A positive update to the Stock Exchange today revealed that the firm is benefiting from its recent restructuring and more realistic bids in the market.

The company said: “Following a wide-ranging operational review, annualised costs savings of £2.8m have been delivered in order to appropriately right size group operations to market conditions.

“The benefit of this action is now being realised.

“Encouragingly, the group’s trading performance has also improved.

“Margins in the company’s core structural steel business have improved albeit from historically low levels, partly as a result of capacity exiting the market and tenders now being bid for at more realistic levels.”

Billington has also been boosted by its diversification into the rail and energy sectors.

Recent senior management changes at the group’s easi-edge and hoard-it subsidiaries have also contributed to trading improvement at both of these divisions.

The company added: “While market conditions remain challenging, the board is confident that the combination of restructuring action taken by the group and genuine, if tentative, signs of sustainable market improvement should ensure that Billington is well placed to deliver sustainable growth throughout 2013 and beyond.”