16 April 2024
Billington Holdings
Plc
("Billington" or the "Company" or
the "Group")
Results for the year ended 31 December
2023
Billington Holdings Plc (AIM: BILN), one of
the UK's leading structural steel and construction safety solutions
specialists, is pleased to announce its audited results for the
year ended 31 December 2023.
Highlights
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31 December 2023
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31 December
2022
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Change
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Revenue
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£132.5m
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£86.6m
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+53.0%
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EBITDA*
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£15.5m
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£8.0m
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+93.8%
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Profit before tax
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£13.4m
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£5.8m
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+131.0%
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Profit for the year
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£10.3m
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£4.7m
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+119.1%
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Cash and cash equivalents
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£22.1m
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£11.6m
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+90.5%
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Earnings per share
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84.4p
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39.1p
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+115.9%
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Dividend per share
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33.0p
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15.5p
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+112.9%
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Return on Capital Employed (ROCE)**
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57.4%
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29.7%
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+93.3%
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* Earnings before interest, tax,
depreciation and amortization
** Operating profit divided by
total equity less the net defined benefit pension surplus and net
cash
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Billington delivered a record
performance in 2023 with strong trading across the Group
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Revenue increased by 53.0% to
£132.5 million (2022: £86.6 million)
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The Group achieved a significant
increase in profits, with profit before tax of £13.4 million (2022:
£5.8 million)
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Strong cash balance of £22.1
million at year end (31 December 2022: £11.6 million) and the Group
is now debt free
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Dividend recommended of 33 pence
per share, which should be seen as an
ordinary dividend of 20 pence per share and as an additional
exceptional amount of 13 pence per share, reflective of the
outstanding performance of the Group in the year
(2022: 15.5 pence per share, all relating to an
ordinary dividend)
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Mark Smith, Chief Executive Officer of Billington,
commented:
"2023 was an exceptional year for Billington, with an
excellent trading performance across the Group, despite continuing
macroeconomic challenges and against the backdrop of demand for
structural steel in the UK remaining at a similar level to
2022. I believe Billington is increasingly being seen as the
steel work contractor of choice and the growth in
Billington's market share in 2023 is particularly
noteworthy. Whilst
there
inevitably remain further challenges ahead and market uncertainties
are likely to remain for some time, the Group has made significant
investments for the future and currently has a record order
book. I am therefore confident that with our strong balance
sheet and order book Billington will continue to perform well and
in line with current market expectations."
For further
information please contact:
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Billington Holdings Plc
Mark Smith, Chief Executive
Officer
Trevor Taylor, Chief Financial
Officer
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Tel: 01226 340 666
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Cavendish Capital Markets Ltd - Nomad and
Broker
Ed Frisby / Charlie Beeson -
Corporate Finance
Andrew Burdis - ECM
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Tel: 020 7220 0500
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IFC
Advisory Limited - Financial PR and IR
Tim Metcalfe
Graham Herring
Zach Cohen
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Tel: 020 3934 6630
billington@investor-focus.co.uk
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About Billington Holdings Plc
Billington Holdings Plc (AIM: BILN), one of
the UK's leading structural steel and construction safety solutions
specialists, is a UK based Group of companies focused on structural
steel and engineering activities throughout the UK and European
markets. Group companies pride themselves on the provision of high
technical and professional standards of service to niche markets
with emphasis on building strong, trusted and long-standing
partnerships with all of our clients. https://billington-holdings.plc.uk/
Investor
Presentation
Billington's CEO, Mark Smith, and
CFO, Trevor Taylor, will provide a live presentation relating to
the annual results via the Investor Meet Company platform today, 16
April 2024, at 15.30 BST.
The presentation is open to all
existing and potential shareholders. Questions can be submitted via
your Investor Meet Company dashboard at any time during the live
presentation.
Investors can sign up to Investor
Meet Company for free and add to meet Billington via:
https://www.investormeetcompany.com/billington-holdings-plc/register-investor
Investors who already follow
Billington on the Investor Meet Company platform will automatically
be invited.
The information
contained within this announcement is deemed to constitute inside
information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is
part of UK law by virtue of the European Union (Withdrawal) Act
2018. The information is disclosed in accordance with the Company's
obligations under Article 17 of the UK MAR. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Chairman's
Statement
2023 was an exceptional year for
Billington, with an excellent trading performance across the
Group.
In 2023 revenue increased by 53.0
per cent to £132.5 million (2022: £86.6 million) with profit before
tax increasing to £13.4 million (2022: £5.8 million), reflecting
strong trading across the Group and the benefit of
improved manufacturing efficiencies from our
capital investment programme across all the Group's production
facilities. This is combined with the
successful delivery of a number of high quality contracts.
The Basic Earnings Per Share ("EPS") for the year amounted to 84.4
pence compared with 39.1 pence in 2022. Our balance sheet
strengthened further with Net Assets of £47.8 million at 31
December 2023 (2022: £34.3 million), with a strong gross cash
balance of £22.1 million at 31 December 2023 (31 December 2022:
£11.6 million), as working capital unwound from the middle of the
year, as expected.
Billington Structures performed
exceptionally in 2023, driven by a number of high value contracts
across a variety of sectors including high tech manufacturing, data
centres, energy from waste, distribution and commercial office
developments. The business also benefited from the Group's
capital investment strategy and focus on efficiency improvements
enabling increased capacity and higher margins. The business
is well set for the future with steel prices softening to nearer
long-term average rates and more market stability being
experienced. As announced on 22 March 2024, the Group has recently
won contracts with a combined value of approximately £90 million,
to be delivered over the next 24 months, providing further
confidence for the future.
Peter Marshall Steel Stairs
continued the strong performance seen over the past three years,
recording record revenues for the year. Whilst the business
continued to face challenging market conditions, it retained robust
margins by focusing on contracts where a profitable performance
could be achieved. The Company currently enjoys a strong
order book both for projects being undertaken by Billington
Structures and third parties, with significant prospects to secure
further business.
The Easi-Edge perimeter edge
protection and fall prevention business faced a challenging period
in 2023, although it remained a significant contributor to Group
profits. Significant investment has been made in the
business, with additional staff added and a product refurbishment
and product development programme being undertaken. Easi-Edge
remains a profitable market leader and is well placed for the
future.
Hoard-it enjoyed a record year in
2023, as it continued to expand and diversify its offerings.
The business is increasingly being seen as the specialist hoarding
supplier of choice and it is now established as one of the leading
suppliers in its markets. With the expanded Brand-it offering
complementing Hoard-it, the business is well placed for the future
and has made a good start to 2024.
