Billington steelwork margins back to 5%

Aaron Morby 9 years ago
Share

Structural steelwork group Billington has delivered its best annual results for five years with pre-tax profits up over 60% to £3.1m.

Mark Smith, Chief Executive Officer, says the business is ready to expand after buying a new factory in Shafton, south Yorkshire as part of a three-year plan to raise production
Mark Smith, Chief Executive Officer, says the business is ready to expand after buying a new factory in Shafton, south Yorkshire as part of a three-year plan to raise production

Revenue increased 26% to £57m as Billington’s main structural steel business delivered several high profile projects including a 5,000 tonne shed for Next.

This resulted in an output of some 25,000 tonnes of fabricated material, which is close to the capacity of the existing facilities.

A rise in productivity was achieved by lengthening the working pattern at fabrication facilities and supplementing work output with approved sub-let resources.

Operating margins returned to 5.4%, against 4.2% in 2014, but still need to return to pre-recession levels.

Mark Smith, chief executive officer, said that the outlook for 2016 looked very positive despite some slippage in the first quarter due to both weather conditions and capacity constraints in the wider supply chain, necessitating additional work being taken on at lower margins in order to maintain workload.

“After a slow start to 2016 as a result of a number of significant contracts being delayed the remainder of the year looks set to be busy for all divisions, providing management confidence for the full year.

He said: “Billington’s expansion strategy has progressed significantly following the purchase of the Shafton site which increased the capacity of the company’s structural steel work activities and, in the future, will provide increased opportunities for development.”

Across the business Billington’s Peter Marshalls steel stair business started the year with substantial order books and positive enquiries.

The easi-edge safety barrier division has seen a steady level of demand throughout the year and the hoard-it division managed to secure term deals with major contractors.

Smith added: “The aim during 2016 is to maintain and further enhance the group’s operating margin and investigate new, complementary business opportunities.”

Latest news

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
14 hours ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
21 hours ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
21 hours ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
21 hours ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
2 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
21 hours ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
21 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
1 day ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
2 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
2 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
2 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
3 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
3 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
2 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
3 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
3 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
3 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
3 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
3 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
3 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
3 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
3 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
6 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
6 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
6 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
6 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
7 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
6 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
7 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
6 days ago