Billington Holdings Plc · LSE:BILN
Billington — FY2018 Earnings Presentation
34 slides from Billington's earnings presentation, April 2019
Slide 1: Results for the 12 months ended 31 December 2018
3 Wellington Place, Leeds - Wates Results for the 12 months ended 31 December 2018 April 2019
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. • All Group companies performing amongst the best in their respective industries. • Record turnover for the Billington Group. • The Company is the t
Slide 4: Operating Divisions
Operating Divisions Billington Structures Ltd Peter Marshall Steel Stairs Ltd Nationally recognised and award-winning Specialist company engaged in the steelwork contractor, with over 70 years’ design, fabrication and installation of experience. Plants in Barnsley and Bristol highly engineered steel
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 Increase in easi-edge barrier stock by 10%. o Enhanced office and IT systems. o Plate girder production process imp
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) 270.00p (as of 21/03/19) 34.92 Major Shareholders Source: LSE Gutenga Investments PCC Ltd 49.9% Tarom Foundation 11.2% Corporate Structure – Billington
Slide 7: Board of Directors
Board of Directors Ian Lawson Non-Executive Chairman Stephen Wardell Non-Executive Director Ian is a fellow of both The Royal Institute of Chartered Surveyors Stephen is a member of the Institute of Chartered Accountants in (FRICS) and the Chartered Institute of Building (FCIOB) and has a wide Engla
Slide 8: 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 9: The Steel Industry
The Steel Industry • 2018 has seen reduced volatility to “H/I” beams supplied to the UK market. • Prices have risen steadily throughout 2018 as a result of increased Iron Ore, Coking Coal and Scrap Steel prices. • Reduced global output of Iron Ore relating to the Brazilian dam failure. • 2019 is exp
Slide 10: Steel Manufacture – Raw Materials
Steel Manufacture – Raw Materials IRON ORE PRICES SPIKED IN JAN DUE TO DAM COLLAPSE – REMAIN HIGH DUE TO MINE COKING COAL PRICES STARTING TO RISE AGAIN DUE TO CLOSURES AND DISRUPTIONS – NOW AT $85/T SUPPLY CONCERN, NOW AT $208/T SCRAP PRICES REMAIN HIGH AT $323/T EXPECTATION THEY WILL RISE FURTHER O
Slide 11: Historical Iron Ore Price – 2012 - 2019
Historical Iron Ore Price – 2012 - 2019 Source: www.indexmundi.com, 22/03/2019 11
Slide 12: Financial Review for the 12 Months Ended 31 December 2018
3 Wellington Place, Leeds - Wates Financial Review for the 12 Months Ended 31 December 2018 April 2019 12
Slide 13: Highlights
Highlights • A record turnover for the Billington Group. • Positive contributions from all Group divisions. • Excellent profit progression from all Group companies. • Gross (net) cash balance of £9.3m (£7.6m). • A number of large projects secured in the period. • Dividend of 13 pence per share in re
Slide 14: Five Year Summary
Five Year Summary Revenue (£m) Net Assets (£m) Profit Before Tax (PBT) (£m) 77.3 23.5 80 73.5 25 6 22.0 4.9 5 4.4 70 63.3 18.8 20 3.8 56.8 16.4 4 3.1 60 14.3 3 15 1.9 50 45.1 2 40 10 1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Earnings Before Interest, Tax, Earnings
Slide 15: Overview
Overview • Consistent share price in a turbulent equity market. • Further capital expenditure projects at Shafton being developed. • Extremely busy first half of 2019. • Steel input prices have gradually increased during the period. Improved stability in recent months. • Trading has been cash genera
Slide 16: The Impact of Shafton
The Impact of Shafton Shafton Steel Services (a trading division of Billington Structures Ltd) • On 18 December 2015, the Group completed the acquisition of a 25 acre site in Shafton, Barnsley for £2.5m. • Shafton provides steel processing services to the wider construction and engineering markets.