Specialist Protective Coatings
(SPC), formed in March 2022, has proved to be an excellent addition
to the Group, focused on surface preparation and the application of
protective coatings for products across a variety of sectors.
The significant capital expenditure programme undertaken to ensure
the business had the ability to thrive and grow was completed in
2023. SPC's performance was ahead of management's
expectations in 2023 and the Company enjoyed its first year of
profitability. With SPC operating at full capacity for the
foreseeable future we expect it to continue to deliver a strong
performance.
The Group has secured a number of
significant contracts for 2024, and beyond, and is well placed to
take advantage of the wide-ranging further opportunities within our
strong pipeline.
Dividend
In the first half of 2023
Billington declared a final dividend in relation to the year ended
31 December 2022 of 15.5 pence per share amounting to
£1.9 million, which was
2.52 times covered by 2022 earnings.
The Board feels it is appropriate
for Billington to continue to be dividend paying at a level that
reflects underlying earnings whilst continuing to maintain a robust
balance sheet. The Board is therefore pleased to be
recommending an increased final dividend of 33.0 pence per share
for 2023, which is covered 2.56 times by earnings.
The dividend should be seen as an ordinary
dividend of 20 pence per share and an additional exceptional amount
of 13 pence per share due to the outstanding performance of the
Group in the year.
The dividend will be paid on 2
July 2024, subject to shareholder approval at the Company's AGM
expected to be held on 4 June 2024. The associated ex-dividend date
will be 6 June 2024 with a record date of 7 June 2024. No
interim dividend for 2023 was declared (2022: nil), a policy
consistent with prior years.
Board
John Gordon retired as an
Independent Non-Executive Director of Billington at the AGM in June
2023. John had been a Non-executive Director since 2007 and
I, on behalf of the Board, would like to thank John for his
substantial contribution to Billington and we wish him well in his
future endeavours.
Lyndsey Scott was appointed as an
independent Non-Executive Director with effect from 1 September
2023. Lyndsey has brought a wealth of HR and people
management experience to the Group and has previously worked across
a range of sectors, both in the UK and internationally.
Lyndsey has experience as a Non-Executive Director as well as being
a member of remuneration, audit and nomination committees with
James Cropper Plc, an AIM traded company. Lyndsey has assumed
the chair of the Company's Remuneration Committee since her
appointment.
Our
People
The key to Billington's continued
success is the hard work and dedication of its workforce, and I
would like to place on record my thanks to the whole Billington
team for their contribution in 2023.
The Group continues to work hard
to address the industry wide challenges in recruiting sufficient
skilled labour. In 2023 the Group expanded its partnership
with Betterweld, a specialist training provider, together with
working in partnership with other local education providers.
However, as stated in the last annual report it became necessary
for the Group to recruit from overseas to have sufficient skilled
labour to ensure productive capacity is increased and profitability
maximised. The overseas recruitment programme was concluded
in 2023, at least for now, with an additional 25 staff members
joining during the year. The new employees have already
provided a valuable contribution to the Group's capabilities and
are allowing us to service the demand we are seeing.
The Group remains committed to
supporting its employees, particularly in a time when increases in
the cost of living are being experienced and continues to actively
promote its apprenticeship and graduate schemes.
ESG
Billington believes that operating
in a sustainable and responsible manner is
key to the growth and success of the Group. The Group has an
established Environmental, Social and Governance ("ESG") committee
to identify, develop and implement carbon reduction projects,
together with ensuring the Group's social impact is maximised
through the delivery of a wide range of social projects.
In September 2023, the Company's
largest subsidiary, Billington Structures, was certified as 'carbon
neutral' for its operations, by Carbon Neutral Britain, following
their audit of Billington Structures' emissions and carbon dioxide
offsetting programme. Following carbon reduction initiatives
across the Group, I am pleased to report that all of the Group's
businesses are now certified as carbon neutral.
Billington is committed to achieving, as a
minimum, the goal set by SBTi (Science Based Targets Initiative),
of a 50% carbon emissions reduction by 2030 and net zero by
2050. There is a significant global initiative to ensure
'clean steel' and Billington are proud to be a member of SteelZero,
a global standards and certification initiative designed to deliver
environmentally responsible production of steel and speed up the
transition to a net zero steel industry.
During 2023 the Group moved to
using electricity procured from 100 per cent green energy with a
REGO accredited zero per cent emissions factor. The vehicle
fleet is increasingly electric, reducing carbon emissions by
approximately 15% annually, and further planned reduction
activities include the introduction of Biofuel (HVO) across
factories and site-based activities. Additionally, 1,770
tonnes of CO₂e emissions have been offset via the Woodland Fund™
portfolio of verified carbon offsetting projects. Billington
also maintains the 'Gold Standard' awarded by the British
Constructional Steel Association for meeting the requirements of
the 'Steel Construction Sustainability Charter'.
Economic
Outlook
During the year a degree of
stability returned on the supply side and the Group experienced
none of the supply issues seen over the last few years. There
was some softening in steel prices, which has assisted margins in
the short term and energy costs were lower than anticipated at the
start of the year. This stability is expected to remain
during 2024.
The Group continues to benefit
from significant projects in energy from waste, high-tech
manufacturing, infrastructure and data centre facilities, where
activity has returned to, or exceeded, pre-Covid-19 pandemic
levels. However, some of the markets in which Billington operates
continue to see reduced levels of activity from historic levels,
particularly large office developments, and industrial warehousing
development, with less speculative development being
undertaken.
The overall consumption of
structural steelwork in the UK in 2023 remained at a similar level
to 2022. However, certain markets were more buoyant than
others, with the consumption of structural steelwork in industrial
buildings falling by 2.2 per cent and for commercial offices rising
by 6.8 per cent. The overall market is expected to see a
reduction in demand in 2024 of approximately 5 per cent, before
stabilising and returning to growth in 2026. Sector market
forecasts continue to be subject to revision as the impact of wider
macroeconomic factors are assessed, with potential reductions in
interest rates expected to have a positive impact on
demand.
We are conscious that many of the
main construction contractors continue to operate under significant
pressure, with a number ceasing business in 2023, and the Group has
experienced deferred and cancelled contracts. The Group
insures its exposures with the maximum available cover, in an
increasingly difficult credit insurance market, and focuses on
projects with the more robust larger contractors that can deliver
an appropriate margin. We have a comprehensive process in
place to assess the risks associated with individual projects on a
case-by-case basis to reduce and mitigate these associated risks
where possible.
