Results for the 12 months ended 31 December 2020 April 2021
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Results for the 12 months ended
31 December 2020
April 2021
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2
Introduction
Landmark, Manchester
• Billington Holdings Plc is a leading UK structural steel and construction safety solutions
specialist.
• The Company is the third largest steel fabricator in the UK.
• The Group has shown good resilience during this unprecedented period.
• Turnover has reduced as a result of contract delays and cancellations combined with a
significant project completed in the prior period.
• Encouraging signs of improved trading in the second half of the year and beyond with larger
opportunities in the pipeline.
• Robust cash management during the period resulting in a strong and consistent balance at the
period end.
• Value added, complimentary products and services continue to be developed.
• Covid-19 business mitigation measures implemented.
• Dividend reinstated in line with previous dividend policy.
3
Group Operating Divisions
Billington Structures Ltd Peter Marshall Steel Stairs Ltd
A nationally recognised and award-winning steelwork A specialist company principally engaged in the design,
contractor, with over 70 years’ experience. Plants in fabrication and installation of highly engineered
Barnsley & Bristol with capability to process over 40,000 steelwork, staircases and balustrade systems.
tonnes of steel per annum.
easi-edge Ltd Tubecon
A leading on-site safety solutions company, providing A division of Billington Structures Ltd, Tubecon is a specialist
products that protect perimeter edges, internal voids, company in complex steel structures. Operates primarily in
roofs, stairs, lift shafts and loading bays. the UK construction and rail infrastructure markets.
hoard-it Ltd Shafton Steel Services
An on-ground, reusable and eco-friendly site hoarding A division of Billington Structures Ltd, Shafton is a state-
system with exceptional sustainability credentials. of-the-art steel processing and profiling facility.
4
Overview
• Capital expenditure projects are now being executed following a period of review
during the pandemic. Further projects are planned for 2021.
• Expansion of the Group’s service offering through continued investment at the
Shafton facility.
• Resilient trading for all Group divisions.
• Established partner of many internet retailers delivering the largest fulfilment
and distribution centres within the UK and Central Europe.
• Strong, consistent gross cash balance at period end.
• The Company continues to manage the impact of the Covid-19 pandemic.
• Good forward pipeline of work into 2021 and beyond.
• Peter Marshalls has secured its largest contract to date shortly after the year end.
• Continued surplus of the Group’s Defined Salary Pension Scheme during a
turbulent period in the equity markets.
• Strong demand noted for industrial warehousing, EfW and data centres.
5
Group Structure
Structural Steel Safety Solutions
6
Investor Relations
London (AIM) Share Price Ordinary Shares in issue (No.) Market Cap. (GBP, millions) Major Shareholders
BILN 342.00p 12,934,327 44.24 Gutenga Investments PCC Ltd 36.4%
as of 08/04/2021 Close Brothers 12.8%
Ocorian Trustees Ltd 6.5%
Otus Capital 7.9%
Ruffer LLP 5.0%
GPIM 5.11%
Advisors
Bankers HSBC Plc
NOMAD and Broker WH Ireland
Auditors Grant Thornton
Share Price Graph – 12 month period (Source: LSE)
Solicitors Walker Morris LLP
7
Board of Directors
Ian Lawson Non-Executive Chairman Stephen Wardell Non-Executive Director
Ian is a fellow of both The Royal Institute of Chartered Surveyors (FRICS) and the Chartered Stephen is a member of the Institute of Chartered Accountants in England & Wales
Institute of Building (FCIOB) and has a wide range of skills and experience from working (ICAEW), having qualified in 1988. He retired from KPMG in 2018 having been a partner
within the construction industry for more than 35 years. Ian’s previous experience includes for nearly 20 years, having held a number of management roles in the firm and was most
being a main Board Director of a tier-1 Principal Contractor where he enjoyed a 13-year recently a Senior Audit Partner working with FTSE 100 and 250 boards in an audit,
career and subsequently spent four years as Chief Executive Officer for a prominent advisory and relationship management capacity.
Steelwork Contractor.
