Steel specialist sees demand and margins on the rise in spite of slow start to 2016
Steel specialist Billington has reported a 63% increase in pre-tax profit for 2015 to £3.1m, up from £1.9m in 2014.
Revenue was also up 26% to £56.7m for the year, up from £45m, as it delivered its strongest financial results in five years.
The steel speclialist’s good results were attributed to increased demand for structural steel.
Operating margins rose to 5.4%, up from 4.2%, but both were still below pre-recession levels.
Towards the end of the year Billington said it completed its acquisition of the land, buildings and associated trading assets of Sherling Steel UK in Shafton for the sum of £4.9m to support the company’s expansion plans.
Billington chief executive Mark Smith said 2015 had been a “significant year” for the company and that its prospects in 2016 looked “positive” and the firm was aiming to improve operating margins further, while investigating new, complementary business opportunities.
However, he added that margins remained tight across the industry as a result of some existing latent capacity and Billington’s structural steel division had experienced a “slow start” to the year which due to delayed contracts and adverse weather conditions that have affected on-site progress.