Billington set to beat full-year market expectations
By Josh White
Date: Wednesday 11 Dec 2024
(Sharecast News) - Structural steel and construction safety solutions specialist Billington said in an update on Wednesday that it expects its profit before tax for the year ending 31 December to exceed current market expectations.
The AIM-traded company cited strong trading performance across all business units, underpinned by improved manufacturing efficiencies and robust demand for its services.
It reported continued momentum in the second half, building on the strong performance highlighted in its interim results.
Capital investment initiatives, including the construction of a new facility at its Shafton site, were expected to enhance production capacity for its Tubecon business and enable larger, more complex fabrications.
The facility was slated for completion in mid-2025.
In addition, the Billington Structures division had expanded its operations with an additional shift and new hires to manage increased project volumes.
The board said the financial impact of ISG Construction entering administration in September had been largely mitigated.
Billington secured an interim payment from its credit insurer, and anticipated minimal exposure beyond the insurance excess.
The group noted that all contracts with ISG were nearly complete at the time of administration, with the outcome factored into its updated guidance.
Billington said its order book remained strong, with significant contracts secured for 2025 and 2026 in high-growth sectors such as energy from waste, high-tech manufacturing, and data centres.
The company said it was optimistic about its prospects for 2025 despite broader market challenges.
"I am pleased that the strong performance seen in the first half of the year has continued," said chief executive officer Mark Smith.
"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."
Billington said it would release its full-year results for 2024 in April.
At 0811 GMT, shares in Billington Holdings were up 12.86% at 474p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN