Strong level of production hours secured for projects due to be delivered in
2025 and 2026
• Dividend recommended of 25.0 pence per share, an increase of 25% over the
ordinary dividend of 20.0 pence per share paid in respect of 2023 (as
mentioned at the time, an additional exceptional amount of 13.0 pence per
share was paid in respect of 2023, reflective of the outstanding performance
of the Group in the year)
Mark Smith, Chief Executive Officer of Billington, commented:
"2024 was a strong performance by Billington, across all its business units,
with benefits being seen from the Group's capital investment programme, and
our specialist skills and innovative approach, against a very challenging
market backdrop, particularly in the second half.
"The Group has a strong level of contracts secured for delivery during 2025
and into 2026, combined with a significant pipeline of opportunities.
However, the overall reduction in industry demand is leading to pricing
pressure, particularly as competitors look to secure work to contribute to
fixed overhead recovery, and the precise timing of certain projects remains
uncertain. Despite these challenges Billington remains extremely well
positioned within its industry, with a strong balance sheet, strong product
offerings and an ability to weather downturns in a way that many of its peers
cannot.
"We are optimistic that the market will see some recovery later in 2025,
although the timing and nature of any upturn in economic confidence is
uncertain. Billington is very well positioned to take advantage of improved
market conditions when they arise and our financial stability and strong
orderbook provides cautious optimism for the future."
Investor Presentation
Billington's CEO, Mark Smith, and CFO, Trevor Taylor, will provide a live
presentation relating to the annual results via the Investor Meet Company
platform today, 15 April 2025, at 15.00 BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted via the Investor Meet Company dashboard at any time during
the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet
Billington via:
https://www.investormeetcompany.com/billington-holdings-plc/register-investor
(https://www.investormeetcompany.com/billington-holdings-plc/register-investor)
Investors who already follow Billington on the Investor Meet Company platform
will automatically be invited.
For further information please contact:
Billington Holdings Plc Tel: 01226 340 666
Mark Smith, Chief Executive Officer
Trevor Taylor, Chief Financial Officer
Cavendish Capital Markets Ltd - Nomad and Broker Tel: 020 7220 0500
Ed Frisby / Trisyia Jamaludin - Corporate Finance
Andrew Burdis - ECM
IFC Advisory Limited Tel: 020 3934 6630
Tim Metcalfe billington@investor-focus.co.uk
Graham Herring
Zach Cohen
About Billington Holdings plc
Billington Holdings plc (AIM: BILN), one of the UK's leading structural steel
and construction safety solutions specialists, is a UK based Group of
companies focused on structural steel and engineering activities throughout
the UK and European markets. Group companies pride themselves on the provision
of high technical and professional standards of service to niche markets with
emphasis on building strong, trusted and long-standing partnerships with all
of our clients. https://billington-holdings.plc.uk/
(https://billington-holdings.plc.uk/)
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
Chairman's Statement
In 2024 Billington delivered a robust performance, with strong trading across
the Group. 2023 was an exceptional year for Billington and the 2024
performance should be viewed in this context.
In 2024 revenue reduced by 14.6% to £113.1 million (2023: £132.5 million),
reflective of the exceptional year in 2023 and tougher 2024 trading
conditions, with a corresponding reduction in profit before tax to £10.8
million (2023: £13.4 million). The 2024 performance was significantly ahead
of that achieved by the Group in any year other than 2023 and we continued to
enjoy the benefit of improved manufacturing efficiencies and the successful
delivery of high-quality contracts. The Basic Earnings Per Share ("EPS") for
the year amounted to 66.2 pence compared with 84.4 pence in 2023.
The Group's balance sheet strengthened further with our capital investment
programme continuing across all the Group's production facilities. Net
assets were £53.0 million at 31 December 2024 (31 December 2023: £47.8
million), with a continuing strong gross cash balance of £21.7 million at 31
December 2024 (31 December 2023: £22.1 million) and the Group remains debt
free.
Billington Structures had a busy year in 2024, albeit the business did
encounter some project delays, specifically in the second half of the year,
reflective of the uncertainty in the period up to and following the UK General
Election, and a general slowdown in the UK economy. During the year the
business focused on more complex work, requiring less steel per factory hour,
leading to a lower turnover, although generating a better margin than more
commoditised structural steelwork projects. The business continues to target
sectors such as data centres and energy from waste where demand is more
buoyant and greater opportunities are being presented.
Peter Marshall Steel Stairs had a successful 2024, continuing the strong
performance seen over the past four years, operating at full capacity for much
of the year. The company currently enjoys a record order book for the
current year and into 2026, both for projects being undertaken by Billington
Structures and third parties, with significant prospects to secure further
business. Options are being investigated to increase capacity to meet the
expected future demand.
The Easi-Edge perimeter edge protection and fall prevention business enjoyed a
successful 2024, with an improved performance over 2023. Easi-Edge is
undertaking a programme of product replacement and enhancement through to
mid-2026 that should ensure it remains a profitable market leader and is even
better placed for the future.
Hoard-it enjoyed a record year in 2024, as it continued to expand and
diversify its offerings, including those offered by Brand-it. The business
is currently investigating moving to alternative premises in order to be able
to take advantage of the significant further growth opportunities being
presented.
Specialist Protective Coatings ("SPC"), formed in March 2022, has proved to be
an excellent addition to the Group, focused on surface preparation and the
application of protective coatings for products across a variety of sectors.
SPC enjoyed a record year in 2024, performing ahead of expectations. The
business has significant future opportunities in a variety of markets and
appropriate routes to increase capacity are being investigated.
The Group has a strong order book for the remainder of 2025, and into 2026,
and whilst certain project timings remain uncertain and pricing pressures have
increased in recent times, in what is becoming a very challenging market, the
Group is well placed for the future.
Dividend
In the first half of 2024 Billington declared a final dividend in relation to
the year ended 31 December 2023 of 33.0 pence per share, comprising an
ordinary dividend of 20.0 pence per share and an additional exceptional
dividend of 13.0 pence per share, reflective of the outstanding performance of
the Group in the year. This amounted to a total payment of £4.2 million,
which was 2.56 times covered by 2023 earnings.
The Board feels it is appropriate for Billington to continue to be dividend
paying at a level that reflects underlying earnings whilst continuing to
maintain a robust balance sheet. The Board is therefore pleased to be
recommending a 25% increase in the final ordinary dividend of 25.0 pence per
share for 2024, which is covered 2.65 times by earnings.
The dividend will be paid on 1 July 2025, subject to shareholder approval at
the Company's AGM expected to be held on 3 June 2025. The associated
ex-dividend date will be 5 June 2025 with a record date of 6 June 2025. No
interim dividend for 2024 was declared (2023: nil), a policy consistent with
prior years.
Our People
The key to Billington's continued success is the hard work and dedication of
its workforce, and I would like to place on record my thanks to the whole
Billington team for their contribution in 2024. The Group remains committed
to supporting its employees, particularly when cost of living challenges
continue to be experienced.
The Group continues to actively promote its apprenticeship and graduate
schemes and we were pleased to be awarded Gold Membership of the '5% Club' in
2024, whose members aspire to achieve 5% of their workforce in 'earn and
learn' positions (including apprenticeships, graduate schemes and sponsored
student placements) within five years of joining. This followed an
accredited benchmarking programme that recognised Billington's unwavering
commitment to empowering our employees through such earn and learn
initiatives.
The Group continues to focus on a variety of initiatives to address the
industry wide challenges in recruiting sufficient skilled labour, including
its ongoing partnership with Betterweld, a specialist training provider,
together with working in partnership with other local education providers.