Current
trading and outlook
Billington enjoyed an exceptional
year in 2023 with strong trading across the Group and benefits
being seen from the Group's capital investment programme and
innovative approach. Whilst there inevitably remain further
challenges ahead and macroeconomic uncertainties are likely to
remain for some time, we are seeing a consistent stream of
opportunities at sustainable margins, and with a strong balance
sheet and a record order book, I believe Billington is well placed
to deliver a strong performance again in 2024.
In closing, I would like to thank
Billington's Board, employees, shareholders and all stakeholders
for their continued support.
Ian Lawson
Non-Executive Chairman
15 April 2024
Group Strategy
The business model of the Group is
to operate as a designer, manufacturer and installer of structural
steelwork through its subsidiaries Billington Structures Limited,
Peter Marshall Steel Stairs Limited and Specialist Protective
Coatings Limited, and as a supplier of safety solutions and barrier
systems to the construction industry, through its subsidiary
Easi-Edge Limited as well as providing specialist site hoarding and
branding systems through Hoard-it Limited.
The parent company acts as a holding company providing management
services to its subsidiaries.
Billington strives for continuous
improvement in all aspects of its operations to ensure we harness
the energy of our people and deliver for our repeat clients in a
safe, economic and sustainable manner, enabling the value for our
shareholders to be maximised.
The Company has adopted five key
pillars to its strategy that will remain the focus of the business
to drive shareholder value. The five key pillars, or '5 P's',
are focussed on developing, progressing and managing the areas that
can add value and protect our business, and are set out
below:
People
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To ensure a safe working
environment and drive our safety culture forward
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To actively promote and encourage
the next generation of people into our exciting industry
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To harness individuals' energy,
ambition and core skills
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To develop, motivate and inspire
the next generation of people into and within our
business
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To evolve a diverse, inclusive and
thriving workforce
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Properties
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To ensure value is driven from our
facilities
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To maintain a cost base to allow
manufacturing margins to be optimised
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To ensure manufacturing
capabilities are appropriate to service the needs of our clients,
projects and markets
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To have appropriate infrastructure
to provide our businesses the ability to grow and
prosper
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Product
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To provide a quality product using
a right first-time philosophy
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To innovate and drive
technological improvements across the businesses
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To challenge the status quo of
manufacturing techniques in our industry
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To learn from our mistakes in an
open, constructive and inclusive way
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Position
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To be the partnered steelwork
contractor of choice in the UK for major projects
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To seek and expand the Group's
operations to provide construction solutions to our
clients
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To actively identify, target and
partner with clients on large projects to maximise collective
value
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To expand the Group's operations
into markets which can add value to the business and provide
economic resilience
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To deliver long term sustainable
returns and growth to our shareholders
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Planet
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To operate with environmental
considerations at the forefront of all operational
decisions
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To support, encourage and take an
active involvement in the UK's structural steelwork industry's
drive for carbon reduction
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To ensure the company proactively
seeks areas for energy reduction and operational
efficiencies
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To reduce waste through proactive
engagement with clients, optimum engineering and partnerships with
the supply chain
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Chief Executive Statement
Operational Review
2023 was an exceptional year for
the Group as a number of high-quality contracts were secured at
improved margin levels. The Group's revenues increased
by 53.0 per cent to £132.5 million for the year
(2022: £86.6 million) despite the overall
UK structural steel market remaining at a similar level to
2022. This growth in Billington's market share is
particularly pleasing and I believe places the Group in an even
stronger position for the future.
Despite margin pressures remaining
across the industry, profit before tax increased by 131.0 per cent
to £13.4 million (2022: £5.8
million), resulting in the highest levels
of revenue and profits ever achieved by the Billington Group and
ahead of our expectations at the start of the year. The Group
is also now debt free, having repaid the remaining modest
outstanding debt in January 2023.
Whilst we are mindful of the
uncertain macroeconomic environment and continuing margin
pressures, the Group is enjoying
significant benefits from the improved manufacturing efficiencies
arising from the deployment of its capital investment programme
across all the Group's production facilities, together with
increases in skilled labour and the services the Group is able to
offer.
Group Companies
Billington Structures and Shafton Steel
Services
Billington Structures is one of
the UK's leading structural steelwork contractors with a highly
experienced workforce capable of delivering projects from simple
building frames to complex structures in excess of 10,000
tonnes. With two facilities in Barnsley and a further
facility in Bristol and a heritage dating back over 75 years, the
business is well recognised and respected in the industry with the
capacity to process over 50,000 tonnes of steel per
annum.
The Shafton facility operates in
two distinct business areas. The first undertakes activities
for Billington Structures. The second, Shafton Steel
Services, offers a complete range of steel profiling services to
many diverse external engineering and construction companies,
allowing for the supply of value added, complementary products and
services enhancing the comprehensive offering of the
Group.
The Group's structural steel
businesses had an exceptional 2023, with many of the projects undertaken being at higher margins than
those achieved in 2022. The business continues to serve a
wide variety of markets, with a good portfolio of customers.
Particularly strong demand is being seen in the energy from waste,
high-tech manufacturing, infrastructure and data centre
sectors. Whilst large office developments remain limited and
industrial warehousing development has slowed, Billington
Structures continued to secure contracts in these areas.
These higher margin contract wins,
coupled with the benefits being realised from the Group's capital
investment strategy and focus on efficiency improvements enabled a
significantly improved performance to be realised. The
structural steel businesses also benefited from the additional
skilled labour recruited from overseas and a softening in steel
prices, with a return to nearer historic norms, aiding the enhancement of margin on some projects.
The larger projects undertaken by
Billington Structures during 2023 included:
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Westfield EfW (Scotland)- energy
from waste
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University of Huddersfield -
education
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Circle Square (Manchester) -
commercial offices
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Arle Court (Cheltenham) -
infrastructure
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LON1 (Slough), LON4 (Hayes) - data
centres
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It is pleasing to note that again
some of the Company's complex and challenging projects were
recognised in some of the industry's prestigious awards. This
included the New Bailey project in Manchester being awarded 'The
Best Large Project Award' at the iStructE Northwest Structural
Engineering Awards 2023.
Further large items of capital
equipment were purchased for Billington Structures in 2023,
including two saw and drill line replacements, one in the Wombwell
facility and the other in Bristol. In December 2023 orders
were also placed for additional state of the art equipment,
including a plate laser machine for Wombwell and a drill cope for
Shafton. In making these purchases we are seeking to
capitalise on new developments to further improve both efficiency
and customer service, whilst ensuring the business is well placed
for the future.
