Billington Holdings Plc · LSE:BILN
Billington — FY2017 Earnings Presentation
34 slides from Billington's earnings presentation, March 2018
Slide 1: Results for the 12 months ended 31 December 2017
Results for the 12 months ended 31 December 2017 March 2018 1
Slide 2: Disclaimer
Disclaimer The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of
Slide 3: Introduction
Introduction • Billington Holdings Plc is a leading UK specialist structural steelwork and ancillary construction safety products and service provider. • It is made up of a dynamic group of construction companies located nationwide which are performing amongst the best in their respective industries
Slide 4: Operating Divisions
Operating Divisions Billington Structures Ltd Nationally recognised and award- Peter Marshall Steel Stairs Ltd winning steelwork contractor, with Specialist company engaged in the over 70 years’ experience. Plants design, fabrication and installation in Barnsley and Bristol with of highly engineered
Slide 5: Overview
Overview • The Group has been able to invest an encouraging amount into the individual businesses as a result of their positive performances. Investments across the business include: o New Ficep Endeavour and Gemini machines installed and fully operational at the year end. o Corimpex beam welding ma
Slide 6: Corporate Profile
Corporate Profile Share Price Graph – 12 month period London (AIM) Ordinary shares in issue BILN 12,934,327 Share Price Market Cap. (GBP, millions) 259.00p (as of 14/03/18) 33.50 Source: LSE Corporate Structure – Billington Holdings Plc Major Shareholders Gutenga Investments PCC Ltd 49.9% Tarom Foun
Slide 7: Board of Directors
Board of Directors Peter Hems Non-Executive Chairman Steve Fareham Non-Executive Director Qualified as a Chartered Accountant in 1973, and appointed as an audit BSc (Hons) MSc CENG FIStructE MIET CMIOSH. Chartered Structural and business advisory partner with Grant Thornton in 1979 - resigned in Eng
Slide 8: Confidence Factor
Confidence Factor 2 3 4 5 6 7 8 9 10 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Structural Steel Market Confidence Jan-10 Apr-10 Source: National Steelwork Contractors Group (NSCG) – 2018 Jul-10 Oct-10 J
Slide 9: Structural Steel Market Trend Graph
Structural Steel Market Trend Graph UK Consumption of Constructional Steelwork - 2000-2020 1,500 1,400 1,300 1,200 Tonnes (000's) 1,100 1,000 900 800 700 600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tonnes - actual Tonnes - projected Da
Slide 10: The Steel Industry
The Steel Industry • The sale between TATA & Greybull Capital completed in June 2016. The revival of the British Steel brand has been positively received in the market. • Profitable first year trading for British Steel. • Greybull Capital has significant funding in place and are seeking further fund
Slide 11: Steel Manufacture – Raw Materials
Steel Manufacture – Raw Materials 11
Slide 12: Steel Input Cost to Billington
Iron Ore - US $/Tonne 0 20 40 60 80 100 120 140 160 180 200 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Iron Ore Price Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Historical Iron Ore Price – 2012 - 2018 Oct-13 Billington Steel Price Dec-13 Feb-14 A
Slide 13: Review for the 12 Months Ended 31 December 2017
Review for the 12 Months Ended 31 December 2017 March 2018 13
Slide 14: Highlights
Highlights • A record turnover for the Structural Steel division of the Group. • Positive contribution from all Group divisions. • Excellent progress at Billington Structures and Peter Marshalls. • Margins remain varied across sectors, complexities and timescales. • Successful installation of new, s
Slide 15: Overview
Overview • Increase in share price of 582% over the last five years. (38p 14/03/13 – 259p 14/03/18) • Capital investment in Shafton completed in the year. • Extremely busy second half in 2017. • Margins have tightened as a number of contract decisions appear to have been delayed as a result of Brexi
Slide 16: The Impact of Shafton
The Impact of Shafton • On 18 December 2015 the Group completed the acquisition of a 25 acre site in Shafton, Barnsley for £2.5m. • The site contains two large industrial buildings with a combined usable area of 181,000 sq ft. • Associated plant and equipment from Sherling Steel (UK) Ltd, with a val
Slide 17: The Impact of Shafton
The Impact of Shafton • Site located five miles from Head Office in Barnsley. • Shafton Steel Services to offer steel profiling and processing services to the wider fabricator/engineering markets. • New machinery installed in the period, increasing overall Group capacity. • Heavy-lifting capacity in
Slide 18: Shafton Investment
Shafton Investment FICEP Endeavour Saw / Drill Line FICEP Gemini Plate Processing System Corimpex Beam Welding Line 18
Slide 19: Financial History