ESG
Billington believes that operating in a sustainable and responsible manner is
key to the growth and success of the Group. The Group has an established
Environmental, Social and Governance ("ESG") committee to identify, develop
and implement carbon reduction projects, together with ensuring the Group's
social impact is optimised through the delivery of a wide range of social
projects.
Following carbon reduction initiatives across the Group, Billington is
committed to achieving, as a minimum, the goal set by SBTi (Science Based
Targets Initiative), of a 50% carbon emissions reduction by 2030 and net zero
by 2050. There is a significant global initiative to ensure 'clean steel'
and Billington are proud to be a member of SteelZero, a global standards and
certification initiative designed to deliver environmentally responsible
production of steel and speed up the transition to a net zero steel industry.
During 2024 the Group continued to use electricity procured from 100 per cent
green energy with a REGO accredited zero per cent emissions factor. The
vehicle fleet is increasingly electric and additional reduction activities
have included the trials for future introduction of Biofuel (HVO) across
factories and site-based activities. Additionally, during 2024 the Group
supported three Woodland Fund™ verified carbon offsetting projects, covering
UK forest creation, UK rewilding and sea kelp recovery and management.
Billington also maintains the 'Gold Standard' awarded by the British
Constructional Steel Association for meeting the requirements of the 'Steel
Construction Sustainability Charter'.
Industry
In 2023 a degree of stability returned on the supply side and this continued
in 2024, with the Group experiencing no significant supply issues.
The overall consumption of structural steelwork in the UK in 2024 declined
4.3% with a market output of 855,000 tonnes. Sector market forecasts
continue to be subject to revision as the impact of wider macroeconomic
factors are assessed.
The Group continues to benefit from significant projects in a variety of
sectors, with the complex requirements of energy from waste, high-tech
manufacturing, infrastructure and data centre facilities, being areas where
Billington is increasingly seen as the partner of choice. However, some of
the markets in which Billington operates continue to see reduced levels of
activity from historic levels, particularly large office developments, and
industrial warehousing development, with the reduction in economic confidence
from the middle of 2024 being most apparent.
We are conscious that many of the main construction contractors continue to
operate under significant pressure, with a number ceasing to trade in 2024.
The Group insures its exposure with the maximum available cover, in a
continuing difficult credit insurance market, and focuses on projects with the
more robust larger contractors that can deliver an appropriate margin. We
have a comprehensive process in place to assess the risks associated with
individual projects on a case-by-case basis to reduce and mitigate these
associated risks where possible.
On 20 September 2024, ISG Construction Holdings Ltd ("ISG") was placed into
administration. Billington had historically traded with various ISG trading
entities, delivering a number of high-profile projects, but at the time of
administration, all contracts with ISG, and its trading subsidiaries, were
substantially complete. I am pleased to report that the Group has, post year
end, received full settlement from its credit insurer in relation to ISG and
the financial impact on Billington has been materially restricted to the
excess on the Group's credit insurance policy.
British Steel has recently announced the potential closure of their blast
furnaces in the UK. Whereas there remains uncertainty as to the timing of any
closure, there is not anticipated to be any impact in the ability of British
Steel to service the UK constructional sections and rail markets, utilising
imported steel billet.
Current trading and outlook
Billington delivered a robust performance in 2024 with strong trading across
all the Group companies with increased benefits being achieved from the
Group's capital investment programme, and our specialist skills and innovative
approach, despite a challenging market backdrop.
The overall structural steel market currently remains subdued, with poor
overall business confidence and increasing pricing pressure on projects being
tendered. Order placement delays and contract deferments are increasingly
being noted as a result of poor consumer and business confidence. However, I
believe Billington is very well placed to deal with these challenges. We
have a strong factory workload, coupled with a consistent stream of
opportunities at sustainable margins, and with a strong balance sheet and
appropriately positioned businesses, I believe Billington is well placed to
deliver over the longer term.
In the current year, revenue and margin recognisable on contracts is
anticipated to be significantly weighted towards H2 2025 with a number of
large, profitable contracts, commencing in H1 and forecast to be substantially
complete in H2. Therefore, in order to reflect current market conditions, we
are now reducing our 2025 market expectations to revenues slightly ahead of
2024 and a profit before tax of £7.25 million.
In closing, I would like to thank Billington's Board, employees, shareholders
and all stakeholders for their continued support.
Ian Lawson
Non-Executive Chairman
15 April 2025
Group Strategy
The business model of the Group is to operate as a designer, manufacturer and
installer of structural steelwork through its subsidiaries Billington
Structures Limited, Peter Marshall Steel Stairs Limited and Specialist
Protective Coatings Limited, and as a supplier of safety solutions and barrier
systems to the construction industry, through its subsidiary Easi-Edge Limited
as well as providing specialist site hoarding and branding systems through
Hoard-it Limited. The parent company acts as a holding company providing
management services to its subsidiaries.
Billington strives for continuous improvement in all aspects of its operations
to ensure we harness the energy of our people and deliver for our repeat
clients in a safe, economic and sustainable manner, enabling the value for our
shareholders to be maximised.
The Company has adopted five key pillars to its strategy which constitute the
strategic objectives and focus of the business to drive shareholder value.
The five key pillars, or '5 P's', are underpinned by the Company's value
system and are focussed on developing, progressing and managing the areas that
can add value and protect our business from unnecessary risk to secure its
long-term future, and are set out below:
People
• To ensure a safe working environment and drive our safety culture forward
• To actively promote and encourage the next generation of people into our
exciting industry
• To harness individuals' energy, ambition and core skills
• To develop, motivate and inspire the next generation of people into and within
our business
• To evolve a diverse, inclusive and thriving workforce
• To promote a corporate culture based on sound ethical values and which fully
supports the Company's business model and strategy and to engender a culture
of delivering value to all stakeholders
Properties
• To ensure value is driven from our facilities
• To maintain a cost base to allow manufacturing margins to be optimised
• To ensure manufacturing capabilities are appropriate to service the needs of
our clients, projects and markets
• To have appropriate infrastructure to provide our businesses the ability to
grow and prosper
Product
• To provide a quality product using a right first-time philosophy
• To innovate and drive technological improvements across the businesses
• To challenge the status quo of manufacturing techniques in our industry
• To learn from our mistakes in an open, constructive and inclusive way
Position
• To be the partnered steelwork contractor of choice in the UK for major
projects
• To seek and expand the Group's operations to provide construction solutions to
our clients
• To actively identify, target and partner with clients on large projects to
maximise collective value
• To expand the Group's operations into markets which can add value to the
business and provide economic resilience
• To deliver long term sustainable returns and growth to our shareholders
Planet
• To operate with environmental considerations at the forefront of all
operational decisions
• To support, encourage and take an active involvement in the UK's structural
steelwork industry's drive for carbon reduction
• To ensure the company proactively seeks areas for energy reduction and
operational efficiencies
• To reduce waste through proactive engagement with clients, optimum engineering
and partnerships with the supply chain
Chief Executive Statement
Operational Review
2024 was a strong performance by the Group, across all its business units,
against a very challenging market backdrop, particularly in the second half.
2023 was an exceptional year for the Group and, as forecast, this was not
repeated in 2024. However, it is pleasing that the 2024 performance was
significantly ahead of that achieved in any other year in the Group's history
and outperformed the expectations set at the start of the year.
In 2024 a significant number of high-quality contracts were secured at
attractive margin levels, including the largest contract in the Group's
history, with Acciona for the North London Heat and Power (NLHPP) project.