Billington Structures has a strong
order book for 2024 and into 2025, including the £90 million of
contracts announced in March 2024, and is seeing additional
significant future project opportunities at improving
margins. Whilst the outlook for certain sectors is uncertain
and a slight market softening is expected in 2024, the future
prospects for Billington Structures are encouraging.
Specialist Protective Coatings
Specialist Protective Coatings was
formed in March 2022 following the Company's acquisition out of
administration of the trading assets of Orrmac Coatings Ltd.
SPC is focused on surface preparation and the application of
protective coatings for products across a variety of sectors
including rail, highways, defence, water, petrochemical, energy,
structural steel and infrastructure.
Since its formation, SPC based in
a 55,000 square foot facility in Sheffield, has undergone a
substantial refurbishment and investment programme to ensure the
facility is able to effectively service the most demanding of
projects, including shotblasting and lifting capabilities for steel
assemblies that are amongst the largest in the UK. This
programme was substantially completed in 2023 and the business is
now fully integrated within the Group, servicing both internal
Billington work and external customers.
During the year SPC operated at
near full capacity, trading ahead of management's expectations and
was profitable over the full year. In addition, the Group has
further expanded its dedicated on-site painting service to enable
SPC to be a one-stop-shop for the painting requirements of the
structural steel sector. SPC currently has a strong pipeline
of work and is expected to be operating at maximum capacity during
2024.
Notable projects undertaken by SPC
in 2023 included:
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Skelton EfW (Leeds) - energy from
waste
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LON4 (Slough) - data
centres
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Traps and handling frames - oil
and gas
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Pipework -
infrastructure
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Surge vessels -
infrastructure
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Peter Marshall Steel Stairs
Based in Leeds, Peter Marshall
Steel Stairs is a specialist designer, fabricator and installer of
bespoke steel staircases, balustrade systems and secondary
steelwork. It has the capability to deliver stair structures
for the largest construction projects and operates in sectors
spanning retail, data, commercial offices, education, healthcare,
rail and many more.
Peter Marshall Steel Stairs
continued to produce a strong performance during the year, again
recording record revenues and maintaining robust margins,
undertaking substantial work alongside Billington Structures and
for third parties. The business has maximised its capacity
during the year, focusing on efficiency to realise its full
potential.
Contracts were secured from a
variety of sectors, and notable projects undertaken by Peter
Marshall in 2023 included:
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1 Leadenhall (London) - commercial
offices
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Eastbrook Studios (Dagenham) -
film studios
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Crown Packaging (Peterborough) -
food production
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British Steel (Saltburn) -
manufacturing / distribution
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Next (Rotherham)-
distribution
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The outlook for Peter Marshall
Steel Stairs continues to be positive and the business has a strong
order book for 2024.
Easi-Edge
Easi-Edge is a leading site safety
solutions provider of perimeter edge protection and fall prevention
systems for hire within the construction industry. Health and
safety is at the core of the business which operates in a
legislation driven market.
Easi-Edge faced ongoing challenges
in 2023, with a continued limited number of projects in those
sectors, such as commercial office developments, that require a
greater amount of product when compared to most other types of
projects, such as distribution warehouses, although the business
remained a contributor to Group profits. Additional resource
has been added to the business to maximise its potential and it
retains its market leading position. A project refurbishment
and development programme is being undertaken, with new barrier
technologies being explored, to ensure the business is
appropriately positioned to secure available projects.
Significant projects undertaken by
Easi-Edge in 2023 included:
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City Labs (Manchester) - medicine
and health innovation hub
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Vantage Data Centre (London) -
data centres
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Animate Cinema Complex (Preston) -
leisure
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Council Offices (Blackpool) -
commercial offices
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Worrall Street (Salford) -
residential development
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Hoard-it
Hoard-it produces a unique range
of re-usable temporary hoarding solutions which are environmentally
sustainable and available on both a hire and sale basis tailored to
the requirements of its customers. An expanded graphics
solution, Brand-it, was introduced in 2021, which is being utilised
on both Hoard-it's own product and on those produced by
others. Brand-it's site graphics solutions enable site
perimeter hoarding to be a prime marketing tool with added
functionality such as anti-graffiti and anti-climbing
coatings.
Hoard-it had a record year in
2023, operating at near full capacity for much of the year and
benefiting from the Group's investment in stock levels in advance
of anticipated demand, enabling rapid deployment of its solutions.
It continued to take advantage of its industry leading
position, with further product development, diversification, and
expansion. The business is now established as one of the
leading suppliers in its sector and is increasingly being seen as
the supplier of choice, both in commercial and residential
developments.
During the year Brand-it's
graphics solutions were expanded. This is a value added, margin enhancing product, that has
also been a catalyst for the strong performance. In
particular, it has enabled the business to
be increasingly attractive for residential developments.
Significant projects were
undertaken for both new and existing customers and notable projects
in 2023 undertaken by Hoard-it included:
|
•
|
Baker Hicks (Scotland)
|
|
•
|
Vincent Wyles
(Coventry)
|
|
•
|
Canvey Island (Essex)
|
|
•
|
Secret Cinema
(Birmingham)
|
|
•
|
NOMA (Manchester)
|
Whilst material price inflation
continued to be experienced in the early part of the year, a
softening of material costs later in the year, in particular
timber, gives further confidence that margins can be enhanced in
2024. The positive momentum seen in
2023 has continued into the current year with a good pipeline of
new business for 2024. Further product development and
diversification is planned together with continued expansion of the
business geographically into areas of the UK currently
underserved.
Our
People
Billington, alongside the wider
steel industry has struggled with the recruitment of sufficient
skilled UK production and technical labour at its facilities in
recent years. In order to address these issues, the Group has
both expanded its schemes to train and develop skilled labour
locally and has recruited skilled labour from overseas.
Close relationships are being
maintained with a number of local education providers, and the
Group has provided support to the regional education sector through
collaborations with Barnsley College, Bath College, the University
of Sheffield and Sheffield Hallam University. The Company
regularly attends educational career days, hosts school visits to
its sites and seeks to develop talent from a young age with its
range of internal training programmes across all departments of the
business.
Billington has expanded its
partnership with Betterweld, a specialist training provider, to
provide fabrication/welding training in Bristol, as well as for its
two Barnsley based facilities. This partnership is providing
increasing access to trained personnel on a consistent basis
through the structured training and development programme.
Internally, the Billington Academy continues to assist apprentices
and other staff with training and upskilling, including business
best practice and compliance training.
We continue to actively promote
the Company's apprenticeship and graduate schemes in other areas,
particularly focusing on technical staff. Additionally,
Billington continues as an advocate, promoter, and contributor to
the British Constructional Steelwork Association's CRAFT apprentice
programme. The scheme has become an important path for the
Group to train, educate and progress structural steelwork
fabricators.
