Billington Holdings, a UK structural steel and construction safety solutions specialist, has reported its financial performance for the first half (H1) of 2024.
The company saw a marginal increase in profit before tax to £4.64m ($6.12m), up from £4.60m in the same period last year, despite a decrease in group revenue by 3.7% to £57.90m.
This decline in revenue is attributed to the timing of deliveries for several major contracts and a decrease in associated revenue and certain key input costs.
The company's basic earnings per share (EPS) dropped by 4.2% to 27.6p, with diluted EPS also seeing a decrease of 4.1% to 25.9p.
Billington said it maintains a strong cash balance, with cash and cash equivalents reported at £21.87m as of 30 June 2024.
Inventories and contract work in progress fell to £15.32m while trade and other receivables have risen to £18.38m, primarily due to the timing of some larger contracts.
The group is currently in the fourth year of a five-year capital investment and modernisation programme.
The company has forecasted capital expenditure of approximately £3.5m for both 2024 and 2025.
Billington CEO Mark Smith said: "The first half of 2024 saw Billington continue to deliver a resilient performance across all its business units. The group has been successful in securing a number of significant contracts, with further opportunities expected to be realised in the short term, providing confidence for the delivery of a strong performance in H2 2024 and in 2025.
"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."
Despite a softer market in 2024 compared to the previous year, the company said it has secured large contracts and maintains a strong pipeline of opportunities. This positions Billington to potentially exceed current market expectations for full-year 2024 profits.
The group is debt free and has a robust cash balance, further supported by a £6.0m revolving credit facility with HSBC for potential acquisitions.