The Group continues to benefit from a focus on winning business that can
deliver appropriate margins across a wide variety of sectors, improved
manufacturing efficiencies and from the deployment of its capital investment
programme across all the Group's production facilities. During the year the
Group also recruited additional skilled labour and further expanded the
services the Group is able to offer, ending the year with a record number of
employees.
This has allowed Billington to grow market share in all its areas of focus and
I believe the Group is well placed for the future to navigate challenging
economic times and take advantage of opportunities. In particular,
Billington's market position, historic and ongoing investment programme, and
substantial order book means that the Group is well positioned to cope with
increasing pricing pressures being experienced in a market suffering from
reduced demand, reflective of the current lack of UK economic confidence.
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 10,000
tonnes. With two facilities in Barnsley and a further facility in Bristol
and a heritage dating back over 75 years, the business is well recognised and
respected in the industry with the capacity to process 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, allowing for the supply of
value added, complementary products and services enhancing the comprehensive
offering of the Group.
The Group's structural steel businesses had a strong 2024, with a focus on
more complex projects with a reduced quantum of steel per factory hour on
average than previously. This is reflected in a lower turnover for the
structural steel businesses. Margins earned on projects were enhanced through
efficiency gains and capitalising on opportunities to optimise designs through
value engineering. During the year capacity was increased through the
establishment of a night shift at Shafton from November 2024 and the
recruitment of additional steel fabricators.
The business continues to serve a wide variety of markets, with a good and
diverse portfolio of customers. Particularly strong demand is continuing to
be seen in the energy from waste and data centre sectors, with others, such as
film studios, showing signs of recovery. In particular, Billington has built
a strong position in the energy from waste sector and is well positioned to
win further business in what is a complex market with less competition.
Whilst large office developments remain limited and industrial warehousing
developments remain at lower than historic levels, Billington Structures
continued to secure contracts in these areas.
During the year Shafton Steel Services, utilised its market leading processing
capabilities to undertake a number of sizeable projects for customers outside
of the Group which included large plate profiling and cutting, countersinking
and the manufacture of specialist large fittings. The business has a strong
orderbook and a healthy pipeline of future business with new and existing
clients.
The larger projects undertaken by Billington Structures during 2024 included:
• Amazon Fulfilment Centre - Distribution - Hull
• Wells House - Commercial Offices - Oxford Street, London
• Greggs Manufacturing Facility - Industrial - Derby
• Rivenhall EfW - Power Generation - Essex
• Circle Square - Commercial Offices - Manchester
It is pleasing to note that again some of the Company's complex and
challenging projects were recognised in some of the industry's most
prestigious awards. This included the Skelton Grange energy from waste
project being the overall winner in the 'Industrial Projects' category at the
UK Tekla Awards 2024. In addition, we were pleased to receive an 'Excellence
Rating' from the Considerate Constructors Scheme (CCS) for the development at
Circle Square, Manchester, recognising Billington Structures' commitment to
excellence across workforce, environment and community engagement.
Further large items of capital equipment were purchased for Billington
Structures in 2024 to further enhance the business' capacity and capability,
including approximately £2.3 million invested in a large laser cutting
machine and a cope drill machine. The Group is currently in the last year of
its five year capital investment and modernisation programme and further
investment is planned in 2025, before capital expenditure reduces in future
years.
Billington Structures has a very healthy order book relating to the quantum of
productive hours secured, at record levels, providing good visibility for the
remainder of 2025 and confidence that Billington Structures will remain a
positive contributor to the Group, although there is uncertainty over when
certain projects will start, particularly due to lengthy planning processes
and an overall shortage of work in the industry, which is leading to
aggressive price competition.
Tubecon
Tubecon is one of the UK's leading structural steel fabricators specialising
in Architecturally Exposed Structural Steelwork (AESS), complex steel
structures and bridges in a number of sectors including retail, commercial,
public buildings, education, health, rail, sport and leisure, artworks, and
infrastructure projects across the UK.
In April 2024 the Group recruited a number of specialist bridge fabricator
employees from S H Structures when it was placed in administration. This has
significantly increased the capacity and capability of Tubecon to provide a
full service from concept to delivery of complex steel bridges. On behalf of
the Board I welcome the S H Structures employees to the Group.
Tubecon has secured significant new business in 2024, for delivery in 2025,
and has a healthy pipeline of further opportunities. The Group is
undertaking a capital expenditure programme, expected to complete in mid 2025
and anticipated to cost circa £1.7 million, which includes a new workshop
building at the Group's Shafton site, to ensure Tubecon has the capacity and
capabilities to manufacture the most complex bridges. This investment will
provide a credible new entrant to this market, one which we believe is able to
address limitations with incumbent suppliers.
Specialist Protective Coatings
Specialist Protective Coatings was formed in March 2022 following the
Company's acquisition out of administration of the trading assets of Orrmac
Coatings Ltd. SPC is focused on surface preparation and the application of
protective coatings for products across a wide variety of sectors including
the power generation, water, infrastructure, commercial office and data centre
sectors. In addition, the Group has continued to expand its dedicated
on-site painting service to enable SPC to be a one-stop-shop for the painting
requirements for the structural steel sector.
The business has made excellent progress since its formation and it is now
fully integrated within the Group, servicing both internal Billington work and
a growing base of external customers. In 2024 the business introduced a
night shift and operated at near full capacity, trading ahead of management's
expectations and enabling the business to focus on performance enhancing work.
In particular, SPC is gaining industry leading recognition in the water sector
and is now Drinking Water Inspectorate (DWI) approved. The business is
therefore well positioned to take advantage of increased infrastructure
investment being undertaken in the water sector.
The addition of SPC to the Group offering and it's improving efficiency has
significantly improved the overall performance of the internal Billington
companies that utilise its services, mitigating risk and cost to Billington,
while being an additional independent profit generator for the Group.
Notable projects undertaken by SPC in 2024 included:
• Telehouse Data Centre - London
• Wells House - London
• Cuckoos Hollow Bridge - Peterborough
• Westfield EfW - Glasgow
• LON1X Data Centre - London
SPC currently has a strong pipeline of work and is again expected to be
operating at near maximum capacity during 2025. With the significant future
opportunities for SPC the Group is looking at appropriate options to
potentially increase capacity.
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 for both Billington Structures projects and those
contracts being undertaken by others. It has the capability to deliver stair
structures for the largest construction projects and in 2024 supplied projects
including commercial offices, power generation, data centres, distribution
warehouses and leisure schemes.
Peter Marshall Steel Stairs had an extremely successful 2024, maintaining
robust margins and operating at over capacity at times, utilising partner
companies to assist in the successful delivery of its significant workload,
alongside Billington Structures and for third parties. Additionally, the
business has effectively increased its capacity during 2024 through moving
certain operations to other Group sites, focusing on efficiency and the
appropriate use of third party contractors to realise its full potential.
Contracts were secured from a variety of sectors, and notable projects
undertaken by Peter Marshall in 2024 included:
• Manchester Airport - Manchester
• Eastbrook Film Studios - Dagenham
• One Liverpool Street - London
• Lidl Belvedere - London
• Bankside Yards - London
Peter Marshall Steel Stairs currently has a strong order book providing good
visibility for 2025 and into 2026, and is very well positioned for the future.
Easi-Edge
Easi-Edge is a market leading site safety solutions provider of temporary
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 legislative driven market. Easi-Edge is a founder member
of the Edge Protection Federation (EPF) and has developed a training course to
qualify personnel working in the construction industry and explain the
requirements of edge protection on site. As falls from height remain one of
the main causes of injuries and fatalities within the industry, installing
edge protection correctly is fundamental to site safety.
