Billington Structures unveils profit rise

Billington Holdings, parent of steelwork contractor Billington Structures, has reported a 9% increase in pre-tax profit to £2.53 in its latest interims. During the same period last year, the figure was £2.32m.

Operating profit increased by 17.3% to £2.65m (H1 2008: £2.26m).

Revenue was also up, by 5.3%, to £37.4m (H1 2008: £35.5m).

Billington Structures, the group's structural steel business, returned an operating profit of £2.7m (H1 2008: £2.61m) on revenue of £32.7m (H1 2008: £31.9m).

The group had a cash balance of £8.64m at 30 June 2009, compared with £3.98m at 31 December 2008. 

Trade liabilities stood at £17.5m (H1 2008: £17.3m).

Billington's pension liabilities were up a quarter at £6.97m (H1 2008: £5.52m).

The group said: "Current trading remains very challenging, however we are projecting that the outcome for 2009 will be considerably better than had originally been anticipated. 

"The projected level of activity within the structural steel business for the second half of the year, although at lower margins, will make a much greater contribution than had originally been anticipated. 

"However, selling prices are currently much tighter and margins much reduced, which will impact significantly on results in 2010."

Peter Hems, executive chairman of Billington Holdings said: "We are delighted that our core structural steel business is showing an increasingly robust performance in challenging conditions for the wider construction sector.

"Our established market position has given the Group a strong order book which has ensured another resilient half year performance.  Whilst the state of the construction sector remains a concern, the strong financial position that we have maintained for the Group will support our specialist businesses as we continue to grow."