Billington Regulatory News (BILN)

RNS Number : 6639L

Billington Holdings PLC

11 May 2010

 

Press Release 11 May 2010

Billington Holdings Plc

 

("Billington" or "the Group")

 

 Full Year Results

 

Billington Holdings Plc (AIM:BILN), one of the UK's leading structural steel and engineering specialists, announces audited full year results for the year ended 31 December 2009.

	2009	2008
Revenue	£57.2 million	£60.0 million	-4.7%
Profit before tax from continuing operations	£5.3 million	£4.1 million	+28.7%
Overall profit for the year *	£1.6 million	£3.3 million	-52.2%
Year end cash balance	£8.5 million	£4.0 million	+113.3%
Earnings per share from continuing operations	32.9 pence	22.3 pence	+47.5%
Total dividend payment	10.0 pence	11.5 pence	-13.0%

*(taking into account a non-recurring loss of £1.5 million associated with the disposal of non-core assets)

Highlights

·; Strong and profitable set of results in challenging conditions and in line with market expectations with an overall profit on trading of £3.1 million

·; Corporate restructuring complete with the disposal of non-core, loss making Dosco Overseas Engineering Limited and its subsidiary Hollybank Engineering Company Limited for a cash consideration of £1.8 million

·; Pension deficit reduced from £5.2 million to £0.2 million

·; Strengthened balance sheet and doubled cash position

·; Award of prestigious Cafe Royal site in London's Piccadilly

·; Increased focus in the private sector resulting in decreased exposure to the public sector

Commenting on the results, Peter Hems, Executive Chairman of Billington Holdings, said: "I am delighted at the Group's strong performance for the year. Our expertise and reputation is second to none and has played an integral part in our achievements throughout the year. Despite challenging market conditions, we have remained profitable and doubled our cash position. The disposal of our loss making non-core assets, Dosco and Hollybank, allows us to focus on our main business of structural steel and building safety systems. "

 "We have continued to build our presence in the health, defence and education markets and are particularly pleased with our progress with private sector clients including supermarkets. Our forward order book has improved and the increased visibility this gives us means we are cautiously optimistic about our prospects in 2010. I believe the Group is well placed to exploit any market opportunities that arise throughout 2010 and beyond."

 

For further information please contact:

Billington Holdings plc	Tel: 00 44 1226 340666
Peter Hems
Executive Chairman
Steve Fareham
Chief Executive
Blythe Weigh Communications Mobile: 07816 924626/07980 321505/07917 800011	Tel: 00 44 20 7138 3204
Tim Blythe, Ana Ribeiro, Matthew Neal
Brewin Dolphin Investment Banking	Tel: 00 44 845 270 8610
Andrew Emmott

 

Chairman's Statement

Introduction

 

I am pleased to report on the full year results for Billington Holdings Plc for 2009 with profit after tax from continuing operations showing an increase of 47.5% from £2.6 million to £3.8 million. On 4 May 2010 the Group announced the disposal of Dosco Overseas Engineering Limited and Hollybank Engineering Company Limited, which were considered to be non-core activities for the Group. This now completes the programme of disposals, leaving the Group to focus on the development of its core businesses, Billington Structures and easi-edge, with adequate resources and without the substantial potential risk associated with the pension liabilities of the exiting businesses.

 

Results

 

The profit for the year from continuing operations amounted to £3.8 million on revenue of £57.2 million compared with a profit of £2.6 million on revenue of £60.0 million in the previous year. The loss for the year attributable to discontinued activities amounted to £0.7 million compared with a profit the previous year of £1.0 million. This results in an overall profit on trading for the current year of £3.1 million, which is in line with market expectations. The disposal of non-core assets gave rise to a £1.5 million non-recurring loss reflecting the write down of the assets to fair value. This brings the overall profit for the year to £1.6 million compared with £3.3 million for the previous year.

The overall earnings per share for the year amounted to 13.5p (2008: 28.2p) whereas the figures for continuing activities showed an increase to 32.9p (2008: 22.3p).

The Disposal of Dosco and Hollybank

We announced on 4 May 2010 the disposal of Dosco Overseas Engineering Limited ("Dosco") and its subsidiary Hollybank Engineering Company Limited ("Hollybank") for a cash consideration of £1.8 million to SMT Scharf AG.