In 2024 Easi-Edge continued as a significant contributor to Group profits,
with an improved performance reflecting changes within the business and
increased utilisation rates, including entrance into new market sectors.
During the year the business cemented its market leading position and despite
challenges presented by project delays and a poor overall market, projects
were secured in a variety of sectors including commercial offices,
distribution warehouses, data centres, leisure, health and education.
Easi-Edge's product range is undergoing a £1.3 million modernisation and
improvement programme, with all barrier stock expected to be replaced by mid
2026. This new lighter weight designed barrier will enable the business to
provide its clients with an improved product which will protect and promote
its market position and long term margin generation, together with providing
access to additional revenue streams. The Easi-Edge business has a bright
future and the investments being made should ensure its position is
sustainable over the long term.
In 2025 Easi-Edge has experienced a reduction in large scale industrial and
commercial project opportunities for its products, and as a result, is
encountering competitors discounting their products to maintain product
utilisation rates.
Significant projects undertaken by Easi-Edge in 2024 included:
• 325 Deansgate - Residential - Manchester
• Culture House - Residential - Sunderland
• Central Park - Education - Liverpool
• CityLabs - Healthcare - Manchester
• Vantage Data Centre - Data - Newport
Hoard-it
Hoard-it designs, fabricates and manages a range of environmentally
sustainable, re-usable, temporary hoarding solutions which are available on
both a hire and sale basis, tailored to the requirements of its customers.
The Hoard-it offering is complimented by Brand-It, providing an on-site
graphics solution utilised on both Hoard-it's own products and increasingly on
those installed by others as Brand-it expands its product offering.
Hoard-it had an exceptional year in 2024, with continued growth and margin
improvement, as new clients and new projects were secured in sectors ranging
from residential to manufacturing, commercial and retail developments. The
business operated at full capacity for much of the year and benefited from the
Group's investment in stock levels in advance of anticipated demand, enabling
rapid deployment of its solutions. The business is now established as one of
the leading suppliers in its sector and is increasingly being seen as the
supplier of choice, both in commercial and residential developments.
This strong performance is expected to continue in 2025, although contract
delays and deferments have been experienced since the start of 2025. The Group
is looking to secure additional premises for Hoard-it to accommodate future
growth and enable the business to build on the exceptional performance
delivered in 2024 when market conditions permit.
During the year Brand-it's graphics solutions were further expanded. This is
a value added, margin enhancing product, that has also been a catalyst for the
strong performance. In particular, it has enabled the business to be
increasingly attractive for residential developments.
Significant projects were undertaken for both new and existing customers and
notable projects in 2024 undertaken by Hoard-it included:
• RAF Trenchard - Aylesbury
• Novotel - London
• YTL - Bristol
• Belfry Leisure - Birmingham
• Clipfine - Manchester
Our People
Billington finished 2024 with a record number of employees, with 520 employed
at the year end, an increase of 12% over the 463 employed at the end of
2023. These additional highly skilled staff reflect the expansion across the
Group, including the implementation of a night shift at Shafton, the
recruitment of specialist bridge fabricator employees from S H Structures for
Tubecon and further expansion across all Group companies.
In 2024 the Group has particularly taken advantage of skilled labour available
locally to many of its businesses as other companies have faced difficulties
and reduced their labour forces or ceased business entirely. We will
continue to assess opportunities to take on additional employees with the
appropriate skills as they are presented.
In addition, the Group continues to focus on its schemes to train and develop
skilled labour. Close relationships are being maintained with a number of
local education providers, and the Group has provided support to the regional
education sector through collaborations with Barnsley College, Bath College,
the University of Sheffield and Sheffield Hallam University. The Company
regularly attends educational career days, hosts school visits to its sites
and seeks to develop talent from a young age with its range of internal
training programmes across all departments of the business.
Billington continues its partnership with Betterweld, a specialist training
provider, to provide fabrication/welding training in Bristol, as well as for
its two Barnsley based facilities. This partnership is providing good access
to trained personnel on a consistent basis through the structured training and
development programme. Internally, the Billington Academy continues to
assist apprentices and other staff with training and upskilling, including
business best practice and compliance training.
We continue to actively promote the Company's apprenticeship and graduate
schemes in other areas, particularly focusing on technical staff.
Additionally, Billington continues as an advocate, promoter, and contributor
to the British Constructional Steelwork Association's CRAFT apprentice
programme. The scheme has become an important path for the Group to train,
educate and progress structural steelwork fabricators.
Health, Safety, Sustainability, Quality and the Environment
A commitment to health, safety, sustainability, quality and the environment is
core to everything that Billington does.
Across the Group, led by our Health and Safety department, we work to ensure
that continued progress can be achieved in enhancing working practices and
improving the safety culture at all the Group's facilities and in our on-site
activities. The Group aims to be proactive in the identification, reporting
and resolution of risks both on site and in our production facilities to
ensure that we are able to mitigate the risks and promote safe ways of
working, with the goal of eliminating all avoidable accidents. We are also
actively involved in a number of initiatives both locally and nationwide to
ensure the safety of our and other's staff.
I am immensely proud that in 2024 Billington did not encounter any RIDDOR
incidents in respect of its own workforce and this achievement is testament to
the hard work and dedication of our teams who strive for this milestone.
Minimising the impact of our operations on the environment remains a key
focus. The Group has implemented a number of initiatives aimed at reducing
the carbon footprint of our activities and all of the Group's businesses are
now certified as 'carbon neutral' by Carbon Neutral Britain, following their
audit of emissions and carbon dioxide offsetting programmes. All energy
contracts entered into by Group companies are, since May 2023, on 'green'
tariffs that include carbon offsetting. We are also focused on reducing
energy usage where possible, altering or replacing machinery where
appropriate, and utilising hybrid, electric and biofuel vehicles. SteelZero,
a commitment to become carbon neutral and employ a responsible steel sourcing
strategy was joined in 2022 as part of the Group's journey to be a leader in
driving carbon reduction initiatives.
The Group is also conscious of other environmental impacts from its operations
and is seeking to reduce these as far as possible. Weld fume extraction is
one area of particular focus and covered by extensive legislation. Continued
investments are being made in this area in this area to ensure the Group meets
current and expected future legislative requirements, together with ensuring
the safety and wellbeing of its staff and the wider community.
Charity
In 2017 the Billington Charity Foundation was established and Billington
continues to be a significant advocate and supporter of both local and
national charities.
Throughout 2024, Billington donated to charities including Cancer Research UK,
Barnsley Hospice, Fareshare Yorkshire, a variety of other cancer related
charities and Yorkshire Children's Charity, together with a range of local
sports teams and other causes of which our employees are involved. The Group
actively encourages involvement in initiatives intended to improve the local
areas in which our people live. Every year the Billington team is asked to
choose a charity they would like to see the Group support and the Group's
charity of the year for 2024 was Cancer Research UK, as in 2023.
Steel and Wider Construction Industry
2024 was a period of relative supply side price stability, with the steel
material prices largely remaining stable although some price rise
notifications were experienced in the later part of the year. The Group
continued to be able to hedge its steel requirements for secured contracts,
providing price certainty for customers and contract margins. Some projects
have returned to the market as a result of the stabilisation of steel and
other building material prices, although this has not offset the negative
impact on the overall level of activity from the deteriorating UK economic
confidence experienced since the middle of 2024.
The UK currently continues on its journey to become net zero by 2050. The UK
steel industry is undergoing a transformational change as domestic steel
producers transition from blast furnace virgin steel production to electric
arc recycled steel production. The decommissioning of domestic blast
furnaces and subsequent replacement of lower emitting electric arc furnaces is
not anticipated to significantly impact the availability of the primary
products the Group utilises.