Despite the continuing programmes
to develop skilled personnel locally, it became necessary for the
Group to recruit skilled labour from overseas in order to meet the
shortfall in available skilled personnel and increase the
production capacities of the Company. In 2022 a total of 22
staff members were recruited from overseas and an additional 25
staff members joined from overseas in 2023. The overseas
recruitment programme has now been concluded for the present
time. These highly skilled fabricators, welders and technical
staff, have proved to be a strong asset for the business, being
deployed in Billington Structures, Shafton Steel Services, Peter
Marshall Steel Stairs and Group services.
In light of the cost of living
crisis and the want to support our employees the decision was taken
to bring forward the annual pay review planned for 1 January 2024
to July 2023. In July 2023 the Group awarded a record 7.5 per
cent pay increase to its staff, together with a year-end £1,000
bonus to recognise the employee contribution to delivering an
exceptional Group performance.
Average staff numbers in 2023
increased by 12.7 per cent, with 463 employed at the year
end. We expect staff numbers to remain broadly at this level
in 2024.
Health,
Safety, Sustainability, Quality and the
Environment
A commitment to health, safety,
sustainability, quality and the environment is core to everything
that Billington does.
Across the Group, led by our
Health and Safety department, we work to ensure that continued
progress can be achieved in enhancing working practices and
improving the safety culture at all the Group's facilities and in
our on-site activities. The Group aims to be proactive in the
identification, reporting and resolution of risks both on site and
in our production facilities to ensure that we are able to mitigate
the risks and promote safe ways of working. We are also
actively involved in a number of initiatives both locally and
nationwide to ensure the safety of our and other's staff. In
2023 a new behavioural safety programme was rolled out across all
Group facilities to further enhance the safety culture and
eliminate all avoidable accidents.
Minimising the impact of our
operations on the environment remains a strong focus. The
Group has implemented a number of initiatives aimed at reducing the
carbon footprint of our activities and we were pleased to report in
September 2023 that Billington Structures was certified as 'carbon neutral' for its operations, by
Carbon Neutral Britain, following their audit of Billington
Structures emissions and carbon dioxide offsetting programme.
Following this I am pleased to report that all of the Group's
businesses are now certified as carbon neutral.
The Group's primary requirement
for energy comes from electricity, as opposed to gas, and a large
proportion of the Group's four-year fixed energy price contracts
ended in 2023. On renewal there was an increase in Group
costs, but the impact on Group profitability is significantly less
than that caused by material price changes. All energy
contracts entered into by Group companies are, since May 2023, now
on 'green' tariffs that include carbon offsetting. We are also
focused on reducing energy usage where possible, altering or
replacing machinery where appropriate, and utilising hybrid,
electric and biofuel vehicles. Steel Zero, a commitment to
become carbon neutral and employ a responsible steel sourcing
strategy was joined in 2022 as part of the Group's journey to be a
leader in driving carbon reduction initiatives.
The Group is also conscious of
other environmental impacts from its operations and is seeking to
reduce these as far as possible. Weld fume extraction is one
area of particular focus and covered by extensive
legislation. Further investments were made in this area in
this area to ensure the Group meets current and expected future
legislative requirements, together with ensuring the safety and
wellbeing of its staff and the wider community.
Charity
In 2017 the Billington Charity
Foundation was established and Billington continues to be a
significant advocate and supporter of both local and national
charities.
Throughout 2023, Billington
donated to charities including Cancer Research UK, Barnardo's,
Oxfam and Mind, together with a range of local sports teams and
other causes that our employees are involved with. The Group
actively encourages involvement in initiatives intended to improve
the local areas in which our people live. Every year the
Billington team is asked to choose a charity they would like to see
the Group support and the Group's charity of the year for 2023 was
Cancer Research UK.
Steel and
Wider Construction Industry
Following the significant
increases in steel prices experienced over recent years, there was
a softening in prices during the early part of 2023, before
stablising over the remainder of the year and into 2024.
The UK continues on its journey to
become net zero by 2050. The UK steel industry is expected to
undergo a transformational change over the coming years as domestic
steel producers transition from blast furnace virgin steel
production to electric arc recycled steel production, supported by
the UK Government. The decommissioning of domestic blast
furnaces and subsequent replacement of lower emitting electric arc
furnaces is not anticipated to significantly impact the
availability of the primary products the Group utilises.
Billington keeps its steel supply
options under constant review and employs a variety of measures to
allow the Company to reduce its exposure to volatility in steel
prices and any variability in supply over the short term. The
Company has a forward thinking strategy, with hedging undertaken in
times of price stability or rising prices, coupled with appropriate
stockpiling of steel, to enable most project's principal pricing
risk to be covered. Although, over the longer-term, any price
rises are passed onto customers as far as possible. The Group
also continually reviews its steel procurement strategy in order to
reduce its reliance on any one supplier as far as
possible.
The Company communicates fully and
openly with customers regarding costs of work undertaken and
provides accurate and honest guidance and advice to customers to
ensure their requirements are met.
The Company strives to develop
positive relationships with suppliers to ensure both parties
understand each other's problems and requirements. It will
not use current or potential contracts to coerce suppliers into
unsustainable offers.
The Company treats its staff
fairly in all aspects of their employment, valuing their
contribution to the achievement of Company objectives and providing
them with opportunities for training and development.
The Company is proud of its long
standing and committed partner relationships with its supply chain
and in turn seeks to treat them fairly with timely payment for
works and the continued implementation of a 'no retention'
policy. The Group is also actively working with trade bodies
to seek to remove all cash retentions in the
industry.
Strategy, Investment and Acquisitions
The Group has continued its
strategy of improving operating margins through the investment and
upgrading of some principal items of capital equipment, combined
with projects to increase the capacity from the Company's fixed
asset base and adding additional headcount where appropriate.
The benefits of this strategy have been seen in the increased
capacity and improved operating margins achieved in 2023 and the
Group will continue to invest to ensure the Group maximises the
inherent value within the business and capitalises upon its strong
market position within the industry. 2023 was the third year
of the Group's five-year capital replacement programme and further
capital expenditure is expected in 2024 and 2025, before reducing
to lower levels.
We continue to assess acquisition
opportunities as they are presented and the Company's strong
balance sheet provides the ability for the Group to undertake
complimentary acquisitions. In addition, post the year
end, the Group has entered into an agreement with HSBC, the
Company's bankers for a £6.0 million Revolving Credit Facility
(RCF) for three years to provide enhanced flexibility to capitalise
on acquisition opportunities should suitable and appropriate
prospects be identified.
