The two steelwork firms hope that by pooling resources they can take on their bigger rivals to secure work in the fast-growing high-rise office market.

The joint venture, which will be called BS2, is being kept under wraps while details are being finalised although the Enquirer understands the deal will be signed with Dorset based Bourne Steel.

Steve Fareham, chief executive, said the signing of a co-operation agreement with a similar sized steelwork contractor would provide an alternative major competitor to the UK market place.

He added: “BS2 is intended to focus on the high-rise London commercial market, which appears to be an increasing opportunity in 2012 and beyond.”

“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.”

Unveiling latest results for 2010, Fareham said that the year had been particularly challenging although Billington had managed to supply and erect around 21,000t compared to 20,000t in 2009.

This included the first use of post-tensioned steel at the world triathlon championships in London’s High Park.

But cut-throat bidding in the steelwork impacted on profits from on-going operations, falling to £1.4m from £5.3m last time. Turnover also fell 26% to £42.3m.

Billington ended the year with £4.9m net cash.

Fareham said: “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.”

He added that the worst was over for the structural steelwork sector but warned he feared the upturn would see another round of company failures.

“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.”