Billington Holdings Plc · LSE:BILN
Billington — FY2022 Earnings Presentation
34 slides from Billington's earnings presentation, April 2023
Slide 1: Results for the 12 months ended 31 December 2022
Results for the Presentation 12here title months ended 31 December Subtitle 2022 and author here Date here April 2023
Slide 2: Presentation Team
2 Presentation Team Data Centre, Slough Mark Smith Chief Executive Officer Mark has an in-depth knowledge of the construction industry with over 35 years’ experience, driving for growth and profit in competitive markets. Mark joined Billington as COO in June 2014 and subsequently took over as CEO fr
Slide 3: Executive Summary
3 Executive Summary City Square, Leeds • Billington is a leading UK structural steel and construction safety solutions specialist. • Turnover has increased 4.7 per cent in the year. • Operating profit margin of 6.8 per cent. • Dividend declared of 15.5 pence per share. • Successful integration of Sp
Slide 4: Divisional Breakdown
4 Divisional Breakdown 2022 Revenue Breakdown 2% Structural Steel Safety Solutions 3% 9% 7% 3% 76% Presentation title here Billington Structures Easi-Edge Subtitle and author here Marshall Steel Stairs Hoard-it Date here Shafton Specialist Protective Coatings
Slide 5: Celebrating 75 Years
5 Celebrating 75 Years “2022 is a very special year for us, and we are delighted to be celebrating 75 years.” The very first Billington steel fabrication shop opened in 1947 in Barnsley. The company has grown over the years with the addition of Yate, the creation of Easi-Edge and Hoard-it, the acqui
Slide 6: Corporate
6 Corporate London (AIM) Share Price Ordinary Shares in issue (No.) Market Cap. (GBP, millions) Major Shareholders BILN 395.00p 12,934,327 51.09 Gutenga Investments PCC Ltd 36.4% as of 14/04/2023 Close Brothers 11.9% Ocorian Trustees Ltd 6.29% Otus Capital 9.7% Ruffer LLP 4.9% GPIM 5.3% Advisors Ban
Slide 7: Divisional Highlights – Billington Structures Ltd
7 Divisional Highlights – Billington Structures Ltd Shepperton Studios, London “Large, multi sector projects” Recent Projects: • Triathlon Industrial Warehouse, Essex - ISG Ltd. • Magna Park Industrial Units, Lutterworth - TSL Projects Ltd. • NewCold, Corby - TSL Projects Ltd. • Next Brookfield Park
Slide 8: Divisional Highlights – Peter Marshall Steel Stairs Ltd
8 Divisional Highlights – Peter Marshall Steel Stairs Ltd Data Centre, Slough “Diverse client base” Recent Projects: • Data Centre, Slough - Billington Structures Ltd. • Morrisons, Thrapston - ISG Ltd. • Next Brookfield Park, Rotherham - Billington Structures Ltd. • One Leadenhall, London - William
Slide 9: Divisional Highlights – Easi-Edge Ltd
9 Divisional Highlights – Easi-Edge Ltd Stockport Exchange Office “Market leader in edge protection systems” Recent Projects: • RAF Coningsby - Galliford Try plc. • Bolton Medical Sciences College - Willmott Dixon Ltd. • Stockport Exchange Office - James Killelea & Co Ltd. • Deyes High School, Manch
Slide 10: Divisional Highlights – Hoard-it Ltd
10 Divisional Highlights – Hoard-it Ltd Granton Station, Scotland “Record performance in 2022” Recent Projects: • Canvey Island, Essex - Balfour Beatty plc. • West Cumberland Hospital, Whitehaven - Graham Group. • Birmingham Council House - ISG Ltd. • Granton Station, Scotland - Kier Group. • Univer
Slide 11: Divisional Highlights – Brand-it
11 Flush Fit Di-bond Divisional Highlights – Brand-it “New division established in the market” A division of Hoard-it, Brand-it provides a comprehensive range of site graphic solutions. The hoarding that surrounds your site offers an ideal solution for promoting your business and construction projec
Slide 12: Divisional Highlights – Shafton Steel Services
12 Divisional Highlights – Shafton Steel Services “Capacity expansion in 2022” Recent Projects: • Specialist Bridge Beams - Severfield plc. • Thick plate Profiling - ADEY Steel Ltd. • Fitting Packages - Nationwide Structures Ltd. • Shear Punch Line Fittings - Newbridge Engineering Ltd. • Plate Shotb
Slide 13: Divisional Highlights – Specialist Protective Coatings
13 Divisional Highlights – Specialist Protective Coatings “Increased demand for intumescent paint treatments on structural steelwork” Recent Projects: • Blast Cleaning and Surface Preparation. • Single and Multi-Coat Paint Systems. • Tank Linings. • Fire Protection. • Technical Support. • Quality Co
Slide 14: Financial Highlights
14 Financial Highlights Project Mandolin, Peterborough • Contracts being delivered across the full range of market sectors. • Record performance within Hoard-it and Peter Marshall Steel Stairs. • Dividend declared of 15.5 pence per share - covered 2.52 times underlying earnings. • Continuation of ca
Slide 15: Income Statement
15 Income Statement “6.8% Operating Profit Margin” Underlying Statutory 12 months to 12 months to 12 months to £’000 31 December 31 December 31 December 2022 2021 2021 Revenue 86,614 82,720 82,720 Total costs (excluding depreciation) 78,659 79,421 79,421 EBITDA 7,955 3,299 3,299 Depreciation 2,044 1
Slide 16: Continued Capital Investment