Slide 17: Shafton Investment
Shafton Investment FICEP Endeavour Saw / Drill Line Corimpex Beam Welding Line FICEP Gemini Plate Processing System 17
Slide 18: Financial History
Financial History Consistent, steady growth of Revenue and Profit. 18
Slide 19: Financial History
Financial History 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2013 2014 Historical PBT Margin 2015 2016 —= Margin 2017 2018 billington” holdings pic 19
Slide 20: Financial Summary
Financial Summary 12 months to 12 months to £’000 31 December 2018 31 December 2017 Revenue 77,266 73,518 Total costs (excluding depreciation and 70,763 67,459 one-off redundancy costs) Adjusted EBITDA 6,503 6,059 Depreciation and redundancy costs 1,502 1,631 Group operating profit 5,001 4,428 Net f
Slide 21: Balance Sheet
Balance Sheet £’000 31 December 2018 31 December 2017 Non-Current Assets 15,711 15,789 Current Assets 28,849 24,775 Total Assets 44,560 40,564 Current Liabilities (19,609) (16,670) Non-Current Liabilities (1,500) (1,918) Total Liabilities (21,109) (18,588) Net Assets 23,451 21,976 21
Slide 22: Cash Flow
Cash Flow £’000 31 December 2018 31 December 2017 Profit after tax 4,049 3,504 Net cash flow from operating activities 562 2,146 Net cash flow from investing activities (1,679) (1,858) Net cash from financing activities (1,684) (1,762) Cash at beginning of period 8,063 6,033 Cash at end of period 9,
Slide 23: Forward Order Book
Forward Order Book Forward Order Book - Sales to Invoice - 5 Year History £m - Order Book Feb '13 Aug '13 Feb '14 Aug '14 Feb '15 Jun '15 Mar '16 Aug '16 Dec-16 Mar-17 Jun-17 Dec-17 Mar-18 Jun-18 Dec-18 23
Slide 24: Divisional Breakdown
Divisional Breakdown 2018 Divisional Breakdown 2017 Divisional Breakdown 3% 5% 6% 5% 4% 4% 6% 4% 81% 82% Billington Structures Easi-edge Marshall Steel Stairs Hoard-it Shafton Billington Structures Easi-edge Marshall Steel Stairs Hoard-it Shafton 24
Slide 25: Divisional Highlights
Divisional Highlights • Billington Structures accounts for 81% of Group revenue. • Solid performance from all Group divisions. • A positive start by all Group divisions in 2019. • A good number of opportunities exist in a buoyant marketplace. • Continued focus on future capital expenditure projects.
Slide 26: Divisional Highlights
Divisional Highlights Billington Structures Ltd Completed Projects include: • Boeing Facility, Sheffield – JF Finnegan • Pinewood Studios, Buckinghamshire – McAlpine • 125 Deansgate, Manchester – Marcus Worthington • 7&8 Wellington Place, Leeds – Wates • Amazon Centre, Avonmouth – ISG 26
Slide 27: Divisional Highlights
Divisional Highlights Peter Marshall Steel Stairs Ltd Completed Projects include: • Lime Street, London - William Hare • Amazon Centre, Avonmouth – ISG / BSL • Redevelopment Project, London – William Hare • Park Drive, Abingdon – Mifflin Construction Ltd • Balmoral Tanks Factory, Barnsley 27
Slide 28: Divisional Highlights
Divisional Highlights easi-edge Ltd Completed Projects include: • X1 The Landmark, Manchester – Forrest Construction • Scotway Accommodation, Glasgow – Graham Construction • Avebury Boulevard, Milton Keynes – Galliford Try • Keiper School, Durham – BAM Construction • Forth Banks, Newcastle Upon Tyne
Slide 29: Divisional Highlights
Divisional Highlights hoard-it Ltd Completed Projects include: • Warwick University, Coventry – Kier • Prince Charles Hospital, Wales – Interserve • Riverside, Rochdale – Willmott Dixon • Meadowbank Stadium, Edinburgh – Maxi Construction • Lloyds Banking, Belfast – Wates 29
Slide 30: 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 30
Slide 31: Awards
Awards Greenwich Peninsula Energy Centre Coventry Waterpark was a two time Winner at the UK Tekla Awards, received a Commendation for at the 2018 taking home both the Public Vote 2018 and Sports & Recreation Structural Steel Design Awards. Award 2018. 31
Slide 32: Summary – Outlook & Prospects
Summary – Outlook & Prospects • New value added services brought inhouse as a result of the new machinery at Shafton. • Further enhancement of the apprentice programme. Billington have been working closely with the BCSA to develop and promote the new industry specific apprentice programme (CRAFT). •
Slide 33: Contacts
Contacts Billington Holdings Plc 01226 340 666 Mark Smith, Chief Executive Officer Trevor Taylor, Finance Director W H Ireland Limited 0161 819 8875 Katy Mitchell Chris Viggor IFC Advisory Limited 0203 934 6630 Tim Metcalfe billington@investor-focus.co.uk Miles Nolan Zach Cohen 33
Slide 34: www.billington-holdings.plc.uk
125 Deansgate, Manchester – Marcus Worthington & Co +44 (0) 1226 340 666 www.billington-holdings.plc.uk @BillingtonSteel