Readers will already know just how much I like this quality Barnsley-based business.
It is a leading steel structures company that I have followed for years.
The group is capitalised at just £62m, its shares, which were up to 600p in May this year, are now trading at only 505p.
In April, when delivering its 2023 Final Results, the group stated that it had secured a number of significant contracts for 2024, and beyond, and that it was well placed to take advantage of the wide-ranging further opportunities within its strong pipeline.
Its Order Book was boosted in March this year by some £90m, with contracts to be delivered over the coming 18 months.
CEO Mark Smith stated that:
"2023 was an exceptional year for Billington, with an excellent trading performance across the Group, despite continuing macroeconomic challenges and against the backdrop of demand for structural steel in the UK remaining at a similar level to 2022.
I believe Billington is increasingly being seen as the steel work contractor of choice and the growth in Billington's market share in 2023 is particularly noteworthy.
Whilst there inevitably remain further challenges ahead and market uncertainties are likely to remain for some time, the Group has made significant investments for the future and currently has a record order book.
I am therefore confident that with our strong balance sheet and order book Billington will continue to perform well and in line with current market expectations."
Tomorrow morning the company, which is also involved in construction safety solutions, will issue its Interim Results for the six months to end-June.
Analyst David Buxton at Cavendish Capital Markets has a 610p Price Objective on the group’s shares.
For the current year, to end-December, he estimates revenues of £125.0m and adjusted pre-tax profits of £8.5m, generating earnings of 52.1p and paying a 20.0p dividend per share.
For 2025, his figures suggest £135.0m in sales, £9.5m in profits, 55.3p per share in earnings, and a 21.0p dividend.
Times have been very challenging over the last few years however, I now feel that a far less bumpy time is ahead, especially so with the ability to boost still further its record Order Book.
It has to be noted that the group had £22.1m net cash in its balance sheet at the end of last year, which I consider to be yet another positive for this business.
Tomorrow’s results statement will be of great interest.
(Profile 02.04.19 @ 266p set a Target Price of 314.5p*)
(Profile 13.06.22 @ 217.5p set a Target Price of 295p*)
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