Steel firm sees bottom line nosedive
The ongoing impact of the covid-19 pandemic and jump in steel prices saw profit at steelwork contractor Billington slip by close to 90% last year.
The AIM-listed firm said pre-tax profit nosedived from £1.7m to just £200,000 – a fall of 88% – on revenue up a quarter to just under £83m.
It said its numbers were hit by the continuing effects of the pandemic, raw material price increases, along with supply constraints for certain materials and labour.
Billington said it would take a £1.1m charge after the firm said a client it was working for went into administration earlier this year. It added: “The Company has taken the decision to provide for the debt owed while continuing to seek recovery of the monies.”
It also said it had repaid a deferred VAT liability of £671,000 under the coronavirus deferral scheme. The amount of cash at the year-end was £10.4m, down one third from the previous year.
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