The Dosco business consists of the design and manufacture of underground tunnelling equipment for the worldwide mineral extraction industry. This business was affected particularly badly by the economic downturn and there was very little activity during 2009 both in terms of orders and enquiries.

Hollybank supplies underground roadway supports to the UK mining industry and has continued to trade satisfactorily throughout the period.

The combined results of the two businesses showed a operating loss of £0.5 million on revenue of £12.9 million for 2009 as compared with a £1.2 million profit on revenue of £17.0 million in the previous year.

The net assets of the exiting group amounted to £3.1 million after taking into account the pension liabilities (net of deferred tax) of £5.2 million. The Dosco business is a capital goods business operating internationally within the mining industry. The volatility of its activity levels mean that its working capital requirement can fluctuate dramatically depending on its workload. This, coupled with the liabilities attached to its final salary pension scheme, is such that the Board concluded that disposal was the preferred course of action.

Pension schemes

 

The sale of Dosco marks a significant change in the Group's pension liabilities. The sale includes all of the Dosco and Hollybank pension schemes recognised in the balance sheet as a liability of £5.2 million including deferred tax, comprising assets of £37.8m and liabilities of £45.0 million netted by £2.0 million deferred tax. The remaining defined benefit pension scheme shows a deficit of just £0.2 million. The sale significantly strengthens and simplifies the Group's balance sheet and operating cash flows will benefit from a reduction in pension contributions from £1.6 million in 2009 to £0.4 million for the remaining scheme in 2010.

 

Dividend

 

The Board proposes to pay a dividend of 6.75 pence per share on 5 July 2010 to shareholders on the register on 4 June 2010. This will make a total dividend payable in relation to the 2009 trading results of 10.0 pence. Challenging market conditions have resulted in a small reduction in the level of the dividend as compared with recent years. However, Billington is committed to paying a dividend to shareholders and intends to maintain this level of dividend over the near term unless there is a further deterioration in trading conditions.

Liquidity and Capital Resources

 

The Group had cash balances of £8.5 million at 31 December 2009, which provides adequate funds to cover both the projected working capital requirements of the ongoing businesses and capacity to finance the future development of these businesses as and when appropriate opportunities are identified.

Prospects

 

Current trading is challenging and it is difficult to forecast what the outcome will be for 2010. 2010 profits will be supported to some extent by profits on contracts, not yet considered complete, which were won at better margins back in 2009. However, based on margins currently being achieved 2010 will remain challenging. The level of enquiries for Billington Structures is holding up to date, but the margins at which work can be won are at much lower levels than have been achieved in recent years. The Group is looking to increase the activity levels of the safety solutions business with its established easi-edge barrier systems and the new innovative hoard-it sustainable fencing system, which is making good progress. However these activities are coming from a relatively small base and are unlikely to make a significant contribution to Group results in the current year. The likelihood is therefore that we will be showing a substantially reduced result for 2010, even after having taken measures to reduce costs with overhead savings, pay reductions and part time working.

The disposal of our loss making non-core assets has freed us from the substantial pension liabilities attached to the exiting businesses. Our strong balance sheet provides the Group with a degree of security in the current difficult market conditions and we are well placed to exploit any market opportunities that arise when our markets begin to improve.

Management and workforce

I should like to express my thanks to all the directors and employees for their efforts and assistance in 2009. I look forward to working with the continuing team to achieve future success and wish those departing with the exiting businesses every success for the future.

 

Peter K Hems

Executive Chairman

10 May 2010

 

 

Billington Holdings Plc

Operational Review 2009

Despite the unprecedented deterioration in the structural steelwork sector during 2009 the Group continued to return good results. Increasingly through the year, the Board sought ways of reducing capacity and costs, improving efficiencies and developing a more focussed market strategy, whilst continuing to create innovative solutions and deliver them safely to the highest possible standards of client satisfaction. We are the steelwork contractor and safety solutions provider of choice to a wide range of major contractors and end users.

Billington Structures

In excess of 25,000 tonnes of structural steel was supplied and erected during 2009 to a wide variety of UK projects. The company has continued to build on its presence in the health, defence and education markets. We are particularly pleased with our progress with private sector clients including supermarkets. Highlights included:

·; Completion of the Royal Shakespeare Company's landmark theatre at Stratford upon Avon.

·; Completion of Merchant Square, a signature architectural multi-storey project in Paddington, London.