Prospects and
Outlook
2023 was an exceptional year for
Billington as the benefits of the Group's investment in efficiency
improvements and people, coupled with the Group's strong market
position and increased offering, enabled the Group to grow market
share, achieve higher than historic margins and to focus on those
sectors that can deliver better returns.
Whilst the macroeconomic
background remains uncertain, and some market softening is expected
in 2024, Billington is a robust business, with a strong market
position. With the recent large contracts secured, the Group
currently has a record order book and coupled with the Group's
strong balance sheet and a committed
workforce I believe that Billington is
very well positioned to continue to perform well and in line with
current market expectations.
I would like to thank Billington's
Board, shareholders and all stakeholders for their continued
support, and in particular I would like to thank the Billington
workforce for their hard work and dedication.
Mark
Smith
Chief
Executive Officer
15 April 2024
Financial
Review
Consolidated
Income Statement
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
Revenue
|
|
|
|
|
132,495
|
|
86,614
|
|
Operating profit
|
|
|
|
13,246
|
|
5,911
|
|
Profit before tax
|
|
|
|
13,388
|
|
5,829
|
|
Profit after tax
|
|
|
10,325
|
|
4,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for shareholders
|
|
|
10,325
|
|
4,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit margin
|
|
|
10.0%
|
|
6.8%
|
|
Return on capital employed*
|
|
|
57.4%
|
|
29.7%
|
|
Earnings per share (basic)
|
|
|
84.4p
|
|
39.1p
|
*Operating profit divided by total
equity less the net defined benefit pension surplus and net
cash
Revenue increased 53.0 per cent year on year as a
result of increased output across both trading segments of the
Group. Structural Steel output increased 55.9 per cent and
output related to Safety Solutions increased 2.9 per cent,
primarily related to additional site hoarding provided through
Hoard-it.
The Structural Steel segment relates to the
Billington Structures, Peter Marshall Steel Stairs and Specialist
Protective Coatings entities. Activity across the segment was
materially higher than in the prior year with a large number of
significant contracts being completed in the period. 2023 and 2022
has noted significant increases in direct labour both from the UK
and overseas allowing the entities to expand their productive
capacities and enhance the recovery of overheads resulting in
improved margin returns.
Forecasts indicate that the consumption of
structural steelwork within the UK in 2023 remained consistent with
2022 with an output of some 893,000 tonnes. The Group notes an
increase in market share during the year with significant increases
in output in a consistent market.
The Company has secured a number of significant
contracts in 2024 for delivery in 2024 and 2025. A record orderbook
is noted and further supports that Billington is becoming the
steelwork contractor of choice for its clients.
Sector market projections indicate that consumption
will reduce by 4.9 per cent to 849,000 tonnes in 2024 before
returning to growth with a forecast 1.1 per cent increase to
858,000 tonnes in 2025 and a further 1.7 per cent to 873,000 tonnes
in 2026. The consistent increases in UK Bank of England
interest rates in 2023 has suppressed the UK construction sector.
Forecast stabilisation, and potential reductions in interest rates
towards the second half of 2024 is anticipated to have a positive
impact across the sector and allows the Company to look forward
with optimism.
Underlying operating margins increased to a record
10.0 per cent in the year as a result of reductions in raw material
prices, further capital expenditure efficiency gains and higher
output as a result of increased direct labour within all the Groups
facilities. Furthermore, energy costs incurred were below
that anticipated at the start of year as the energy market
stabilised and latterly has seen material declines to the wholesale
prices. The operating margin achieved within the Safety Solutions
entities declined to 13.8 per cent (2022: 22.3 per cent) as a
result of reduced volumes of output in the Easi-Edge business
relating to the depressed commercial office sector combined with
raw material inflationary price pressures in the Hoard-it
business. The operating margin achieved within the Structural
Steelwork entities represented a significant improvement against
the prior period, at 10.5 per cent (2022: 5.8 per cent).
Underlying earnings per share increased from 39.1
pence in 2022 to 84.4 pence in 2023 representing an increase of
115.9 per cent.
As a result of high activity throughout the year
cash management and prudent utilisation was a primary focus.
Significant activity towards the latter part of the first half of
the year realised into cash by the year end. The gross cash
balance at the year end was £22,084,000 (2022: £11,634,000).
The average gross cash balance during the year was £9,168,000
(2022: £7,890,000). The strong cash position leaves the Group
well placed to achieve both its short and long-term objectives to
maximise returns, while providing financial security and providing
the ability to invest and seek opportunities for
diversification.
As a result of rising interest rates the remaining
mortgage of £750,000 associated with the purchase of the Shafton
site in 2015 was repaid in January 2023.
Since the year end the Group has entered into an
agreement with HSBC, the Company's bankers for a £6.0 million
Revolving Credit Facility (RCF) for 3 years to provide enhanced
flexibility to capitalise on acquisition opportunities should
suitable and appropriate prospects be identified.
Average staff numbers in 2023 increased 12.7 per
cent to 454 following a rise of 8.3 per cent in 2022, with an
overall rise in staff costs of 31.1 per cent year on year excluding
the cost associated with Share Based Payments (SBP). Industry wide
challenges remain to ensure wage inflation is mitigated and in
attracting sufficient quality resource across all
disciplines. At the year end employee numbers increased to
463 and is anticipated to remain consistent throughout 2024.
In light of the cost of living crisis and the want
to support our employees the decision was taken to bring forward
the annual pay review to July and award a record increase to its
staff. The workforce is the lifeblood of the business ensuring a
motivated and settled environment allows the company to positively
seek to further build upon the most successful period in the
Billington era.
The business maintains credit insurance on its
customers where available at commercial rates. In light of the
recent challenging macro economic environment, combined with high
levels of inflation, some clients have had a number of poorly
performing contracts resulting in a negative financial performance.
Consequently, the level of insurance in the market has noted
reductions in the limits being underwritten.
The Shafton facility continues to provide the Group
with opportunity to expand and diversify its operations further
optimising the current resources within the control of the
Group.
Consolidated
Balance Sheet
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
|
Non current assets
|
|
|
|
27,814
|
|
21,902
|
|
|
Current assets
|
|
|
|
53,782
|
|
38,774
|
|
|
Current liabilities
|
|
|
|
(29,116)
|
|
(22,506)
|
|
|
Non current liabilities
|
|
|
(4,642)
|
|
(3,823)
|
|
|
Total equity
|
|
|
|
|
47,838
|
|
34,347
|
|
|
|
|
|
|
|
|
|
|
|
As part of the capital investment programme across
the Group two further significant capital expenditure projects were
completed relating to the replacement of saw/drill lines at two of
the Groups facilities. The Group's 5-year capital investment
strategy relating to the upgrading and enhancement of the principal
pieces of equipment is yielding positive results and with two years
remaining will note the replacement cycle principally complete. Two
further orders for major pieces of machinery were placed towards
the conclusion of the year with installation anticipated in the
first half of 2024.
