(Alliance News) - Bilby PLC is healthy, the company said on Thursday, after a "robust" performance in a first half which saw a major reorganisation.
Shares were 23% higher on Thursday morning in London at a price of 25.00 pence each. However, they are still less than half of where they were in March, when they traded at 66.00p.
Last April, David Bullen was appointed as chief executive of the gas and electricity services firm. He accelerated a review of the business which led to a number of changes.
Waltham Abbey, London-based Bilby closed subsidiary P&R's gas division, put P&R's profitable building services contracts under the control of another unit, Purdy, and also standardised and centralised operating systems. P&R had been hurt by the cancellation of a UK Ministry of Defence contract and delays in a gas installation project.
These problems at P&R have now been solved, Bullen said on Thursday.
For the six months to September 30, Bilby posted a pretax profit of GBP542,000, down 51% from the year before, with revenue falling 18% to GBP29.8 million. Bilby said performance will be, as usual, weighted to the second half.
The company is paying no dividend, after returning 2.00 pence per share for the same period a year prior. This is because of Bilby's debt levels, after it posted a loss in its last financial year ended March. It had net debt of GBP11.1 million on September 30, up from GBP7.9 million a year before.
"This has been a period of restructuring for the group in which we finally resolved the legacy issues relating to P&R and continued the operational and financial review that collectively has achieved a positive reset for the group," said CEO Bullen.
"We have taken the positive steps to improve our levels of transparency and efficiency, as well as engaging staff at all levels to shape the future of the organisation."
"This will ensure each subsidiary benefits from being part of a wider group and will accelerate the trajectory of our future growth path. I am confident the actions we have taken, and continue to undertake, will ensure Bilby is best placed to capitalise on opportunities moving forward," Bullen continued.
Bilby is confident of "at least" maintaining underlying revenue for its full-year at GBP59 million, with underlying earnings before interest, tax, depreciation, and amortisation of a minimum of GBP4.5 million.
In its previous financial year, Bilby posted underlying revenue of GBP69.6 million, and underlying Ebitda of GBP3.2 million.
By George Collard; georgecollard@alliancenews.com
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