In This Article:
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Revenue: GBP113 million for 2024.
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Operating Profit Margin: 8.9%.
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Profit Before Tax (PBT): 8.3%.
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Cash Balance: GBP21.7 million at year-end 2024.
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Net Asset Value Per Share: GBP4.10.
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Return on Capital Employed: 36.8% in 2024.
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Basic Earnings Per Share: 66.2p.
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Dividend: 25p per share, covered 2.6 times by underlying earnings.
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Capital Expenditure: GBP4.6 million in 2024, with GBP5.5 million forecasted for 2025.
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Depreciation Charge: GBP2.3 million in 2024.
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Debt Status: Debt-free with a three-year RCF facility with HSBC.
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Order Book: Near record levels, extending into 2026.
Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Billington Holdings PLC (LSE:BILN) maintained a strong cash balance of GBP21.7 million and remains debt-free, providing financial stability.
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The company achieved an 8.9% operating profit margin, allowing for a competitive dividend of 25p per share.
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A robust order book is in place, securing productivity for 2025 into 2026, with projects in sectors like power, data, and food processing.
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The company is in the final year of a five-year capital investment program, which has enhanced quality, efficiency, and productivity.
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Billington Holdings PLC (LSE:BILN) has a significant surplus in its final salary pension scheme and is moving towards a buyout, potentially returning surplus to the company.
Negative Points
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Revenue decreased due to declining material costs and increased contract complexity, impacting overall turnover.
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The market environment is challenging, with reduced business confidence and construction contracts being deferred or canceled.
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The company's financial performance is expected to be weighted towards the second half of 2025, indicating potential short-term volatility.
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There is pricing pressure in the market, with competitors discounting stock to maintain utilization, affecting margins.
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The structural steelworks sector contracted in 2024, and while growth is forecasted for 2025, it may not gain momentum until later in the year.
Q & A Highlights
Q: Are you seeing increased opportunities in the bridge work market and what output levels are you targeting? A: Mark Smith, CEO, stated that they have several opportunities for delivery at the end of 2025, with a strong pipeline into 2026. They aim for a revenue of at least GBP10 million from this new venture in 2026.
Q: Why did the company choose to increase the dividend by 25% rather than pay a special dividend like last year? A: Trevor Taylor, CFO, explained that the dividend policy is based on a cover of 2.5 to 2.7 times underlying earnings. The current dividend reflects this policy, with a cover of 2.65 times, showing confidence in their secured workload for 2025.