Mark Smith Chief Executive Officer John Gordon Non-Executive Director
Mark has an in-depth knowledge of the construction industry with over 35 years’ John practised as a barrister from 1989 until 1999 when here re-qualified as a solicitor.
experience, driving for growth and profit in competitive markets. John is in private practice as a partner/consultant in Excello Law Solicitors, specialising
Mark joined Billington as COO in June 2014 and subsequently took over as CEO from 1 in commercial and property litigation. He was appointed to the Board in 2007, and his
January 2015. legal-commercial background makes him a valuable member of the team.
Trevor Taylor Chief Financial Officer Alexander Ospelt Non-Executive Director
Alexander Ospelt has been in independent practice as a lawyer since 1997 and is a
A fellow of the Institute of Chartered Accountants in England & Wales (ICAEW) with
Member of the Board of Directors of Legacon Trust and Ospelt and Partner Attorneys at
over 15 years’ wealth of experience in Construction & Financial Services.
Law, Liechtenstein. In addition, he is also a Board Member of a number of other
Trevor joined Billington in 2008 and subsequently became Group Chief Financial Officer companies including Ospelt Holding Anstalt; Bergbahen Malbun AG; Bank Havilland Ltd;
in 2011. Chairman of the Board of Seed X Liechtenstein Ltd; and Chairman of the Board of ONE
Insurance Ltd. Alex was also appointed Honorary Consul of the Kingdom of Belgium in
2017.
8
Structural Steel Market Trend Graph
UK Consumption of Constructional Steelwork - 2000-2023
1,500
1,400
1,300
Tonnes (000's) 1,200
1,100
1,000
900
800
700
600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Tonnes - actual Tonnes - projected
Data Source: BCSA / Steel for Life
9
The Steel Industry
• Chinese steel manufacturing giant Jingye Group has completed its acquisition of British Steel in March 2020.
The deal safeguards around 3,200 jobs and will pave the way for a £1.2bn investment in the business.
• £100m initial investment has now been committed and will finance a new billet caster, a scrap preheating
facility, cranes and a new environmental emission control system.
• No operational impact to date noted during the pandemic in respect of hot rolled steel.
• Continued rising of raw material prices resulting in increasing steel price in the UK.
• Arcelor Mittal continues to service the UK structural steelwork market.
• Barrett Steel has also completed the acquisition of certain British Steel distribution depots.
• Price escalation and shortages of cold rolled steel products is being experienced in 2021.
Li Huiming, Group Chief Executive of Jingye Group, said The business was now on a “more sustainable footing”.
10Steel Manufacture – Raw Material Trends
IRON ORE PRICES HAVE FALLEN SLIGHTLY TO COKE PRICES AT HISTORIC HIGH PRICE LEVELS
$164.4/T AFTER JANUARY’S ALL-TIME HIGH
BOS COSTS AND SCRAP PRICES CONTINUE AT
HIGH LEVELS & GLOBAL SUPPLY REMAINS
DISCLOCATED
SCRAP PRICES HAVE RISEN TO $455/T, AFTER LAST
MONTH’S FALL
11Financial Review for the 12 Months
Ended 31 December 2020
April 2021Highlights
The Glass Works, Barnsley
• Full portfolio of contracts continue to be delivered in line with contractual
obligations not withstanding difficulties experienced with Covid-19
restrictions.
• Excellent performance within the safety solutions division of the Group.
• Resilient performance from all Group divisions.
• Margin pressure continues to be evident throughout the industry.
• Gross (net) cash balance of £15.1m (£13.8m).
• Positive volumes of secured work in the current climate.
• A number of large project opportunities for 2021 and into 2022.
13Results Overview
Earls Gate EFW, Grangemouth
• Record share price of 445p (13 February 2020) prior to impact of Covid-19.
• Areas of diversification have been identified and plans currently being developed.
• Robust financial position of the Group allows opportunities to be capitalised as they
arise.
• Strong cash management provides robustness in current uncertain environment.
• Main contractors’ financial stability under constant review.
• Primary trading customers continue to perform amongst the best in the industry.
