11th Dec 2024 12:06
(Alliance News) - Billington Holdings PLC on Wednesday said it expects profit for the full year to be ahead of market expectations and for the effects of historic trading partner ISG Construction Holdings Ltd collapsing to be "materially restricted".
Shares in Billington were up 11% to 466.77 pence in London on Wednesday afternoon.
The Barnsley, England-based structural steel and construction safety specialist said it expects to surpass market expectations for pretax profit in the financial year to the end of December due to "continued strong delivery in the second half".
Pretax profit in the first half was up 0.9% to GBP4.64 million from GBP4.60 million year-on-year. Full-year pretax profit in 2023 was GBP13.4 million.
Billington also gave a positive update on how it is effected by the fallout from when ISG entered administration in September.
"The group has received an interim payment from its credit insurer and subject to formal acceptance by the insurer of an independent assessment of the remaining claim, the financial impact on Billington is expected to be materially restricted to the excess on the group's credit insurance," the company said.
Billington said it has benefitted from "improved manufacturing efficiencies" and from the deployment of capital investment at production facilities.
It also said it has secured "a number of significant, good quality contracts for 2025 and into 2026". This company said it is confident of achieving market expectations for 2025.
Chief Executive Officer Mark Smith said: "I am pleased that the strong performance seen in the first half of the year has continued. We have a solid order book across all of Billington's businesses, and, in addition, a very healthy pipeline of future opportunities that are close to conversion.
"Whilst we remain mindful of the widely publicised, challenging market conditions, I am optimistic that Billington will continue to perform robustly in 2025 and beyond," he said.
By Michael Hennessey, Alliance News reporter
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