Billington recently released a very positive ½ year report.
Billington operates through 6 business units
-Billington Structures. This is the biggest division and as the name suggests does Steelwork structures
-Easi-Edge. Temporary edge protection systems.
-Peter Marshall Steel Stairs. Provider of steal staircases. (It is at this point that you should realise Billington is a big fan of the clue is in the name).
-Tubecon. Architecturally exposed steel and other complex structures.
-Hoard-It. Re-use temporary hoardings.
-Shafton Steel Services. Steel services and processing.
Following the results the mkt cap of the company is about £43m. The share price at the time of writing is £3.33
Group Sales for the 6 months were up 19.7% YoY at £47.15m
Profit before tax was £2.7m up 38%.
EPS at 17.8p up 39%.
Cash at £10m up 32% and 7.5% since Dec 2018.
All divisions have a strong current Order Book and in the report all divisions were expected to maintain or increase the Order Book level over the next 6 months. This is with the existing order book being delivered to schedule. So strong sales for the next period.
Capital Expenditure plans are ongoing but the business is expected to be cash generative over the next 6 month period. Net Assets are at £24.6m with £15.8m of this being for long term assets. But there are no intangible assets.
For my portfolio the company has a relatively high Price to NTAV but it is a very solidly run business with genuine assets.
Management address a number of times in the report that Brexit and other business concerns make predicting the future difficult, but I think it is fair to say that they are managing that which is under their control well.
The accounts are very clear and easy to read and understand with none of the "adjusted" or "underlying" rubbish you see in a lot of company pronouncements. The only deviance from this was using and EBITDA figure in the headline reporting. Given this business is built around large factories and significant capital programmes removing the Depreciation is too my mind slightly worrying. Makes me wonder if they are prepared to float this nonsense are they being open with everything else?
That said I am happy to be a holder and BILN is definitely into consideration for an add.