Financial History Revenue - £m Profit Before Tax - £m 80.0 5 70.0 4 2.2 60.0 3 2.1 39.20 1.4 50.0 2 36.2 1.1 0.3 2.2 40.0 32.2 1 1.7 1.7 31.1 1.1 0.5 0.8 21.0 23.8 0.3 30.0 18.1 0 -0.2 20.4 -0.6 -0.3 20.0 -1 34.3 -1.4 24.6 27.1 10.0 21.3 22.8 20.1 21.3 -2 17.2 - -3 2010 2011 2012 2013 2014 2015 2016
Slide 20: Financial History
Financial History Historical PBT Margin 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 (2.00%) (4.00%) (6.00%) Margin 20
Slide 21: Financial Summary
Financial Summary 12 months to 12 months to £’000 31 December 2017 31 December 2016 Revenue 73,518 63,334 Total costs (excluding depreciation and 67,459 58,255 one-off redundancy costs) Adjusted EBITDA 6,059 5,079 Depreciation and redundancy costs 1,631 1,254 Group operating profit 4,428 3,825 Net f
Slide 22: Balance Sheet
Balance Sheet £’000 31 December 2017 31 December 2016 Non-Current Assets 15,789 14,321 Current Assets 24,775 21,479 Total Assets 40,564 35,800 Current Liabilities (16,670) (14,996) Non-Current Liabilities (1,918) (2,005) Total Liabilities (18,588) (17,001) Net Assets 21,976 18,799 22
Slide 23: Cash Flow
Cash Flow £’000 31 December 2017 31 December 2016 Profit after tax 3,504 2,971 Net cash flow from operating activities 2,146 2,485 Net cash flow from investing activities (1,858) (1,014) Net cash from financing activities (1,762) (1,020) Cash at beginning of period 6,033 2,611 Cash at end of period
Slide 24: Forward Order Book
Forward Order Book Forward Order Book - Sales to Invoice £m - Order Book Aug '07 Feb '08 Aug '08 Feb '09 Aug '09 Feb '10 Aug '10 Feb '11 Aug '11 Feb '12 Aug '12 Feb '13 Aug '13 Feb '14 Aug '14 Feb '15 Jun '15 Mar '16 Aug '16 Dec-16 Mar-17 Jun-17 Dec-17 24
Slide 25: Divisional Breakdown
Divisional Breakdown 2017 Divisional Breakdown 2016 Divisional Breakdown 0% 0% 5% 4% 5% 4% 4% 5% 6% 5% 82% 80% Billington Structures Easi-edge Marshall Steel Stairs Hoard-it Tubecon Shafton Billington Structures Easi-edge Marshall Steel Stairs Hoard-it Tubecon Shafton 25
Slide 26: Divisional Highlights
Divisional Highlights • Structural Steel business accounts for 82% of Group revenue. • Solid performance from Billington Structures. • All Group divisions trading profitably and at / around budget. • Number of larger project tenders in the marketplace. • hoard-it continues to make good progress in e
Slide 27: Divisional Highlights
Divisional Highlights Billington Structures Ltd Projects Completed: • IKEA, Sheffield - Clugston • London School of Economics - Mace • Coventry Leisure Centre – Buckingham • 50-60 Station Road, Cambridge – Galliford Try • Lime Street, Liverpool – ISG • Avonmouth Distribution Centre – ISG • Wellingto
Slide 28: Divisional Highlights
Divisional Highlights Peter Marshall Steel Stairs Ltd Projects Completed: • BAE Barrow – Sir Robert McAlpine • Old Truman Brewery - Structuretone • White City Shopping Centre, London – Westfield Europe Ltd • Hill Street, Glasgow – Ogilvie Construction • Celtic Business Park – Bowmer & Kirkland 28
Slide 29: Divisional Highlights
Divisional Highlights easi-edge Ltd Projects Completed: • Arndale Centre, Eastbourne - Kier • Ellesmere Street, Manchester – Graham Construction • Forth Banks, Newcastle – James Killelea • Devon Street, Liverpool – Ridgemere Construction • Lime Street, Liverpool – Billington Structures • Tib Street,
Slide 30: Divisional Highlights
Divisional Highlights hoard-it Ltd Projects Completed: • Morriston Hospital, Swansea - Interserve • Lowry Hotel, Manchester – Sir Robert McAlpine • BBC White City, London - Maylim • Beaulieu Site, Chelmsford – Countryside Properties • Midland Metro, Birmingham – Colas Rail 30
Slide 31: Divisional Highlights
Divisional Highlights Shafton Steel Services Services Include: • Oxy Gas & HD Plasma Profiling • CNC Plate Drilling • Bevel Head Plasma Profiling • Shear Punch Drill Fittings • Shotblasting & Painting • Section Sawing • Section Drilling 31
Slide 32: Awards
Awards Billington Structures received a Commendation for The Hurlingham Club and a Merit for RAF Brize Norton in the 2017 Structural Steel Design Awards (SSDA). Two projects have been entered for the 2018 SSDA. Winner of the Made in Yorkshire Manufacturing Winner of the UK Tekla Awards Public Appren
Slide 33: Summary – Outlook & Prospects
Summary – Outlook & Prospects • Increasing competitiveness noted on new tender opportunities. • New value added services brought inhouse as a result of the new machinery at Shafton. • Further enhancement of apprentice programme. Billington have been working closely with the BCSA to develop and promo
Slide 34: Contacts
Contacts - Billington Holdings Plc 01226 340666 - Mark Smith, Chief Executive Officer - Trevor Taylor, Finance Director - W H Ireland 0161 8198875 - Katy Mitchell - Ed Allsopp - Blytheweigh 020 7138 3204 - Megan Ray - Rachael Brooks www.billington-holdings.plc.uk @BillingtonSteel 34