Within the Autumn statement the Chancellor confirmed
the permanent extension of enhanced capital allowances. The timing
of the capital expenditure strategy will allow the company to
maximise the benefit related to the claiming of its capital
allowances associated with its extensive investments in new plant
and machinery.
The decision was taken during the year to revalue
the Group's properties, in order that they reflect current market
value. As a result, revaluation gains totalling £5,868,000 have
been recognised.
Within non-current assets, property, plant and
equipment increased by £6,065,000, represented by capital additions
of £2,927,000, revaluation of properties of £5,868,000,
depreciation charges of £2,215,000, impairment charges of £372,000
and net disposals of £143,000.
The defined benefit pension scheme has performed
well in the period against a backdrop of continued difficult equity
and bond markets. At the year end, a surplus of £1,871,000
along with a corresponding deferred tax liability of £468,000 has
resulted in a net recognised surplus of £1,403,000 (2022:
£1,630,000). The scheme was closed to future accrual in
2011.
The net deferred tax liability at the year end was
£3,001,000 (2022: £1,525,000), being a deferred tax liability of
£1,066,000 (2022: £981,000) related to temporary timing
differences, combined with a deferred tax liabilities of £468,000
(2022: £544,000) related to the defined benefit pension scheme
surplus and £1,467,000 related to the revaluation of land and
buildings (2022: nil).
The increase of £15,008,000 in current assets
included a decrease of £1,758,000 in inventories, a decrease of
£7,008,000 in contract work in progress, an increase of £13,324,000
in trade and other receivables, and an increase in the gross cash
balance of £10,450,000.
Retention balances, contained within trade and other
receivables outstanding at the year end, were £4,848,000 (2022:
£2,198,000). It is anticipated that £3,840,000 will be
received within one year and £1,008,000 in greater than one year.
Disappointingly, main contractor clients are being more insistent
upon the holding of cash retention rather than the taking of an
appropriate retention bond in order to maintain and preserve their
cash resources. The company is driven to work with the wider
construction industry to abolish cash retentions.
Trade and other payables increased by
£6,437,000. Within this, trade payables and accruals
increased £1,998,000 and £1,854,000 respectively with contract
liabilities increasing £346,000 and social security and other taxes
and other payables increasing £296,000.
Total equity increased by £13,491,000 in the year to
£47,838,000. The financial position of the Group at the end
of the year remains robust and provides a strong platform to drive
shareholder value.
Consolidated Cash
Flow Statement
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
|
Group profit after tax
|
|
|
|
|
|
10,325
|
|
4,734
|
|
|
Depreciation
|
|
|
|
|
|
|
|
2,215
|
|
2,044
|
|
|
Capital expenditure
|
|
|
|
|
|
|
(2,899)
|
|
(4,516)
|
|
|
Investment property movement
|
|
|
|
|
(120)
|
|
(404)
|
|
|
Tax (paid)/received
|
|
|
|
|
(2,591)
|
|
192
|
|
|
Tax per income statement
|
|
|
|
|
|
3,063
|
|
1,095
|
|
|
Decrease/(increase) in working capital
|
|
|
|
1,853
|
|
(2,064)
|
|
|
Dividends
|
|
|
|
|
|
|
|
(1,900)
|
|
(363)
|
|
|
Repayment of bank and other loans
|
|
|
|
|
(750)
|
|
(250)
|
|
|
Share based payment charge
|
|
|
|
939
|
|
806
|
|
|
Others
|
|
|
|
|
|
|
|
315
|
|
(22)
|
|
|
Net cash inflow
|
|
|
|
|
|
10,450
|
|
1,252
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
|
|
|
11,634
|
|
10,382
|
|
|
Cash and cash equivalents at end of year
|
|
|
|
|
|
|
22,084
|
|
11,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends of £1,900,000 were paid in the year.
A dividend has been proposed in respect of the 2023
financial year of 33 pence per share (£4,268,000), covered 2.56
times earnings and will be paid to shareholders in July 2024 upon
approval at the AGM. The dividend is split as an ordinary dividend
of 20 pence per share and an exceptional dividend of 13 pence per
share, reflective of the outstanding performance of the Group in
the year.
The Group remains committed to treating its
suppliers and subcontractors fairly and to paying them in line with
their agreed payment terms. It is the Group's policy not to
withhold retentions from members of its valued supply chain.
Working capital at the year end was as below:
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
|
Inventories and contract work in progress
|
|
|
8,116
|
|
16,882
|
|
|
Trade and other receivables
|
|
|
|
|
|
23,582
|
|
10,258
|
|
|
Trade and other payables
|
|
|
(28,481)
|
|
(22,044)
|
|
|
Working capital at end of year
|
|
|
|
|
3,217
|
|
5,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cash balances at the year end totaled £22,084,000
and there were no property loans outstanding (2022: £750,000)
following their repayment, representing a net cash position of
£22,084,000 (2022: £10,884,000).
The strong cash position also provides the Group
with financial stability and allows the investment in capital
assets to improve operating margins and provide a comprehensive
service to its clients.
2024 and 2025 will see the conclusion of the
programme of capital additions, primarily within the structural
steel division of the Group. The additional capital
expenditure will support both an increase in the range of services
the Company can offer as well as replacing a number of aged
machines with more efficient models. Investment in the latest
technologies will ensure Billington can deliver the most
challenging projects, efficiently, for its clients.
Pension
Scheme
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
|
Scheme assets
|
|
|
|
|
6,611
|
|
6,820
|
|
|
Scheme liabilities
|
|
|
|
|
(4,740)
|
|
(4,646)
|
|
|
Surplus
|
|
|
|
|
|
1,871
|
|
2,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other finance income/(expense)
|
|
37
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions to defined benefit scheme
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To limit the Group's exposure to future potential
pension liabilities the decision was taken to close the remaining
Billington defined benefit pension scheme to future accrual from 1
July 2011. The scheme's liabilities have moved broadly in
line with the scheme's assets. The assets are primarily
invested in UK Government bonds and the scheme continues to remain
in a strong surplus position with an unlikely requirement that
funds will be required from the Company in the foreseeable
future.
