Billington results set to beat forecasts thanks to a strong first half
STRUCTURAL STEEL firm Billington Holdings said results for 2016 are likely to be significantly ahead of current market expectations following an improvement in the first half of the year.
The Barnsley-based firm said its order book has continued to strengthen, providing good visibility beyond the end of the current financial year.
It added that good early progress has been made at Shafton Steel following the acquisition of the site last December.
Billington reported its strongest annual results in five years in March and decided to reward shareholders with a 100 per cent increase in its dividend.
The firm, which supplied the steel for the Royal Shakespeare Company’s award-winning Stratford-upon-Avon theatre, is busy working on a number of major projects such as a new distribution centre for Next in Doncaster and a number of high-rise commercial properties at Wellington Place in Leeds.
The group said revenue rose 26 per cent to £57m in the year to December 31 while pre-tax profits jumped 63 per cent to £3.1m.
CEO Mark Smith said the group has been able to sell other services alongside its big steel contracts.
“We are cross-selling across the group so we are offering easi-edge and stair solutions when we are selling the steel work,” he said.
He said the firm’s expansion plans have progressed significantly following last year’s £5m purchase of a new factory in Shafton, south Yorkshire.
Billington said the acquisition has significantly increased the output of its structural steelwork divisions and it is recruiting a skilled workforce.
“Although the industry continues to recover, the market remains competitive,” said Mr Smith.
“The dividend of 6p is a result of Billington’s ability to deliver quality results to both clients and shareholders.”