• Continued investment and progression in graduate and apprentice programmes to
develop key talent.
• Resilient performance of the Final Salary Pension Scheme during the period.
• Utilisation of the UK Governments Coronavirus Job Retention Scheme (CJRS) in the
period. No further monies to be drawn from the scheme in 2021.
• Benefit anticipated as a result of the announcement by HMRC of the super-deduction
allowance for future investments in 2021 and 2022.
14Five Year Summary
Revenue (£m) Net Assets (£m) Profit Before Tax (PBT) (£m)
120 104.9 35 7
28.1 29.2 5.9
100 30 6
23.5 4.9
73.5 77.3 22 4.4
25 5
80 63.3 66.0 18.8 3.8
20 4
60
15 3
40 1.7
10 2
20 5 1
0 0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Earnings Before Interest, Tax, Depreciation Earnings per Share (EPS) (pence) Average Number of Employees
and Amortisation (EBITDA) (£m) 45 39.8
10 420
40 399
7.8 33.6
35 400
8 6.5 29 379 379
6.1 30 25.4 380
6 5.1 25 360
3.7 20 360
4 340
15 11.3 340
2 10
320
5
0 0 300
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
15Financial Summary
Revenue - £m Profit Before Tax - £m
120 7.0
6.0
100
5.0
80
57.8 3.20
4.0
60 37.9 3.0
2.2
39.2 3.0
33.2 2.1
36.2
40 32.2 1.4
23.8 2.0
20.4
47.1 1.1 2.7
20 39.4 2.2 1.1
34.3 32.8 1.0 1.9
24.6 27.1 1.7 1.7
17.2 21.3 0.5 0.8 0.6
0 - 0.3
2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
1st Half 2nd Half 1st Half 2nd Half
16Financial Summary
12 months to 12 months to
£’000
31 December 2020 31 December 2019
Revenue 65,955 104,911
Total costs (excluding depreciation) 62,385 97,161
EBITDA 3,570 7,750
Depreciation 1,911 1,814
Group operating profit 1,659 5,936
Net finance income/(costs) 8 (5)
Profit before tax 1,667 5,931
Taxation (298) (1,135)
Profit from continuing operations 1,369 4,796
Earnings per share 11.3p 39.8p
17Balance Sheet
£’000 31 December 2020 31 December 2019
Non-Current Assets 16,219 16,456
Current Assets 33,340 33,548
Total Assets 49,559 50,004
Current Liabilities (18,866) (21,724)
Non-Current Liabilities (1,476) (187)
Total Liabilities (20,342) (21,911)
Net Assets 29,217 28,093
18Cash Flow
£’000 31 December 2020 31 December 2019
Profit after tax 1,369 4,796
Net cash flow from operating activities (1,783) 7,182
Net cash flow from investing activities (1,922) (1,410)
Net cash from financing activities (394) (2,023)
Cash at beginning of period 17,856 9,311
Cash at end of period 15,126 17,856
19Forward Order Book
Forward Order Book - Sales to Invoice
£m - Order Book
Feb '12 Aug '12 Feb '13 Aug '13 Feb '14 Aug '14 Feb '15 Jun '15 Mar '16 Aug '16 Dec-16 Mar-17 Jun-17 Dec-17 Mar-18 Jun-18 Dec-18 Mar-19 Jun-19 Dec-19 Mar-20 Jul-20 Sep-20 Dec-20 Mar-21
20Divisional Turnover Breakdown
2020 Divisional Breakdown 2019 Divisional Breakdown
6% 3% 5% 2%
4%
5% 3%
5%
81%
86%
Billington Structures easi-edge Marshall Steel Stairs hoard-it Shafton Billington Structures easi-edge Marshall Steel Stairs hoard-it Shafton
21Divisional Highlights – Billington Structures Ltd
Sandwell Aquatics Centre, Birmingham Castlepoint Car Park, Bournemouth
Recent Projects:
• All England Lawn Tennis Club, Wimbledon – Willmott Dixon
Construction
• Project Einstein, Peterborough – TSL Projects Ltd
• Sandwell Aquatics Centre, Smethwick – Wates Construction
All England Lawn Tennis Club, Wimbledon
• Castlepoint Car Park, Bournemouth - Kier Infrastructure &
Overseas Ltd
