News blog
Billington Holdings
- BY: Andrew Hore |
- POSTED: 17/05/2010 |
Billington Holdings warns that it won’t be able to repeat 2009’s performance this year.
The structural steel company was still benefiting from older contracts in 2009. Margins on these were much better than Billington can achieve under the current climate.
Revenues from continuing operations fell 5% to £57.2m in 2009 while profits improved from £4.1m to £5.3m.
The disposal of the non-core mining equipment operations led to a loss on disposal of £1.57m. The trading loss was £684,000. These losses are not included in the profit figure.
The structural steel business is still relatively busy even if it is at lower margins. Steel price increases are coming through which won’t help. The revenues of the safety equipment business have held up.
There was cash of £8.49m at the end of 2009. The sale of non-core activities happened after the year end but the underlying cash position is similar to the end of 2009. The disposal meant that the company’s pension deficit has been cut to £200,000. The total dividend payment was reduced from 11.5p a share to 10p a share because of the caution about current trading.
There are opportunities to make acquisitions in the safety equipment side.
At 145p a share, Billington is valued £18.8m.
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