Billington says worst is over as 2013 set for marginal growth

Aaron Morby 11 years ago

Constructional steelwork contractor Billington has called the bottom of the market and predicted 2013 will see marginal improvement in trading.

The steelwork firm has strengthened its business development and management team after a year of cost-cutting and single shift working at its fabrication facilities.

The stock market listed steelwork firm returned another pre-tax loss for 2012. But, excluding redundancy costs, this trading loss was improved to just £100,000 compared to £1.6m in the red the year before.

Selective tendering and single shift working saw turnover slump nearly a third to £38m.

Billington said it had started the year with an improved order book across a portfolio of work.

“There was a growing sense of order and stability in structural steel markets towards the end of 2012, helped by further small reductions in capacity as smaller players consolidated or failed,” said Steve Fareham, chief executive.

“Although we expect conditions to remain challenging throughout 2013, we do foresee marginal improvement.

“Having invested accordingly to take advantage of opportunities in non-traditional, growth sectors, and with our financial strength intact, we look to the future with cautious optimism.”

The firm is now targeting rail, energy from waste and complex structural steel projects. It also said its tie-up to bid for larger steelwork packages with Bourne Group remained robust with several major opportunities for a first major order.

“The strategic review, which was concluded in 2012 resulted in a decision to revert to a single shift working pattern that helped to deliver annualised cost savings of £3m,” said Fareham.

“This decision, along with other operational efficiency improvements and being selective about work undertaken, enhanced margins and helped deliver an improved performance for the group.

He said results at the Peter Marshall Stairs subsidiary were disappointing.  A new managing director joined at the start of the year and was in the process of carrying out a full review of the company’s operations and processes to return the division to profit.

Fareham said there had also been management changes at its easi-edge safety barrier division which was now seeing a gradual increase in demand for barriers.

The hoard-it division continued to make steady progress over the year with a new commercial director who joined the business at the start of the year.

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
2 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
2 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
2 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
2 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
2 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
2 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
2 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
3 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
3 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
3 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
4 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
3 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
3 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
4 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
4 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
4 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
4 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
4 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
5 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
5 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
5 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
5 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
6 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
5 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
5 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
5 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
6 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
6 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
6 days ago

Contractor services