Billington keeps its steel supply options under constant review and employs a
variety of measures to allow the Company to reduce its exposure to volatility
in steel prices and any variability in supply over the short term. The
Company has a forward looking strategy, with hedging undertaken in times of
price stability or rising prices, coupled with appropriate stockpiling of
steel, to enable most project's principal pricing risk to be covered.
Although, over the longer-term, any price rises are passed onto customers as
far as possible. The Group also continually reviews its steel procurement
strategy in order to reduce its reliance on any one supplier as far as
possible.
The Company communicates fully and openly with customers regarding costs of
work undertaken and provides accurate and honest guidance and advice to
customers to ensure their requirements are met.
The Company strives to develop positive relationships with suppliers to ensure
both parties understand each other's problems and requirements. It will not
use current or potential contracts to coerce suppliers into unsustainable
offers.
The Company treats its staff fairly in all aspects of their employment,
valuing their contribution to the achievement of Company objectives and
providing them with opportunities for training and development.
The Company is proud of its long standing and committed partner relationships
with its supply chain and in turn seeks to treat them fairly with timely
payment for works and the continued implementation of a 'no retention' policy.
The Group also continues to actively work with trade bodies to seek to
remove all cash retentions in the industry and achieve reasonable contract
terms and conditions.
Strategy, Investment and Acquisitions
The Group has continued its strategy of improving operating margins through
the investment and upgrading of some principal items of capital equipment,
combined with projects to increase the capacity from the Company's fixed asset
base and adding additional headcount where appropriate. 2024 was the fourth
year of the Group's five-year capital replacement programme and further
capital expenditure is expected in 2025, before reducing to lower levels in
subsequent years.
During the period the Group capitalised on the opportunity to subsume a number
of staff from SH Structures Ltd, following their administration, to expand the
capabilities and capacity to secure and deliver large and complex steelwork
projects, including bridges. A new dedicated production facility is currently
under construction at our Shafton site and this is anticipated to be
operational in June 2025.
We also continue to assess suitable acquisition opportunities as they arise
and the Company's strong balance sheet provides the ability for the Group to
undertake complimentary acquisitions. The Group is currently debt free with
a very strong cash balance, and the three year £6.0 million Revolving Credit
Facility entered into with HSBC provides additional flexibility to capitalise
on acquisition opportunities should suitable and appropriate prospects be
identified.
Prospects and Outlook
I am pleased with the performance across the Group in 2024, in what were very
challenging market conditions, particularly in the second half of the year.
The Group's investment in efficiency improvements, the latest capital
equipment and growing its team of skilled people, coupled with the Group's
strong market position and increased offering, is enabling the Group to grow
market share, achieve appropriate margins and to focus on those sectors that
can deliver the highest available returns.
The Group has a strong level of complex, labour intensive contracts secured
for delivery during 2025 and into 2026, combined with a significant pipeline
of opportunities. However, the overall reduction in industry demand is
leading to pricing pressure, particularly as competitors look to secure work
to contribute to fixed overhead recovery, and the precise timing of certain
projects remains uncertain. Despite these challenges Billington remains
extremely well positioned within its industry, with a strong balance sheet,
strong product offerings and an ability to weather downturns in a way that
many of its peers cannot.
As a responsible business we remain alert to wider industry dynamics and
continually review the Group's operations to ensure that they are reflective
of the current and projected future market environments in which we operate.
Timing of contract deliveries during 2025 will likely result in performance
being more heavily weighted towards H2 than the Company has previously
experienced, as a result of a smaller number of high value contracts
commencing during H1, which are currently expected to realise margin in H2.
Therefore, in order to reflect current market conditions, we are now
reducing our 2025 market expectations to revenues slightly ahead of 2024 and a
profit before tax of £7.25 million.
We are optimistic that the market will see some recovery later in 2025,
although the timing and nature of any upturn in economic confidence is
uncertain, and Billington is very well positioned to take advantage of
improved market conditions when they arise. Our financial stability and strong
orderbook, in what is a challenging market, provides cautious optimism for the
future.
In closing, I would like to thank Billington's Board, shareholders and all
stakeholders for their continued support, and in particular I would like to
thank the Billington workforce for their hard work and dedication.
Mark Smith
Chief Executive Officer
15 April 2025
Financial Review
Consolidated Income Statement
2024 2023
£'000 £'000
Revenue 113,061 132,495
Operating profit 10,021 13,246
Profit before tax 10,814 13,388
Profit after tax 8,272 10,325
Profit for shareholders 8,272 10,325
Operating profit margin 8.9% 10.0%
Return on capital employed* 36.9% 50.8%
Earnings per share (basic) 66.2p 84.4p
*Operating profit divided by total equity less the net defined benefit pension
surplus and net cash - adjusted for £5.9m revaluation of properties in 2023
Revenue decreased 14.6% year on year principally as a result of an increased
mix of complex, labour intensive contracts with a lower proportion of steel
content relative to productive labour requirements. Structural Steel revenue
decreased 16.9% and output related to Safety Solutions increased 9.9%,
primarily related to additional site hoarding provided through Hoard-it.
The Structural Steel segment relates to Billington Structures, Peter Marshall
Steel Stairs and Specialist Protective Coatings. Productive output, measured
as the number of direct productive hours expended on contracts, was 2.5%
higher in 2024 reflecting the complex, labour intensive contracts being
delivered in the period. 2024 continued to see significant increases in
direct labour employed, both from the UK and overseas, allowing the entities
to expand their productive capacities and enhance the recovery of overheads
and mitigate inflationary pressure. During the latter part of 2024
Billington Structures implemented a moderate fabrication night shift at its
Shafton facility to further increase the productive capacity of the company.
Forecasts indicate that the consumption of structural steelwork within the UK,
in 2024, declined 4.3% with an output of 855,000 tonnes, down from 893,000
tonnes in 2023. The Group remains a top tier structural steelwork fabricator
in the UK and European markets and is increasingly seen as the contractor of
choice for large, complex contracts in the UK.
The Company secured a number of significant contracts in 2024 for delivery in
2025 and 2026. A record level of secured productive hours provides longer
visibility for the Company in a subdued and uncertain market.
Current market sector projections indicate that UK structural steelwork
consumption will increase by 1.4% to 867,000 tonnes in 2025 and further
increase 1.8% to 883,000 tonnes in 2026. UK general election uncertainty and
the subsequent budget announced tax rises, combined with the wider volatile
geopolitical climate has led to a market with subdued confidence to commit to
construction projects. As a result of these economic uncertainties the
market is experiencing an increasing number of cancelled or deferred
contracts. Further forecast reductions in interest rates and a more stable
economic landscape in the UK in second half of 2025 is anticipated to have a
positive impact across the sector and allows the Company to look forward with
optimism.
Underlying operating margins decreased to 8.9% in the year. Once the
non-recurring impact of raw material price reductions experienced in 2023 are
removed, the 2024 result is broadly consistent with that delivered in 2023.
Continued efficiency gains as a result of the Group's further capital
expenditure and modernisation programme, combined with increased productive
labour has, and will continue to, mitigate to a certain extent the reduction
in pricing levels of contracts associated with reduced output in the sector.
Furthermore, hedging of energy costs and the more stable wholesale pricing
environment led to energy costs broadly consistent with 2023.
The operating margin achieved within the Safety Solutions entities increased
to 18.9% (2023: 13.8%) as a result of increased volumes of output in the
Easi-Edge and Hoard-it businesses. The operating margin achieved within the
Structural Steelwork entities decreased to 9.3%, from 10.5% in 2023,
principally as a result of non-recurring raw material purchasing gains
capitalised upon in 2023.