The scheme's triennial valuation for the period
ended 31 March 2023 was completed on 16 November 2023. The position
of the scheme as at the date of the valuation was an asset position
of £6,834,000 and a liability position of £5,006,000 resulting in a
surplus of £1,828,000 (2020: £272,000). At the previous
valuation date of 31 March 2020, the equity market had been
significantly impacted by the pandemic and as a consequence
affected the value of the assets within the scheme. The
assets of the scheme have since been transferred into UK government
bonds to protect and manage the strong surplus position of the
scheme in the long term. The next actuarial valuation is due
to be completed as at 31 March 2026.
Employee Share
Option Trust (ESOT)
The Group operates an ESOT to allow employees to
share in the future, continued success of the Group, promote
productivity and provide further incentives to recruit and retain
employees. Options are issued based on seniority and length of
service across all parts of the Group.
A Long-Term Incentive Plan (LTIP) was introduced
across the Group to assist in the remuneration of management and
further align the interests of senior management and shareholders.
Awards are made subject to achieving progressive Group performance
metrics over a three-year period.
At the year end there were 928,718 (2022: 993,669)
share options outstanding at an average exercise price of £0.05
(2022: £0.14) per share. Share options are in place in HMRC
approved and unapproved schemes.
The charge included within the accounts in respect
of options in issue is £939,000 (2022: £806,000).
Trevor
Taylor
Chief Financial
Officer
15 April
2024
Consolidated income statement for the year ended 31 December
2023
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
Revenue
|
|
|
|
132,495
|
|
86,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials and
consumables
|
|
|
|
(78,182)
|
|
(51,277)
|
|
Other external charges
|
|
|
|
(6,053)
|
|
(4,792)
|
|
Staff costs
|
|
|
|
|
|
|
|
(25,536)
|
|
(19,566)
|
|
Depreciation
|
|
|
|
|
|
|
|
(2,215)
|
|
(2,044)
|
|
Other operating charges
|
|
|
|
(7,263)
|
|
(3,024)
|
|
|
|
|
|
|
|
|
|
|
(119,249)
|
|
(80,703)
|
|
Operating profit
|
|
|
|
|
13,246
|
|
5,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
|
|
|
224
|
|
26
|
|
Finance costs
|
|
|
|
|
|
|
|
(82)
|
|
(108)
|
|
Net
finance income/(expense)
|
|
|
|
|
142
|
|
(82)
|
|
Profit before tax
|
|
|
|
13,388
|
|
5,829
|
|
Tax
|
|
|
|
(3,063)
|
|
(1,095)
|
|
Profit for the year
|
|
|
|
10,325
|
|
4,734
|
|
Profit for the year attributable to equity holders of the
parent company
|
|
|
|
10,325
|
|
4,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
84.4
p
|
|
39.1
p
|
|
Diluted earnings per share
|
|
|
|
79.3
p
|
|
37.8
p
|
All results arose from continuing
operations.
The principal accounting policies
and notes form part of these Group financial statements.
Consolidated statement of comprehensive income for the year
ended 31 December 2023
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
£'000
|
|
|
|
£'000
|
|
Profit for the
year
|
|
|
|
10,325
|
|
|
|
4,734
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Items that will
not be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Revaluation of land and buildings
|
|
|
|
5,868
|
|
|
|
-
|
|
Movement on deferred tax relating to
revaluation
|
|
|
|
(1,467)
|
|
|
|
-
|
|
Remeasurement of net defined benefit pension
surplus
|
|
|
(340)
|
|
|
|
(486)
|
|
Movement on deferred tax relating to pension
surplus
|
|
|
85
|
|
|
|
122
|
|
|
|
|
4,146
|
|
|
|
(364)
|
|
Items that will
be reclassified subsequently to profit or loss
|
|
|
|
|
|
|
|
|
Loss on foreign currency forward
contracts
|
|
|
(31)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
(31)
|
|
|
|
-
|
|
Other
comprehensive income/(expense), net of tax
|
|
|
4,115
|
|
|
|
(364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the year attributable to equity holders of
the parent company
|
14,440
|
|
|
|
4,370
|
The principal accounting policies
and notes form part of these Group financial statements.
Consolidated statement of financial position as at 31
December 2023
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
£'000
|
£'000
|
|
£'000
|
£'000
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
25,329
|
|
|
|
19,264
|
|
Investment property
|
|
|
|
|
614
|
|
|
|
|
464
|
|
Pension asset
|
|
|
|
|
|
1,871
|
|
|
|
2,174
|
|
Total non
current assets
|
|
|
|
|
27,814
|
|
|
|
21,902
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
1,576
|
|
|
|
3,334
|
|
|
|
Contract work in progress
|
|
6,540
|
|
|
|
13,548
|
|
|
|
Trade and other receivables
|
|
23,582
|
|
|
|
10,258
|
|
|
|
Cash and cash equivalents
|
|
22,084
|
|
|
|
11,634
|
|
|
|
Total current
assets
|
|
|
|
53,782
|
|
|
38,774
|
|
Total
assets
|
|
|
|
|
|
|
81,596
|
|
|
|
60,676
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
|
-
|
|
|
|
250
|
|
|
|
Trade and other payables
|
|
|
28,481
|
|
|
|
22,044
|
|
|
|
Lease liabilities
|
|
|
|
157
|
|
|
|
143
|
|
|
|
Current tax liabilities
|
|
|
447
|
|
|
|
69
|
|
|
|
Derivative financial instruments
|
|
|
31
|
|
|
|
|
-
|
|
|
|
Total current
liabilities
|
|
|
|
29,116
|
|
|
22,506
|
|
Non current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
|
-
|
|
|
|
500
|
|
|
|
Lease liabilities
|
|
|
|
1,641
|
|
|
|
1,798
|
|
|
|
Deferred tax liabilities
|
|
|
3,001
|
|
|
|
1,525
|
|
|
|
Total non
current liabilities
|
|
|
|
4,642
|
|
|
3,823
|
|
Total
liabilities
|
|
|
|
|
|
33,758
|
|
|
|
26,329
|
|
Net
assets
|
|
|
47,838
|
|
|
|
34,347
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
1,293
|
|
|
|
1,293
|
|
Share premium
|
|
|
|
|
|
1,864
|
|
|
|
1,864
|
|
Capital redemption reserve
|
|
|
|
132
|
|
|
|
132
|
|
Other components of equity
|
|
|
|
3,847
|
|
|
|
(761)
|
|
Retained earnings
|
|
|
|
|
|
40,702
|
|
|
|
31,819
|
|
Total
equity
|
|
|
47,838
|
|
|
|
34,347
|
