News blog
Billington Holdings
- BY: Andrew Hore |
- POSTED: 13/09/2011 |
Structural Steel supplier Billington Holdings grew its interim revenues but low margins due to oversupply mean that it has fallen into loss.
Revenues improved from £21.3m to £22.8m in the six months to June 2011. There was an initial contribution from Marshall Steel Stairs. A profit of £1.09m was turned into a loss of £555,000.
Billington has won new contracts but margins are lower than in the past. The company’s facilities are being kept busy by these contracts.
The easi-edge steel barrier edge protection systems and hoard-it hoardings businesses continue to grow and Billington has invested in more barriers to hire out.
Net cash has declined to £2.7m, from £4.9m at the end of 2010, after an increase in work in progress. The interim dividend has been passed. It appears unlikely that a dividend will be paid this year.
House broker WH Ireland forecasts a £1.3m loss for 2011, which is higher than its earlier estimated loss of £900,000.
There are increasing levels of enquiries providing some hope of an upturn. The BS2 joint venture with Bourne Construction should start contributing next year.
At 110p a share, down 10p, Billington is valued at £14.2m. The shares are trading on 19 times prospective 2012 earnings.
Download the September 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2011_24.pdf
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