Underlying earnings per share decreased from 84.4 pence in 2023 to 66.2 pence
in 2024, a decrease of 21.6%.
In 2024 ISG Construction Holdings Ltd ("ISG") unfortunately entered
administration. Billington Structures had delivered, and was nearing
completion of, a number of significant contracts at the time of the
administration. A claim was submitted on the Group's credit insurance policy
and the impact was materially limited to the excess on the policy. Whereas a
delay in contract receipts was noted, all monies relating to the claim were
received by the Company shortly after the year end.
The gross cash balance at the year end was £21.7 million (2023: £22.1
million). The average gross cash balance during the year was £21.9 million
(2023: £9.2 million). The strong cash position leaves the Group well placed
to achieve both its short and long-term objectives to maximise returns, while
providing financial security and providing the ability to invest and seek
opportunities for futher diversification.
In 2024 the Group has entered into an agreement with HSBC, the Company's
bankers, for a £6.0 million Revolving Credit Facility (RCF) for 3 years to
provide enhanced flexibility to capitalise on acquisition opportunities should
suitable and appropriate prospects be identified. The facility was
unutilised in the period and the Group remains debt free.
Average staff numbers in 2024 increased 7.5% to 488 following a rise of 12.7%
in 2023, with an overall rise in staff costs of 13.0% year on year, excluding
the cost associated with Share Based Payments (SBP). Industry wide
challenges remain to ensure wage inflation is mitigated and in attracting
sufficient quality resource across all disciplines. At the year end employee
numbers had increased to 520 and it is anticipated that they will remain
broadly consistent throughout 2025.
Increases to the National Minimum Wage (NMW) and Employers National Insurance
(ENI) announced in the October 2024 budget are anticipated to have an
annualised negative impact of £0.5 million on the Group.
The Group continues to maintain credit insurance on its customers where
available at commercial rates. In light of the continued challenging macro
economic environment, combined with increasing costs for fire remediation
costs being incurred by some customers, the financial performance of clients
continues to be impacted. Consequently, the level of insurance in the market
has seen reductions in the limits being underwritten. As a result of the
perceived increased risk in the construction sector, combined with the claim
against the policy in the year relating to ISG, the Company anticipates an
increase to the insurance premium when the policy is subject to renewal later
in 2025.
The Shafton facility continues to provide the Group with opportunity to expand
and diversify its operations, further optimising the current resources within
the control of the Group. During the year the Company capitalised on the
opportunity to employ a number of specialist staff from a bridge and complex
steel structure entity that ceased to trade, to further expand its offering in
this area.
Consolidated Balance Sheet
2024 2023
£'000 £'000
Non current assets 30,442 27,814
Current assets 47,673 53,782
Current liabilities (20,033) (29,116)
Non current liabilities (5,059) (4,642)
Total equity 53,023 47,838
As part of the capital investment programme across the Group, two further
significant capital expenditure projects were completed. The first related
to the installation of a laser fittings machine at its Wombwell facility to
replace two aged plasma machines. Secondly a cope / drill machine was
installed at the Shafton facility, both projects having the impact of
increasing the capabilities and capacity of the Group, while ensuring that
Billington remains at the forefront of technological advancements. The
Group's five year capital investment strategy relating to the upgrading and
enhancement of the principal pieces of equipment is yielding positive results
and with one year remaining will see the replacement cycle principally
complete during 2025.
In order to increase the Company's ability to deliver complex and heavy
structures, works commenced on the construction of a new facility on the
Shafton site. The new facility will have the ability to manufacture
structures up to 70 tonnes and will enable the Company to deliver the heaviest
of structures. The project cost is circa £1.7 million and is anticipated to
be operational in June 2025.
With the confirmed permanent extension of enhanced capital allowances, the
timing of the capital expenditure strategy will allow the Company to maximise
the benefit related to the claiming of its capital allowances associated with
its extensive investments in new plant and machinery.
Within non-current assets, property, plant and equipment increased by £2.6
million, represented by capital additions of £5.0 million, depreciation
charges of £2.3 million and net disposals of £0.1 million.
The defined benefit pension scheme has performed well in the period against a
backdrop of continued difficult equity and bond markets. At the year end, a
surplus of £1.9 million, along with a corresponding deferred tax liability of
£0.5 million, has resulted in a net recognised surplus of £1.4 million
(2023: £1.4 million). The scheme was closed to future accrual in 2011.
Billington as the employer has had dialogue with the scheme trustees during
the period and has agreed, in principal, to proceed with progressing a buy out
of the scheme's liabilities with a specialist insurer. The removal of the
scheme and its associated liabilities from the Company balance sheet is
considered in the collective interests of the members and employer, with any
surplus funds anticipated to be returned to Billington.
The net deferred tax liability at the year end was £3.6 million (2023: £3.0
million), being a deferred tax liability of £1.7 million (2023: £1.1
million) related to temporary timing differences, combined with a deferred tax
liability of £0.5 million (2023: £0.5 million) related to the defined
benefit pension scheme surplus and £1.5 million related to the revaluation of
land and buildings (2023: £1.5 million).
The decrease of £6.1 million in current assets included an increase of £0.6
million in inventories, an increase of £0.3 million in contract work in
progress, a decrease of £7.0 million in trade and other receivables, an
increase in current tax receivable of £0.3 million and a decrease in the
gross cash balance of £0.4 million.
Retention balances, contained within trade and other receivables outstanding
at the year end, were £5.2 million (2023: £4.8 million). It is anticipated
that £4.1 million will be received within one year and £1.1 million in
greater than one year. Disappointingly, main contractor clients are being
more insistent upon the holding of cash retentions rather than the taking of
an appropriate retention bond in order to maintain and preserve their cash
resources. The Company continues to work with the wider construction
industry to abolish cash retentions.
Trade and other payables decreased by £8.6 million. Within this, trade
payables and accruals decreased by £4.5 million and £0.3 million
respectively, with contract liabilities and losses decreasing £3.8 million
and social security and other taxes and other payables decreasing by £0.1
million.
Total equity increased by £5.2 million in the year to £53.0 million. The
financial position of the Group at the end of the year remains robust and
provides a strong platform to drive shareholder value.
Consolidated Cash Flow Statement
2024 2023
£'000 £'000
Group profit after tax 8,272 10,325
Depreciation 2,340 2,215
Capital expenditure (5,006) (2,899)
Investment property movement - (120)
Tax paid (2,697) (2,591)
Tax per income statement 2,542 3,063
(Increase)/decrease in working capital (2,630) 1,853
Dividends (4,189) (1,900)
Repayment of bank and other loans - (750)
Share based payment charge 1,066 939
Others (83) 315
Net cash (outflow)/inflow (385) 10,450
Cash and cash equivalents at beginning of year 22,084 11,634
Cash and cash equivalents at end of year 21,699 22,084
Dividends of £4.2 million were paid in the year.
A dividend has been proposed in respect of the 2024 financial year of 25.0
pence per share (£3.3 million), covered 2.65 times earnings, and will be paid
to shareholders in July 2025 upon approval at the AGM. The dividend in 2024
was split as an ordinary dividend of 20.0 pence per share and an exceptional
dividend of 13.0 pence per share, reflective of the outstanding performance of
the Group in 2023.
The Group remains committed to treating its suppliers and subcontractors
fairly and to paying them in line with their agreed payment terms. It is the
Group's policy not to withhold retentions from members of its valued supply
chain.