• The Glass Works, Barnsley – Henry Boot Construction
• Magna Park, Lutterworth – TSL Group
• Amazon Van Park, Hull – TSL Projects Ltd
22Divisional Highlights – Peter Marshall Steel Stairs Ltd
Old Granada Studios, Manchester Amazon Fulfilment Centre, Swindon
Recent Projects:
• Virtus 9, Uxbridge – Mercury Engineering
• Old Granada Studios, Manchester – Bowmer & Kirkland Ltd
• Battersea Power Station – William Hare
• Ocado Distribution Centres, Andover, Avonmouth & Purfleet – Virtus 9, Uxbridge
J&D Pierce (Contracts) Ltd
• Amazon Fulfilment Centre, Swindon – Severfield Steel Structures
• STEAMhouse 2, Birmingham - Bowmer & Kirkland
• Project Gazelle, Bristol – Glencar Construction Ltd
23Divisional Highlights – easi-edge Ltd
Dock 5, Salford Project Cornbrook, Manchester
Recent Projects:
• Cornbrook, Manchester - ISG Construction
• Dock 5, Ordsall Lane, Salford - Bridgestone Construction
• Milburngate, Durham - Tolent Construction Milburngate, Durham
• S1 Kings Cross, London - Elland Steel
• The Manchester College - Willmott Dixon
• Barton Court School, Canterbury – Kier Construction
24Divisional Highlights – hoard-it Ltd
Anfield, Liverpool Nightingale Hospital, Glasgow
Recent Projects:
• Pinewood Studios, Slough – Sir Robert McAlpine
• Swindon Radiotherapy Centre, Swindon – John Sisk & Son
• Prince Charles Hospital, Merthyr Tydfil – Interserve Pinewood Studios, Slough
• Anfield, Liverpool – Clan Construction
• Nightingale Hospitals, various– Graham Construction
• Glasgow Harbour, Glasgow – Vinci
25Divisional Highlights – Shafton Steel Services
Services include:
• Oxy Gas & HD Plasma Profiling
• CNC Plate Drilling
• Bevel Head Plasma Profiling
• Shear Punch Drill Fittings
• Shotblasting & Primer Painting
• Section Sawing & Section Drilling
• Plate Girder Manufacture
26Awards
The Glass Works, Barnsley
• Billington Structures Ltd won the Sports and Recreation Projects Award
at the 2020 UK Tekla Awards for The Glass Works, Barnsley.
• Billington Structures also won the Public Vote at the 2019 UK Tekla
Awards for multiple plots at Wellington Place in Leeds.
• London School of Economics received a commendation in the 2020
Structural Steel Design Awards with The Wave, Coventry shortlisted.
27Summary – Outlook & Prospects
TK Maxx, Watford
• New investment has lead to the expansion of inhouse value added services at the
Shafton facility.
• Expansion of the graduate and apprentice programmes in 2021.
• Opportunities for diversification remain under review.
• Robust balance sheet underpinned by cash and property assets.
• Strong cash balance maintained and dividend reintroduced.
• Covid-19 mitigation measures implemented throughout the Group.
• Structural steelwork market forecast to increase by 16.2% and a further 7.4% in
2021/2022 respectively.
• Number of large project opportunities exist for delivery in 2021/2022.
28Contacts
Billington Holdings Plc: Tel: 01226 340 666
Mark Smith, Chief Executive Officer Web: www.billington-holdings.plc.uk
Trevor Taylor, Chief Financial Officer Social: @BillingtonSteel
W H Ireland Limited: Tel: 020 7220 1666
Chris Hardie
James Sinclair-Ford
Jasper Berry
IFC Advisory Limited: Tel: 020 3934 6630
Tim Metcalfe Email: billington@investor-focus.co.uk
Graham Herring
Zach Cohen
29Tel: +44 (0) 1226 340 666 | Web: www.billington-holdings.plc.uk
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