18th Sep 2018 11:25
LONDON (Alliance News) - Billington Holdings PLC said Tuesday that movements in steel prices and a tightening of profit margins led to 13% drop in first half profit, while also announcing a change of board chair.
The structural steel and construction safety solutions manufacturer said it expects a positive performance in the second half of 2018 due to a strong forward order book and that it intends to meet market expectations for the full year.
"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," said Chief Executive Mark Smith.
For the six months to June-end, Billington recorded pretax profit of GBP1.9 million, down from GBP2.2 million in the year-ago period, on revenue of GBP39.3 million and GBP34.3 million, respectively.
Earnings before interest, taxes, depreciation and amortisation fell 12% to GBP2.5 million. Total operating costs, including raw material and staff costs, increased to GBP37.4 million from GBP32.0 million.
Separately, Billington said that Ian Lawson will replace Peter Hems as non-executive chairman, effective October 1. Hems will remain as non-executive director of the company until end of the current year.
Lawson previously was a director of Kier Group PLC, where he enjoyed a 13-year career and more recently was chief executive officer of Severfield PLC
Billington lifted its dividend 15% to 11.5 pence per share from 10.0p paid a year ago.
Shares in the company were trading 5.5% lower at 260.00p each on Tuesday morning.
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