Billington says market recovery now expected next year
Billington warned this morning that full year profit will be below expectations after the steelwork contractor said client delays and falling confidence will hit year-end numbers.
The listed steelwork contractor said revenue in the six months to June fell 28% to £42m while pre-tax profit was down two thirds to £1.7m.
Chief executive Mark Smith said: “Following a strong performance by Billington in 2024 it is unfortunate that the market for structural steelwork and the construction industry more widely has, as a result of economic uncertainty and lack of consumer confidence, become increasingly subdued during the first half of 2025.”
He added: “The timing of profit recognition on certain significant contracts, as a consequence of client led project delays, will result in the recognition of margin later than was previously anticipated. We are optimistic that the market will see some recovery in 2026 as stability and increased confidence returns to the sector.”
Smith said margins had also been affected by “pricing pressure for new work evident in the market”.
Explaining the profit warning, Billington said: “The programmed delivery of a number of contracts has experienced client led delays and as a result the group expects to recognise margin later than previously forecast, with profit previously expected to be recognised in 2025 now expected to be recognised in 2026. It is therefore expected that the results for the year ended 31 December 2025 will be below market expectations.”
Cash at the half year was £18.7m, down from £21.7m at the end of last year.
The firm also said that chief financial officer (CFO) Trevor Taylor had been moved to a new board role of chief operating officer. Dave Jones has been promoted to CFO.
Last year, Billington saw revenue fall 15% to £113m with pre-tax profit slipping 19% to £11m from the record high in 2023.
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