Billington Holdings Plc · LSE:BILN
Billington — FY2020 Earnings Presentation
30 slides from Billington's earnings presentation, April 2021
Slide 1: Results for the 12 months ended 31 December 2020
Results for the 12 months ended 31 December 2020 April 2021
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 Landmark, Manchester • Billington Holdings Plc is a leading UK structural steel and construction safety solutions specialist. • The Company is the third largest steel fabricator in the UK. • The Group has shown good resilience during this unprecedented period. • Turnover has reduced as
Slide 4: Group Operating Divisions
Group Operating Divisions Billington Structures Ltd Peter Marshall Steel Stairs Ltd A nationally recognised and award-winning steelwork A specialist company principally engaged in the design, contractor, with over 70 years’ experience. Plants in fabrication and installation of highly engineered Barn
Slide 5: Overview
Overview • Capital expenditure projects are now being executed following a period of review during the pandemic. Further projects are planned for 2021. • Expansion of the Group’s service offering through continued investment at the Shafton facility. • Resilient trading for all Group divisions. • Est
Slide 6: Group Structure
Group Structure Structural Steel Safety Solutions 6
Slide 7: Investor Relations
Investor Relations London (AIM) Share Price Ordinary Shares in issue (No.) Market Cap. (GBP, millions) Major Shareholders BILN 342.00p 12,934,327 44.24 Gutenga Investments PCC Ltd 36.4% as of 08/04/2021 Close Brothers 12.8% Ocorian Trustees Ltd 6.5% Otus Capital 7.9% Ruffer LLP 5.0% GPIM 5.11% Advis
Slide 8: 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 (FRICS) and the Chartered Stephen is a member of the Institute of Chartered Accountants in England & Wales Institute of Building (FCIOB) and
Slide 9: Structural Steel Market Trend Graph
Structural Steel Market Trend Graph UK Consumption of Constructional Steelwork - 2000-2023 1,500 1,400 1,300 Tonnes (000's) 1,200 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 2021 2022 2023 Tonnes - actual Tonnes
Slide 10: The Steel Industry
The Steel Industry • Chinese steel manufacturing giant Jingye Group has completed its acquisition of British Steel in March 2020. The deal safeguards around 3,200 jobs and will pave the way for a £1.2bn investment in the business. • £100m initial investment has now been committed and will finance a
Slide 11: Steel Manufacture – Raw Material Trends
Steel Manufacture – Raw Material Trends IRON ORE PRICES HAVE FALLEN SLIGHTLY TO COKE PRICES AT HISTORIC HIGH PRICE LEVELS $164.4/T AFTER JANUARY’S ALL-TIME HIGH BOS COSTS AND SCRAP PRICES CONTINUE AT HIGH LEVELS & GLOBAL SUPPLY REMAINS DISCLOCATED SCRAP PRICES HAVE RISEN TO $455/T, AFTER LAST MONTH’
Slide 12: Financial Review for the 12 Months Ended 31 December 2020
Financial Review for the 12 Months Ended 31 December 2020 April 2021
Slide 13: Highlights
Highlights The Glass Works, Barnsley • Full portfolio of contracts continue to be delivered in line with contractual obligations not withstanding difficulties experienced with Covid-19 restrictions. • Excellent performance within the safety solutions division of the Group. • Resilient performance fr
Slide 14: Results Overview
Results Overview Earls Gate EFW, Grangemouth • Record share price of 445p (13 February 2020) prior to impact of Covid-19. • Areas of diversification have been identified and plans currently being developed. • Robust financial position of the Group allows opportunities to be capitalised as they arise
Slide 15: Five Year Summary
Five Year Summary Revenue (£m) Net Assets (£m) Profit Before Tax (PBT) (£m) 120 104.9 35 7 28.1 29.2 5.9 100 30 6 23.5 4.9 73.5 77.3 22 4.4 25 5 80 63.3 66.0 18.8 3.8 20 4 60 15 3 40 1.7 10 2 20 5 1 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Earnings Before Inte
Slide 16: Financial Summary
Financial Summary Revenue - £m Profit Before Tax - £m 120 7.0 6.0 100 5.0 80 57.8 3.20 4.0 60 37.9 3.0 2.2 39.2 3.0 33.2 2.1 36.2 40 32.2 1.4 23.8 2.0 20.4 47.1 1.1 2.7 20 39.4 2.2 1.1 34.3 32.8 1.0 1.9 24.6 27.1 1.7 1.7 17.2 21.3 0.5 0.8 0.6 0 - 0.3 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014
Slide 17: Financial Summary