Working capital at the year end was:
2024 2023
£'000 £'000
Inventories and contract work in progress 9,088 8,116
Trade and other receivables 16,598 23,582
Trade and other payables (19,869) (28,481)
Working capital at end of year 5,817 3,217
Cash balances at the year end totalled £21.7 million and there were no
borrowings outstanding (2023: £nil), representing a net cash position of
£21.7 million (2023: £22.1 million).
The strong cash position also provides the Group with financial stability and
allows investment in capital assets to improve operating margins and provide a
comprehensive service to its clients.
2025 will see the conclusion of the programme of capital additions, primarily
within the Structural Steel division of the Group. The additional capital
expenditure will support both an increase in the range of services the Company
can offer, as well as replacing a number of aged machines with more efficient
models. Investment in the latest technologies will ensure Billington can
deliver the most challenging projects, efficiently, for its clients.
Pension Scheme
2024 2023
£'000 £'000
Scheme assets 6,150 6,611
Scheme liabilities (4,268) (4,740)
Surplus 1,882 1,871
Other finance income 5 37
Contributions to defined benefit scheme - -
To limit the Group's exposure to future potential pension liabilities the
decision was taken to close the remaining Billington defined benefit pension
scheme to future accrual from 1 July 2011. The scheme's liabilities have
moved broadly in line with the scheme's assets. The assets are primarily
invested in UK Government bonds and the scheme continues to remain in a strong
surplus position with an unlikely requirement that funds will be required from
the Company in the foreseeable future.
The scheme's triennial valuation for the period ended 31 March 2023 was
completed on 16 November 2023. The position of the scheme as at the date of
the valuation was an asset position of £6,834,000 and a liability position of
£5,006,000, resulting in a surplus of £1,828,000. The assets of the scheme
are principally invested in UK government bonds to protect and manage the
strong surplus position of the scheme in the long term. The next actuarial
valuation is due to be completed as at 31 March 2026.
Employee Share Option Trust ("ESOT")
The Group operates an ESOT to allow employees to share in the future continued
success of the Group, promote productivity and provide further incentives to
recruit and retain employees. Options are issued based on seniority and
length of service across all parts of the Group.
A Long-Term Incentive Plan (LTIP) was introduced across the Group to assist in
the remuneration of management and further align the interests of senior
management and shareholders. Awards are made subject to achieving
progressive Group performance metrics over a three-year period.
At the year end there were 890,086 (2023: 928,718) share options outstanding
at an average exercise price of £0.01 (2023: £0.05) per share. Share
options are in HMRC approved and unapproved schemes.
The 2024 charge included within the accounts in respect of options in issue is
£1.1 million (2023: £0.9 million).
Shortly after the year end 400,000 new shares, representing 3.1 per cent of
the issued share capital were issued to the ESOT at their nominal value of 10
pence per share, to allow for the future vesting of share options.
Trevor Taylor
Chief Financial Officer
15 April 2025
Consolidated income statement for the year ended 31 December 2024
2024 2023
£'000 £'000
Revenue 113,061 132,495
Raw materials and consumables (60,468) (78,182)
Other external charges (6,685) (6,053)
Staff costs (28,849) (25,536)
Depreciation (2,340) (2,215)
Other operating charges (4,698) (7,263)
(103,040) (119,249)
Operating profit 10,021 13,246
Finance income 868 224
Finance costs (75) (82)
Net finance income 793 142
Profit before tax 10,814 13,388
Tax (2,542) (3,063)
Profit for the year 8,272 10,325
Profit for the year attributable to equity holders of the parent company 8,272 10,325
Basic earnings per share 66.2 p 84.4 p
Diluted earnings per share 61.9 p 79.3 p
All results arose from continuing operations.
Consolidated statement of comprehensive income for the year ended 31 December
2024
2024 2023
£'000 £'000
Profit for the year 8,272 10,325
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Revaluation of land and buildings - 5,868
Movement on deferred tax relating to revaluation - (1,467)
Remeasurement of net defined benefit surplus 6 (340)
Movement on deferred tax relating to pension surplus (1) 85
5 4,146
Items that will be reclassified subsequently to profit or loss
Gain/(loss)on foreign currency forward contracts 31 (31)
31 (31)
Other comprehensive income, net of tax 36 4,115
Total comprehensive income for the year attributable to equity holders of the 8,308 14,440
parent company
Consolidated statement of financial position as at 31 December 2024
2024 2023
£'000 £'000 £'000 £'000
Assets
Non current assets
Property, plant and equipment 27,946 25,329
Investment property 614 614
Pension asset 1,882 1,871
Total non current assets 30,442 27,814
Current assets
Inventories 2,202 1,576
Contract work in progress 6,886 6,540
Trade and other receivables 16,598 23,582
Current tax receivable 288 -
Cash and cash equivalents 21,699 22,084
Total current assets 47,673 53,782
Total assets 78,115 81,596
Liabilities
Current liabilities
Trade and other payables 19,869 28,481
Lease liabilities 164 157
Current tax payable - 447
Derivative financial instruments - 31
Total current liabilities 20,033 29,116
Non current liabilities
Lease liabilities 1,477 1,641
Deferred tax liabilities 3,582 3,001
Total non current liabilities 5,059 4,642
Total liabilities 25,092 33,758
Net assets 53,023 47,838
Equity
Share capital 1,293 1,293
Share premium 1,864 1,864
Capital redemption reserve 132 132
Other components of equity 4,194 3,847
Retained earnings 45,540 40,702
Total equity 53,023 47,838
Consolidated statement of changes in equity for the year ended 31 December
2024
Share capital Share premium Capital redemption reserve Other components of equity Retained earnings Total
equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2023 1,293 1,864 132 (761) 31,819 34,347
Transactions with owners
Dividends - - - - (1,898) (1,898)
Credit relating to equity-settled share based payments - - - - 939 939
ESOT movement in year - - - 238 (228) 10
Transactions with owners - - - 238 (1,187) (949)
Profit for the financial year - - - - 10,325 10,325
Other comprehensive income
Actuarial losses recognised in the pension scheme - - - - (340) (340)
Deferred tax on pension - - - - 85 85
Financial instruments - - - (31) - (31)
Revaluation of land and buildings - - - 5,868 - 5,868
Deferred tax on revaluation - - - (1,467) - (1,467)
Total comprehensive income for the year - - - 4,370 10,070 14,440
At 31 December 2023 1,293 1,864 132 3,847 40,702 47,838
Share capital Share premium Capital redemption reserve Other components of equity Retained earnings Total
equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 1,293 1,864 132 3,847 40,702 47,838
Transactions with owners
Dividends - - - - (4,189) (4,189)
Credit relating to equity-settled share based payments - - - - 1,066 1,066
ESOT movement in year - - - 316 (316) -
Transactions with owners - - - 316 (3,439) (3,123)
Profit for the financial year - - - - 8,272 8,272
Other comprehensive income
Actuarial losses recognised in the pension scheme - - - - 6 6
Deferred tax on pension - - - - (1) (1)
Financial instruments - - - 31 - 31
Total comprehensive income for the year - - - 31 8,277 8,308
At 31 December 2024 1,293 1,864 132 4,194 45,540 53,023
The Group retained earnings reserve includes a surplus of £1,411,000 (2023 -
£1,403,000) relating to the net pension surplus.
