Billington : Interim Results for the Six Months Ended 30 June 2022

Interim Results for the Six Months Ended 30 June 2022

September 2022

Presentation Team

Noma 4 Angel Square, Manchester

Mark Smith

Chief Executive Officer

Trevor Taylor

Chief Financial Officer

Executive Summary

"Billington is a leading structural steelwork specialist"

• Turnover and profit has increased in the period as the Group recovered from the impact of the pandemic at the start of the year.
• In line with the Group's strategy to improve efficiencies and operating margins along with the establishment of the Group's specialist treatment operation, positive progress has been made.
• Strong cash management and utilisation of resources to enhance margins and protect material supply.
• Strategic capital investment plan progressed in the year.
• Post period end the Group has secured a good volume of work in buoyant market sectors at improved margins, upgrading expectations for FY22 and FY23.

Thorpe Park, Leeds

Financial Highlights

• A number of challenging legacy contracts carried over from 2021 into 2022 have been resolved.
• Capital investment programmes ongoing, further utilising the super-deduction scheme.
• The operational and inflationary pressures noted as a result of the Ukraine conflict have been largely mitigated. Cash resources have been temporarily utilised to enhance and protect margins on contracts.
• Gross (net) cash balance of £5.31m (£4.43m) at the period end. Since the period end the gross cash balance has returned to a more normalised level of £11.35m at 26 September 2022.
• Record activity levels in Hoard-it with turnover growth of 55% from H1 2021.
• Fixed price contracts for the Group's energy requirements remain in place until 2023, to date partially mitigating the direct impact to the Group in the short term.
• Main contractors' financial stability under constant review, with a number of insolvencies noted in the period.

Wellington Place, Leeds

Income Statement

£'000	Six months to	Six months to
30 June 2022	30 June 2021
Revenue	46,189	37,733
Total costs (excluding depreciation)	43,840	36,004
Adjusted EBITDA*	2,522	1,729
EBITDA	2,349	1,729
Depreciation	1,023	969
Group operating profit	1,326	760
Net finance (expense)/income	(27)	3
Adjusted profit before tax*	1,472	763
Profit before tax	1,299	763
Taxation	(247)	(143)
Profit from continuing operations	1,052	618
Adjusted earnings per share*	10.1p	5.1p
Earnings per share	8.7p	5.1p
* Before share based payments

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