BILB.L Regulatory News (BILB)

13 November 2020

Bilby plc

("Bilby", the "Group" or the "Company") 

Trading update and Board restructure

Bilby Plc (AIM: BILB), a leading supplier of gas heating, electrical and building services, provides the following trading update for the six months ending 30 September 2020 ("the Period").

As with many businesses across the UK, the Group's focus during the first half of the year was to mitigate the impact of the Covid-19 pandemic as well ensure the safety and wellbeing of employees and customers. Bilby's swift response and flexibility at the start of the pandemic ensured the Group could still deliver for its clients under the UK Government's restrictions; where appropriate social distancing and protective measures were in place. During the pandemic, Bilby's employees responded positively to the challenges by working closely with customers providing regulatory compliance and critical repairs and maintenance works. The employees also demonstrated their strong commitment to the communities in which the Group operates with a range of voluntarily community support work.

Despite the challenges presented by Covid-19, Bilby has delivered a robust performance and demonstrated its resilience, tenacity and stability during this extraordinary period. As reported at the Full Year Results, the Group saw a drop in revenues during Q1 directly as a result of Covid-19 where Bilby employees could not safely access customer properties and certain elements of planned works were deferred. The nature of Bilby's services meant that the majority of the work was delayed rather than cancelled reflected by the 54% uptick in Q2 revenue versus Q1. As a result, Bilby is expected to report revenues of £23.4 million (H1 2020: £29.8 million) and an EBITDA, prior to the effect of IFRS 16 leases, of £1.5 million (H1 2019: £2.1 million), in line with the Board's expectations, for the Period.

Following the significant steps the Group took in the previous year to strengthen its balance sheet and improve its working capital position, the Group continued to focus on its cash generation and net debt position in the Period. As a result, the Group expects to report a 33% decrease of £2.3 million in net debt to £4.9 million from £7.2 million reported on 31 March 2020. Net cash at the Period end was £2.5 million, providing £5.0 million headroom against the overdraft facility.

During the Period, Bilby continued its efforts in driving further efficiencies and creating greater cohesion within the Group. This has resulted in exceptional restructuring costs of £0.4 million during the Period delivering an annualised cost saving of over £1 million. Elements of these cost savings are being reinvested to greater support future revenue generation and have already generated a positive impact on the business.

Since the arrival of David Bullen as CEO, Bilby has spent the majority of its time focused on essential restructuring and creating the required platform from which to drive sustainable, profitable growth. To ensure that this momentum continues, moving forward, Lee Venables (COO) will preside over the operational Board to continue to prioritise delivering operational excellence and Chris Webster will concentrate on his role as Managing Director of DCB Kent.

In turn, the Board is pleased to announce the appointment of a new non-executive director, Caroline Tolhurst, to sit alongside Sangita Shah and David Guest. Caroline is a Chartered Surveyor and Chartered Governance Professional with over 30 years' experience in the property and financial services industry. She is currently is a Non-Executive at Wynnstay Properties Plc, LocatED Property Limited and A2Dominion Housing Group Limited. Caroline will join the Board with effect from 1 December 2020.

The Board will therefore be reconstituted, effective 1 December 2020, to comprise of three non-executive directors and two executive directors; David Bullen (CEO) and Clive Lovett (Group FD), building on Bilby's goal to implement best corporate governance practices.

The Group will publish its Half Year Results for the six months ending 30 September 2020 on 1 December 2020.

David Bullen, Chief Executive Officer, of Bilby Plc, commented:

"During the Period, dominated by Covid-19, Bilby has gone above and beyond to ensure customers continued to receive our critical services and to support the communities we operate. As a result, we delivered a resilient performance which is testimony to the tenacity and stability of our business and a credit to our hard-working, flexible colleagues across the Group, who continued performing at high levels despite the challenging circumstances."

Sangita Shah, Chair, Bilby Plc, commented:

"I am delighted at the appointment of Caroline Tolhurst to the Board. After an extensive search, we feel that her skill set - industry know-how together with listed company experience - will significantly supplement the Board".

The following information is disclosed pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies in relation to Caroline Tolhurst, aged 59:

Caroline holds no ordinary shares in the capital of the Company.

Save as disclosed above there are no additional disclosures to be made in accordance with Rule 17 or Schedule Two paragraph (g) of the AIM Rules for Companies.

Enquiries

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.