Financial Summary 12 months to 12 months to £’000 31 December 2020 31 December 2019 Revenue 65,955 104,911 Total costs (excluding depreciation) 62,385 97,161 EBITDA 3,570 7,750 Depreciation 1,911 1,814 Group operating profit 1,659 5,936 Net finance income/(costs) 8 (5) Profit before tax 1,667 5,931
Slide 18: Balance Sheet
Balance Sheet £’000 31 December 2020 31 December 2019 Non-Current Assets 16,219 16,456 Current Assets 33,340 33,548 Total Assets 49,559 50,004 Current Liabilities (18,866) (21,724) Non-Current Liabilities (1,476) (187) Total Liabilities (20,342) (21,911) Net Assets 29,217 28,093 18
Slide 19: Cash Flow
Cash Flow £’000 31 December 2020 31 December 2019 Profit after tax 1,369 4,796 Net cash flow from operating activities (1,783) 7,182 Net cash flow from investing activities (1,922) (1,410) Net cash from financing activities (394) (2,023) Cash at beginning of period 17,856 9,311 Cash at end of period
Slide 20: Forward Order Book
Forward Order Book Forward Order Book - Sales to Invoice £m - Order Book 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 Mar-18 Jun-18 Dec-18 Mar-19 Jun-19 Dec-19 Mar-20 Jul-20 Sep-20 Dec-20 Mar-21 20
Slide 21: Divisional Turnover Breakdown
Divisional Turnover Breakdown 2020 Divisional Breakdown 2019 Divisional Breakdown 6% 3% 5% 2% 4% 5% 3% 5% 81% 86% Billington Structures easi-edge Marshall Steel Stairs hoard-it Shafton Billington Structures easi-edge Marshall Steel Stairs hoard-it Shafton 21
Slide 22: Divisional Highlights – Billington Structures Ltd
Divisional Highlights – Billington Structures Ltd Sandwell Aquatics Centre, Birmingham Castlepoint Car Park, Bournemouth Recent Projects: • All England Lawn Tennis Club, Wimbledon – Willmott Dixon Construction • Project Einstein, Peterborough – TSL Projects Ltd • Sandwell Aquatics Centre, Smethwick
Slide 23: Divisional Highlights – Peter Marshall Steel Stairs Ltd
Divisional Highlights – Peter Marshall Steel Stairs Ltd Old Granada Studios, Manchester Amazon Fulfilment Centre, Swindon Recent Projects: • Virtus 9, Uxbridge – Mercury Engineering • Old Granada Studios, Manchester – Bowmer & Kirkland Ltd • Battersea Power Station – William Hare • Ocado Distributio
Slide 24: Divisional Highlights – easi-edge Ltd
Divisional Highlights – easi-edge Ltd Dock 5, Salford Project Cornbrook, Manchester Recent Projects: • Cornbrook, Manchester - ISG Construction • Dock 5, Ordsall Lane, Salford - Bridgestone Construction • Milburngate, Durham - Tolent Construction Milburngate, Durham • S1 Kings Cross, London - Elland
Slide 25: Divisional Highlights – hoard-it Ltd
Divisional Highlights – hoard-it Ltd Anfield, Liverpool Nightingale Hospital, Glasgow Recent Projects: • Pinewood Studios, Slough – Sir Robert McAlpine • Swindon Radiotherapy Centre, Swindon – John Sisk & Son • Prince Charles Hospital, Merthyr Tydfil – Interserve Pinewood Studios, Slough • Anfield,
Slide 26: Divisional Highlights – Shafton Steel Services
Divisional Highlights – Shafton Steel Services Services include: • Oxy Gas & HD Plasma Profiling • CNC Plate Drilling • Bevel Head Plasma Profiling • Shear Punch Drill Fittings • Shotblasting & Primer Painting • Section Sawing & Section Drilling • Plate Girder Manufacture 26
Slide 27: Awards
Awards The Glass Works, Barnsley • Billington Structures Ltd won the Sports and Recreation Projects Award at the 2020 UK Tekla Awards for The Glass Works, Barnsley. • Billington Structures also won the Public Vote at the 2019 UK Tekla Awards for multiple plots at Wellington Place in Leeds. • London
Slide 28: Summary – Outlook & Prospects
Summary – Outlook & Prospects TK Maxx, Watford • New investment has lead to the expansion of inhouse value added services at the Shafton facility. • Expansion of the graduate and apprentice programmes in 2021. • Opportunities for diversification remain under review. • Robust balance sheet underpinne
Slide 29: Contacts
Contacts Billington Holdings Plc: Tel: 01226 340 666 Mark Smith, Chief Executive Officer Web: www.billington-holdings.plc.uk Trevor Taylor, Chief Financial Officer Social: @BillingtonSteel W H Ireland Limited: Tel: 020 7220 1666 Chris Hardie James Sinclair-Ford Jasper Berry IFC Advisory Limited: Tel
Slide 30: Tel: +44 (0) 1226 340 666 | Web: www.billington-holdings.plc.uk
Tel: +44 (0) 1226 340 666 | Web: www.billington-holdings.plc.uk 30