1 Nov 2016 10:07
1 November 2016
Bilby Plc ("Bilby" or the "Group")
Trading Update
Bilby Plc (AIM: BILB.L), the holding company for P&R Installation Company Limited, Purdy Contracts Limited, Spokemead Maintenance Limited ("Spokemead"), and DCB (Kent) Limited ("DCB"), a group of companies that provide gas heating, electrical and building services, gives the following trading update.
The Group is pleased to announce that the businesses acquired since the financial year end have continued to trade ahead of expectations. Spokemead and DCB have both met their earn out performance conditions for the periods to 30 June 2016 and 31 March 2016 respectively. The integration of these businesses is now largely complete. The Group continues to benefit from the subsequent critical mass required to tender for larger contracts as well as the ability to cross-sell services now available within the Bilby Group. The Board is also pleased to note that companies within the Group are already working together on joint projects for new and mutual customers.
However, a long standing and major public sector customer of the Group has, during the period, changed the processes by which they manage their outsourced building services work. This has resulted in both delays to expected work and certain work being taken in house by the customer. The Group is confident that this development is no reflection of any change to Bilby's highly regarded reputation for operational excellence nor any wider market trend. Nevertheless, as a result of the above, and certain other additional costs incurred by the Company in the first half of the financial year, the Board has revised down its financial expectations for the financial year ending 31 March 2017 with revenue expected to be impacted by approximately 10 per cent. and EBITDA by approximately 25 per cent.
The Board continues to strongly believe that the opportunities for the Bilby Group in social housing remain very strong especially in its targeted geographical locations, namely London and South East England. This confidence is underpinned by newly awarded contracts throughout the Group that continue to extend Bilby's range of services and client base, firmly establishing its building services division alongside the market-leading gas, plumbing and drainage services on which the business was founded.
This announcement contains inside information.
Enquiries:
Bilby Plc 020 8269 3777
Phil Copolo, Deputy Executive Chairman
Katie O'Reilly, Finance Director
Cenkos 020 7397 8900
(Nominated Adviser and Broker)
Bobbie Hilliam
Hudson Sandler 020 7796 4133
(Financial PR)
Charlie Jack
Emily Dillon