Consolidated cash flow statement for the year ended 31 December 2024
2023
2024
£'000 £'000
Cash flows from operating activities
Group profit after tax 8,272 10,325
Taxation paid (2,697) (2,591)
Interest received 863 187
Depreciation on property, plant and equipment 2,340 2,215
Fair value adjustment of investment properties - (30)
Impairment of property, plant and equipment - 372
Share based payment charge 1,066 939
Profit on sale of property, plant and equipment (253) (243)
Taxation charge recognised in income statement 2,542 3,063
Net finance income (793) (142)
(Increase)/decrease in inventories (626) 1,758
(Increase)/decrease in contract work in progress (346) 7,008
Decrease/(increase) in trade and other receivables 6,984 (13,324)
(Decrease)/increase in trade and other payables (8,642) 6,411
Net cash flow from operating activities 8,710 15,948
Cash flows from investing activities
Purchase of property, plant and equipment (5,006) (2,899)
Purchase of investment property - (120)
Proceeds from sale of property, plant and equipment 332 386
Net cash flow from investing activities (4,674) (2,633)
Cash flows from financing activities
Interest paid (75) (82)
Repayment of bank and other loans - (750)
Capital element of leasing payments (157) (143)
Dividends paid 6 (4,189) (1,900)
Employee Share Ownership Plan share sales - 10
Net cash flow from financing activities (4,421) (2,865)
Net (decrease)/increase in cash and cash equivalents (385) 10,450
Cash and cash equivalents at beginning of year 22,084 11,634
Total cash and cash equivalents 21,699 22,084
Notes forming part of the Group financial statements for the year ended 31
December 2024
1. Basis of preparation
The financial information in this preliminary announcement has been prepared
in accordance with accounting policies which are based on UK-adopted
international accounting standards (IFRS) and in issue and in effect at 31
December 2024.
2. Accounts
The summary accounts set out above do not constitute statutory accounts as
defined by Section 434 of the UK Companies Act 2006. The consolidated balance
sheet at 31 December 2024, the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in
equity and the consolidated cash flow statement for the year then ended have
been extracted from the Group's 2024 statutory financial statements upon which
the auditor's opinion is unqualified and did not contain a statement under
either sections 498(2) or 498(3) of the Companies Act 2006. The audit report
for the year ended 31 December 2023 did not contain statements under sections
498(2) or 498(3) of the Companies Act 2006. The statutory financial statements
for the year ended 31 December 2023 have been delivered to the Registrar of
Companies. The 31 December 2024 accounts were approved by the directors on 15
April 2025, but have not yet been delivered to the Registrar of Companies.
3. Earnings per share
2024 2023
Basic earnings per share 66.2 p 84.4 p
Diluted earnings per share 61.9 p 79.3 p
Basic earnings per share is calculated by dividing the profit for the year of
£8,272,000 (2023: £10,325,000) by 12,498,567 (2023: 12,232,690) fully paid
ordinary shares, being the weighted average number of ordinary shares in issue
during the year, excluding those held in the ESOT.
Diluted earnings per share is calculated by dividing the profit for the year
of £8,272,000 (2023: £10,325,000) by 13,353,120 (2023: 13,014,903) fully
paid ordinary shares, being the weighted average number of ordinary shares in
issue during the year, excluding those held in the ESOT, plus shares deemed to
be issued for no consideration in respect of share-based payments of 854,553
(2023: 782,213).
4. Reports, Accounts & AGM
The Annual Report and Accounts for the year ended 31 December 2024 will be
available on the Company's website www.billington-holdings.plc.uk
(http://www.billington-holdings.plc.uk) on 18 April 2025.
The Notice of Annual General Meeting and Annual Report and Accounts will be
sent to Shareholders and be available on the Company's website
www.billington-holdings.plc.uk (http://www.billington-holdings.plc.uk) on 7
May 2025.
The Annual General Meeting will be held on 3 June 2025 at 14.00 at Billington
Holdings Plc, Steel House, Barnsley Road, Wombwell, Barnsley, S73 8DS.
5.Segmental Information
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,
Peter Marshall Steel Stairs Limited and Specialist Protective Coatings
Limited. 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. Finance income and finance
cost are not allocated to segments, because financing and cash management
activities are the responsibility of the group's central treasury function.
All assets of the Group reside in the UK.
31 December 2024 Structural Steelwork Safety Other Total
£'000
Solutions
£'000
£'000
£'000
Revenue
From external customers 100,951 12,100 10 113,061
From other segments 105 528 - 633
Segment revenues 101,056 12,628 10 113,694
Elimination of segment revenues (633)
Revenue 113,061
Raw materials and consumables (56,044) (4,424) - (60,468)
Other external charges (4,616) (2,069) - (6,685)
Staff costs (23,000) (2,258) (3,591) (28,849)
Depreciation (1,324) (569) (447) (2,340)
Other operating (charges)/income (6,637) (918) 2,857 (4,698)
Segment operating profit/(loss) 9,435 2,390 (1,171) 10,021
Additions to non-current assets 3,329 883 824 5,036
31 December 2023 Structural Steelwork Safety Other Total
£'000
Solutions
£'000
£'000
£'000
Revenue
From external customers 121,545 10,949 1 132,495
From other segments 38 541 - 579
Segment revenues 121,583 11,490 1 133,074
Elimination of segment revenues (579)
Revenue 132,495
Raw materials and consumables (74,046) (4,136) - (78,182)
Other external charges (4,152) (1,901) - (6,053)
Staff costs (20,118) (2,179) (3,239) (25,536)
Depreciation (1,233) (593) (389) (2,215)
Other operating (charges)/income (9,310) (1,095) 3,142 (7,263)
Segment operating profit/(loss) 12,724 1,586 (485) 13,246
Additions to non-current assets 1,636 863 428 2,927
6. Dividend
A final dividend in respect of 2023 of 33.0 pence (£4,189,000) per ordinary
share was paid on 3 July 2024. No interim dividends were paid in 2024. A final
dividend has been proposed in respect of 2024 of 25.0 pence (£3,244,000) per
ordinary share. As the distribution of dividends by Billington Holdings Plc
requires approval at the shareholders' meeting, no liability in this respect
is recognised in the consolidated financial statements.
7. Going Concern
The consolidated financial statements have been prepared on a going concern
basis. The Directors have taken note of the guidance issued by the Financial
Reporting Council on Going Concern Assessments in determining that this is the
appropriate basis of preparation of the financial statements and have
considered a number of factors.
The financial position of the Group and its positive trading performance in
2023 and 2024 are detailed in the Financial Review and they demonstrate the
robust position of the Group heading into 2025.
The Group has a gross cash balance of £21.7 million as at 31 December 2024
with no long-term borrowings or commitments.
During the year the Group entered into an agreement with HSBC, the Company's
bankers' for a £6.0 million Revolving Credit Facility for 3 years to March
2027, which provides further funding and headroom security.
The Group has maintained its strong cash position notwithstanding the
continued capital expenditure programme currently being completed. The capital
expenditure programme across the Group is part of the Group's operational
improvement programme that is, and will continue to, yield production
efficiency gains in the short to medium term.
The Group has secured a number of significant contracts in 2024 for delivery
in 2025 and 2026 and has a substantial level of secured productive hours.
The Directors have reviewed the Group's forecasts and projections for the
period to April 2026, including sensitivity analysis, to assess the Group's
resilience to potential adverse outcomes including a highly pessimistic
'severe but plausible' scenario. This scenario is based on significantly
reduced trading performance for some of the entities within the Group and no
further orders being received for the Group's primary trading entity.
Furthermore, significant contract deterioration from that anticipated at the
period end date has been assumed in the pessimistic scenario. Notwithstanding
the stress tests that have been completed on the forecasts and projections the
Group projects that it would have sufficient resources to continue trading
without the requirement for any additional funding requirements.
The Directors expect that the Group has sufficient resources to enable it to
continue to adopt the going concern basis in preparing the financial
statements.
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