REG - Billington Holdings - Trading Update

Billington HoldingsAnnouncement

11/12/2024 07:00

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RNS Number : 5761P  Billington Holdings PLC  11 December 2024

 

11 December 2024

Billington Holdings plc

 

("Billington", the "Group" or the "Company")

 

Trading Update

 

Strong trading performance across the Group

Results for FY24 now expected to be ahead of current market expectations

 

Billington Holdings plc (AIM: BILN), one of the UK's leading structural steel
and construction safety solutions specialists, is pleased to provide an update
on current trading.

As outlined in the Company's interim results for the six months ended 30 June
2024, announced on 17 September 2024, the Group delivered a strong performance
across all its business units in the first half of the year. Continued strong
delivery in the second half now results in Group profit before tax for the
year ending 31 December 2024 ("FY24") is expected to be ahead of current
market expectations.

The Group continues to benefit from improved manufacturing efficiencies and
from the deployment of its capital investment programme across all the Group's
production facilities. The construction of a new building is being undertaken
at the Group's Shafton facility to provide extra capacity for Tubecon, as well
as enabling it to undertake additional large and complex fabrications. This is
expected to be fully operational in mid-2025. The Billington Structures
business located at Shafton has also recently implemented an additional shift,
and taken on additional resource, to service the volume of work it has
secured.

On 20 September 2024 ISG Construction Holdings Ltd ("ISG") was placed into
administration. Billington has historically traded with various ISG trading
entities, delivering a number of high-profile projects. The Group has received
an interim payment from its credit insurer and subject to formal acceptance by
the insurer of an independent assessment of the remaining claim, the financial
impact on Billington is expected to be materially restricted to the excess on
the Group's credit insurance. This outcome is incorporated in the Company's
updated market guidance. At the time of administration, all contracts with
ISG, and its trading subsidiaries, were substantially complete.

The Group has a strong order book spanning multiple market sectors, and has
been successful in securing a number of significant, good quality contracts
for 2025 and into 2026, particularly in sectors that require more complex
solutions such as energy from waste, high-tech manufacturing and data centres.
Whilst remaining mindful of ongoing challenging market conditions, Billington
continues to trade well and is confident of delivering upon its market
expectations for 2025.

The Company expects to release its results for the year ended 31 December 2024
in April 2025.

Mark Smith, Chief Executive Officer of Billington, commented:

"I am pleased that the strong performance seen in the first half of the year
has continued. 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."

For further information please contact:

 Billington Holdings Plc                             Tel: 01226 340 666

 Mark Smith, Chief Executive Officer

 Trevor Taylor, Chief Financial Officer

 Cavendish Capital Markets Ltd - Nomad and Broker    Tel: 020 7220 0500

 Ed Frisby / Trisyia Jamaludin - Corporate Finance

 Andrew Burdis - ECM

 IFC Advisory Limited                                Tel: 020 3934 6630

 Tim Metcalfe                                        billington@investor-focus.co.uk

 Graham Herring

 Zach Cohen

 

About Billington Holdings plc

 

Billington Holdings plc (AIM: BILN), one of the UK's leading structural steel
and construction safety solutions specialists, is a UK based Group of
companies focused on structural steel and engineering activities throughout
the UK and European markets. Group companies pride themselves on the provision
of high technical and professional standards of service to niche markets with
emphasis on building strong, trusted and long-standing partnerships with all
of our clients. https://billington-holdings.plc.uk/
(https://billington-holdings.plc.uk/)

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

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