The firm this morning reported a challenging market during the first half as it navigated delayed projects, steel price rises and main contractors squeezed by projects tendered before the latest wave of inflationary pressure.
Over the first six months of this year, Billington revenue in the first half edged up 15% to £38m as the firm recovered from the worst effects of Covid with pre-tax profit up to £760,000 from £610,000 previously.
Mark Smith, chief executive officer of Billington, said that while market conditions remained challenging, he was confident in the long term prospects for the group.
“The order book continues to grow, comprising both delayed and new projects and the group has significant future order prospects at improving margins.
“There are many larger, more complex projects in prospect, and the number and quality of enquires continues to improve,” said Smith.
“We are seeing opportunities in all sectors, particularly large retail distribution warehouses, data centres, ‘Gigafactories’, food processing developments, public sector works, rail infrastructure, together with a return of some commercial office development projects.”
He added: “We anticipate a further improvement in group financial performance in the second half of the year, although the precise outturn for the year will be dependent on the timing of certain key contracts, combined with any effects from continuing material price inflation and supply constraints.”
Cash decreased by 25% to £13m at 30 June with inventories and work in progress increasing to £14m (30 June 2020: £7m).