Billington is not yet ready to reveal the identity of its new partner, saying only that it is “a similar sized steelwork contractor”.
Chief executive Steve Fareham said that BS2 would provide “an alternative major competitor to the UK market place”.
He said: “We expect our commitment to develop a joint venture to yield real opportunities and positive interest has been expressed from developers and contractors alike in this sector.”
After a difficult 2010, which saw a heavy fall in the company’s revenues and profits, Billington is keen to pursue any opportunities available and high-rise building in the capital is seen as a rare bright spot in the market.
Billington reported a 26% fall in revenue for 2010 to £42.3m (2009: £57.2m). Profit before tax on continuing operations fell 74% to £1.4m (2009: £5.3m).
The amount of steelwork supplied and erected in 2010 was approximately 20,000t, compared to 21,000t in 2009, which in a shrinking market represented a growth in market share, the company said.
Executive chairman Peter Hems said: "2010 was another challenging year for the construction and structural steelwork industry. Despite this we have remained profitable and ended the year with a net cash balance of £4.9m.
"The disposal of our loss making non-core assets, Dosco and Hollybank last year, allowed us to focus on our main business of structural steel and related building safety systems, which we believe leaves us better placed for recovery."
Mr Fareham added: “Our robust financial and operating performance against the background of an exceptionally difficult trading environment has, we believe, confirmed our strong position in the UK structural steelwork sector. Pleasingly, we have succeeded in growing our market share not only in structural steelwork but particularly in the markets served by our innovative safety solutions company, where Easi-edge and Hoard-it [producers of steel barrier edge protection and site security hoarding respectively] have an ever increasing and strong customer base. The group forward order book has increased recently and is now as good as we have enjoyed for over three years, although margins remain disappointing.
“We have seen a number of major and minor competitors removed from the sector either voluntarily or as a result of financial collapse. Recent and forecast increases in raw material prices will add further pressures and I have no doubt that further consolidation will be inevitable. Unsustainable bids below real cost remain a threat to many. However, I now believe we have reached the bottom of the cycle.
"I am under no illusion as to the difficulties we face in 2011, but I believe with the support of a strong and focused management team, an excellent workforce and a robust balance sheet, Billington is in good shape to weather this storm and emerge as an even stronger entity."
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