With steel prices back down from their recent peaks and interest rates on a downward trajectory, Billington chief executive Mark Smith is feeling confident.
"I believe the economic environment has begun to stabilise following a challenging period and indications are for the industry to return to regular, steady growth, allowing the group to look forward to the remainder of 2024 and 2025 with optimism and positivity."
While group revenue was down nearly 4% in the six months to 30th June 2024 to £57.9m, (H1 2023: £60.1m), 2023 had been a record half-year for the company. This year’s dip in revenue was attributed to the timing of deliveries on some larger contracts.
Profit before tax for the period improved marginally to £4.64m (H1 2023: £4.60m).
Mark Smith said: “The first half of 2024 was a strong performance by the group, across all its business units. The comparative period in 2023 was a record performance by the Group and it is pleasing that similar levels of revenue…were achieved.
“The group has been successful in securing a number of significant contracts and has a strong order book spanning multiple market sectors. The programmed delivery of a number of these contracts is such that the group is expecting a continued strong financial performance in the second half of the current financial year.
“Whilst we remain mindful of the continuing challenging macroeconomic environment and subdued market this year, we have increased our share of the market. The economic outlook, moving into 2025, is starting to show signs of optimism, with the current downward trajectory of interest rates expected to continue and industry consumption forecast to return to regular growth.”
A highlight of the year so far has been Billington Structures – the structural steelwork business that it is the biggest part of the group – winning its biggest ever contract, on the North London Heat & Power (NLHPP) project Acciona.
“Billington has built a strong position in the energy from waste sector and is well positioned to win further business in what is a complex market with reduced competition,” Smith said.
He said that Billington Structures’ order book was at record levels at the half-year point and the business was “well placed for a strong performance in the second half of the year and into 2025”.
The fall in steel prices has been good new for both Billington and its customers. Smith said: “During the period the steel price fell to its lowest level since the Covid-19 pandemic and although some price rises have been experienced recently, the price remains below the level seen for some time. Projects have returned to the market as a result of the stabilisation of steel and other building material prices, providing further confidence for the sector as we move into 2025. During the period the group continued to be able to hedge its steel requirements for secured contracts, providing price certainty. The group also enjoyed an increased degree of stability on the supply side and this stability is expected to remain for the foreseeable future.”
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