16 Autoblast Machine at SPC Continued Capital Investment “Further new Saw & Drill ordered for Yate” 2022 Capital Investment – Plant, equipment & machinery £m Saw & Drill (Wombwell) 0.94 Gemini Plate Profiling (Shafton) 0.59 Weld fume extraction and equipment 0.47 SPC Trading assets and new shotblast
Slide 17: Net Cash Movement 2022
17 Net Cash Movement 2022 “Positive cash generation with substantial net cash balance Presentation title here Subtitle and author here Date here 17 Noma 4 Angel Square, Manchester
Slide 18: The Wider Steel Market
18 The Wider Steel Market “Robust global steel supply” • More stable price environment in the second half of the year and into 2023. • Russia / Ukraine conflict significantly impacted plate availability in the UK and as a consequence noted substantial price escalation. • High energy costs continue t
Slide 19: Forward Order Book
19 Forward Order Book “Record orderbook” Forward Order Book - Sales to Invoice £m - Order Book Presentation title here Subtitle Dec-19 and author Mar-20 Jun-20 here Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Date here
Slide 20: Our ESG commitments – the future is now
20 Our ESG commitments – the future is now Environmental Social Governance • Creation of Group ESG committee to identify, develop • Support the communities in which the companies • To ensure the interests of the Company, and implement carbon reduction projects. operates through taking active involve
Slide 21: Strategy
21 Strategy Internal Enhancements • Continued focus on margin improvement and driving efficiencies:: - Continued implementation of margin enhancing - Objective to increase factory capacities and reduce projects across the Group. overhead cost per unit. - Capital machinery replacement programme to -
Slide 22: Summary – Outlook & Prospects
22 Summary – Outlook & Prospects Newhurst EfW Facility, Leicestershire • Structural steelwork market forecast to contract by 3.0% (following 11.7% growth in 2022) in 2023 before returning to growth in 2024 and 2025. • Power generation and some infrastructure sectors are forecast continued growth. •
Slide 23: Any Questions?
Presentation Any title here Questions? Subtitle and author here Appendix Date here
Slide 24: Statement of Financial Position
24 Statement of Financial Position “Strong asset backed Balance Sheet” £’000 31 December 2022 31 December 2021 Non-Current Assets 21,902 17,527 Current Assets 38,774 35,428 Total Assets 60,676 52,955 Current Liabilities (22,506) (21,705) Non-Current Liabilities (3,823) (1,858) Total Liabilities (26,
Slide 25: Cash Flow
25 Cash Flow “£11.6m Gross cash balance” £’000 31 December 2022 31 December 2021 Profit after tax 4,734 68 Net cash flow from operating activities 6,606 (1,956) Net cash flow from investing activities (4,572) (2,057) Net cash from financing activities (782) (799) Cash at beginning of period 10,382 1
Slide 26: Market Sectors
26 Market Sectors “Robust market in uncertain economic environment” Tonnes of Constructional Steelwork by Sector 1,000 Brexit uncertainty 900 800 700 Tonnes ('000's) 600 500 400 300 Covid-19 200 100 - Presentation 2013 2014 title 2015 here 2016 2017 2018 2019 Year 2020 2021 2022 2023 (proj) 2024 (pr
Slide 27: ESG – Environmental for 2023
27 ESG – Environmental for 2023 • Further transition to hybrid and electric vehicles. • HVO fuel trials ongoing. • Consideration of solar panel / wind electricity generation. • Green energy tariffs for new energy contracts. • LED lighting utilised at all office and factory facilities. • All timbers
Slide 28: Steel Manufacture – Raw Materials Trends
28 Steel Manufacture – Raw Materials Trends • Russia’s invasion of Ukraine in February 2022 triggered widespread uncertainty which continues to be felt within the • Prices peaked at a record high of $664/t in market and since resulted in gas price March 2022 volatility • Coal prices had dropped to $
Slide 29: Steel Manufacture – Energy Trend
29 Steel Manufacture – Energy Trend Presentation title here Subtitle and author here Source l Open Energy Market l 30th March 2023 Date here
Slide 30: Awards Success
30 Awards Success Newhurst EfW Facility 2022 Industrial Award Winner UK Tekla Awards The Glass Works, Barnsley 2022 Structural Steel Design Awards Shortlist Newhurst EfW Facility, Leicestershire Kentmere Ward Project 2022 Kier North West Specialist Supply Chain Partner Award for Hoard-it Shepperton
Slide 31: Board of Directors
31 Board of Directors Rebel X Secret Cinema, Wembley Ian Lawson Mark Smith Trevor Taylor Non-Executive Chairman Chief Executive Officer Chief Financial Officer Presentation titleAlexander Stephen Wardell hereOspelt John Gordon Non-Executive Director Non-Executive Director Non-Executive Director Subt
Slide 32: Contacts
32 Contacts Billington Holdings Plc finnCap Ltd IFC Advisory Limited Mark Smith, Chief Executive Officer Ed Frisby | Charlie Beeson | Tim Metcalfe | Graham Herring | Trevor Taylor, Chief Financial Officer Andrew Burdis | Barney Hayward Zach Cohen Tel: 01226 340666 Tel: 020 7220 0500 Tel: 020 3934 66
Slide 33: Disclaimer
33 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
Slide 34: Tel: +44 (0) 1226 Presentation title 340666
Tel: +44 (0) 1226 Presentation title340666 here Web: www.billington-holdings.plc.uk Subtitle and author here Date here