·; Academies and/or schools in Barnsley, Manchester, Birmingham, Luton, Greenwich and Salford.

·; Hospital extensions in Bedford, Blackpool, Burnley and Pembury.

·; Supermarket and retail extensions in a variety of locations across the UK.

·; Various ongoing involvements with Debut's military SLAM schemes, now in year 7 of a 10 year programme and other defence related installations.

·; The award of the prestigious Cafe Royal site in London's Piccadilly where we will be on site throughout 2010.

·; A major cold store in Wisbech.

·; A significant extension to Bristol airport.

 

easi-edge

easi-edge remains the number one supplier of steel barrier edge protection systems to the UK steel contracting industry, and continues to develop its range of innovative safety and security systems for the wider construction industry. 

The year saw the launch of 'hoard-it', a new division to develop and promote its unique and patent pending site security hoarding system. A warehouse and offices have been acquired and are currently being refurbished near to our Barnsley HQ, to house this new division. Several important installations have already taken place and the product was awarded the 'best site safety award' by Builder and Engineer Magazine.

Further diversification came with our entry into edge protection for the structural timber market, with major installations being developed for Kier Eastern on the Open Academy and University of Anglia.

Our core-safe lift shaft protection gate is increasingly specified. At the major Media City project in Salford Quays over 85 gates are currently installed. 

People

The year was a difficult year in many respects for our employees with the general economic uncertainties and resulting essential changes within the business to ensure that we remain world class. We continued to encourage training at all levels and communication on a team and individual level was increased. Our charity off-road bike ride took place in late autumn where some 24 participants raised in excess of £10,000 as a donation to our late Commercial Manager's supported charity, a local South Yorkshire scout group.

Involvement in our respective Trade Associations BCSA, TRADA and EPF was encouraged, together with links to Universities, Professional Institutions, Chambers of Commerce and the local communities.

Health, Safety, Sustainability and the Environment

The underpinning ethos of the Group is to provide and develop our health, safety and environmental standards.

As always, there has been considerable time and effort put in over the last year, by both management and the workforce, to continually improve health and safety standards throughout the Group and into our supply chain. It was pleasing to note that no major incidents occurred to any of our employees during the year.

Certification, verified by external audits, to the highly regarded OHSAS 18001 was reconfirmed to both Billington Structures and easi-edge. We continue to operate an integrated quality and environmental management system, which is externally certified to ISO 9001 and ISO14001.

Conclusion

Our strong trading activity during 2009 has further emphasised our robustness and strategic positioning in the UK market place. This, combined with our technical and financial strength, will stand us in good stead to face the economic challenges of 2010. We believe 2010 will be the bottom of the economic cycle for structural steelwork and this, combined with pressure from competitors and predicted raw material increases, will undermine our profitability.

Steve Fareham

Chief Executive

10 May 2010

 

Financial Review

Results for the Year

The profit before tax for the year from continuing operations was £5.3 million (2008: £4.1 million) 28.7% higher. This was achieved on revenue of £57.2 million (2008: 60.0 million).

Profit after tax from continuing operations was £3.8 million. However the profit attributable to equity holders was reduced by the losses made by the discontinued operations of £0.7 million and by the loss on the difference between the net proceeds from the disposal and the net book value at the year end of the business disposed, which totalled £1.5 million. The resulting profit for the year attributable to equity holders was £1.6 million (2008: £3.3 million).

Continuing and Discontinued Operations

The continuing operations consist of the structural steel business of Billington Structures Limited, the safety solutions business, easi-edge Limited, and Group activities which are mainly administration, fleet and property management for the two remaining trading companies.

The trading businesses within the discontinued operations consisted of Dosco Overseas Engineering Limited ("Dosco") and Hollybank Engineering Company Limited ("Hollybank"). In the segmental analysis contained in previous years' accounts, Dosco formed the Engineering segment whereas Hollybank's results were subsumed within Structural Steel.

In the segmental analysis within these accounts Dosco and Hollybank have been combined under Discontinued Operations and the 2008 comparatives have been re-stated. The 2008 numbers have been made more complicated because Discontinued Operations in that year also includes three months trading from the businesses sold in April 2008, as detailed in the 2008 accounts.

