(Alliance News) - Billington Holdings Ltd on Tuesday said it is "well placed to deliver a strong performance" this year despite enduring economic uncertainty.
The Barnsley, England-based structural steel and construction safety specialist on Tuesday released results for 2023.
Pretax profit more than doubled, increasing to GBP13.4 million from GBP5.8 million. Revenue grew by 53% to GBP132.5 million from GBP86.6 million.
Billington acknowledged, however, that these figures were somewhat flattered by a softening in steel prices during the early months of 2023, before stablising over the remainder of the year.
Billington also declared a final dividend of 33.00 pence per share, up from 15.50p. The company said this should be viewed as an ordinary dividend of 20.00p with an exceptional amount added for performance.
"Net cash increased by GBP11.2 million to GBP22.1 million, with all borrowings now paid. This is a strong position compared with many in the sector, and supports internal growth opportunities," said Cavendish analysts.
Looking ahead, the company's management continues to analyse potential acquisitions where they find opportunities to expand capacity and diversify its operations.
With structural steel accounting for 92% of sales in 2023, the company is susceptible to changes in the construction industry.
Management recognised the possibility of a return to higher steel prices and acknowledged that if interest rates fail to come down over the year, the industry may struggle.
However, the company continues to hedge its steel requirements and after being awarded contracts over the next two years with a combined value of GBP90 million, it said management remains confident in the company's future.
On the back of the company's compelling order book analysts at Cavendish upgraded their 2024 revenue forecasts by 8.7% to GBP125 million and predict an adjusted profit before tax of GBP8.5 million.
Billington shares were up 1.2% to 496.00 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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Billington (BILN)