In This Article:
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Revenue: GBP57.9 million for the 2024 interim period.
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Profit Before Tax (PBT): GBP4.6 million.
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Operating Profit Margin: 7.3%, consistent with 2023.
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Net Asset Value: GBP51.8 million, a record high.
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Cash Balance: GBP21.9 million as of June 2024.
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Dividend: 33p per share paid in July, split into 20p ordinary and 13p exceptional.
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Projected Profit Before Tax for Full Year: GBP9.25 million.
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Capital Expenditure for 2024: Expected between GBP3.5 million to GBP4 million.
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Order Book: Record level as of June 2024, with significant contracts for 2025.
Release Date: September 17, 2024
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) reported a strong turnover of GBP57.9 million and a profit before tax of GBP4.6 million, maintaining a consistent operating profit margin of 7.3% despite subdued trading conditions.
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The company has a robust order book extending into 2025 and 2026, providing a solid foundation for future growth.
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Strategic investments in new technology, such as a high-tech laser fittings machine and a coke drill line, are expected to enhance operational efficiency and capacity.
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The expansion of the Tubecon brand and the acquisition of skilled staff from SH Structures are set to enhance the company's offerings, particularly in bridge structures.
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Billington Holdings PLC (LSE:BILN) maintains a strong cash position with GBP21.9 million, providing flexibility for strategic growth and acquisitions.
Negative Points
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The construction industry remains challenging with macroeconomic uncertainties and suppressed demand, impacting overall market conditions.
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Credit insurance limits have been reduced due to high-profile company failures, increasing financial risk exposure.
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The company faces a competitive market environment, with predictions of a 4.9% contraction in steel demand during 2024.
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Despite a strong order book, the company has guided towards slightly lower EPS forecasts for 2025, indicating potential challenges in maintaining profit growth.
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Integration of SH Structures has faced challenges due to stagnated projects, requiring strategic support to realize its full potential.
Q & A Highlights
Q: What sectors provide the best opportunities for growth and expansion moving forward? A: Mark Smith, CEO, highlighted the energy sector as a strong market due to the government's aim to be a net exporter of energy. The company has a solid reputation in this sector and is currently tendering several projects. Other promising sectors include high-tech manufacturing, defense, and the film industry, with significant projects underway with partners like Warner Brothers.