Continuing Operations

Structural Steel

Total Group revenue dropped by 4.7% to £57.2 million (2008: £60.0 million), but operating profit increased by 39.3% to £5.2 million (2008: £3.8 million). The structural steel business of Billington Structures is by far the largest component of this segment and these results largely reflect those of Billington Structures. Revenue was only partly affected in 2009 by the very large downturn in construction activity as the business was largely insulated by its forward order book. The full effects of the downturn will only become apparent in 2010. The forward order-book was also responsible for the excellent profit performance; most contracts completed in 2009 and profits therefore taken, although these were won in 2007 and 2008, when prices were much better. Steady progress was made at easi-edge; its revenue held up in spite of the construction industry downturn and good progress was made in developing a new hoardings product, which will contribute to revenue in 2010.

 

Discontinued Operations

Dosco endured a very difficult year. There was a lack of spending by its principal overseas customers. It suffered because an order, which was to provide its main workload, was suspended at the start of the year and it failed to win a single new order.

In consequence, the business made a substantial loss and underwent two redundancy exercises. Hollybank, on the other hand, enjoyed a relatively good year, demand holding up reasonably well from its principal customer, UK Coal, and it made a similar operating profit in 2009 to that made in 2008.

The two businesses combined made an operating loss of £0.5 million on revenue of £12.9 million. This increased to a loss before tax of £0.8 million, mainly because of finance costs associated with the final salary pension scheme that both companies jointly sponsor.

Taxation

The tax charge in the year, on continuing operations, of £1.5 million equated to an effective rate of 28.5% on the Group's profits.

The equivalent rate in 2008 was 32.5%, which was higher that year because of tax charged in respect of the Employee Share Ownership Programme (ESOP).

Profit and Dividends per Share

Earnings per share from continuing operations were 32.9p in 2009, compared with 22.3p in 2008. The equivalent earnings, including the losses associated with the discontinued operations, were 13.5p compared with 28.2p.

The Group paid an interim dividend of 3.25p per share in respect of the results for 2009.

A final dividend of 6.75p is proposed in respect of the 2009 results, which would bring the total dividend for 2009 to 10p per share. This compares with the total dividend in respect of the 2008 results of 11.5p per share. Dividend cover, calculated on the combined profit of the continuing and discontinued businesses, is similar for both years.

Balance Sheet

Shareholders' funds reduced by £0.8 million in the year, as a consequence of the write-down of the carrying value of the businesses subsequently disposed of.

Property, plant and equipment reduced by £2.1 million to £8.1 million in the year. The movement consisted of additions totalling £1.7 million, depreciation of £1.1 million, a write-down of the assets of the discontinued operations of £2.5 million and other disposals of £0.2 million. The Tuxford property accounted for by far the largest proportion of the assets of the discontinued operations.

Total assets fell by £7.1 million to £35.0 million, of which £9.2 million was the net value of assets in the disposal group classified as held for sale. This net value consisted of total assets of £10.7 million less the loss on measurement to fair value of £1.5 million.

Total liabilities reduced by £6.3 million to £20.3 million. Included in the liabilities was £7.6 million in respect of the disposal group. This was made up of £5.2 million pension scheme liabilities and £2.4 million trade and other payables.

Cash Flow

The Group had cash balances of £8.5 million at the balance sheet date, an increase in funds of £4.5 million during the year. £7.2 million was generated from operations. Outflows included £1.7 million of capital expenditure, the principal item of which was the purchase of a workshop and land on a site adjoining the Wombwell factory, which will be used for the new hoarding business being created by easi-edge. Outflow also included dividend payments of £1.3 million.

Pension Scheme

The deficit on Group final salary pension schemes has reduced, after the provision for deferred tax, from £5.1 million in 2008 to £0.2 million in 2009. The reduction is principally as a result of the disposal of Dosco and Hollybank. The gross assets of the Group schemes were £4.6 million at the year end and liabilities were £4.8 million compared with £36.0 million and £43.1 million in 2008.

The charge to the income statement in respect of financing costs of the pension scheme has reduced from £0.2 million in 2008 to £9,000 in 2009 for the continuing operations.

Cash contributions to the final salary scheme will reduce by £1.2 million in 2010, from £1.6 million in 2009 to £0.4 million.

Agreement on a recovery plan was reached with the trustees of the Billington Final Salary Scheme, following an actuarial valuation of the scheme liabilities as at 12 August 2008, in accordance with the requirements of the Pensions Act.

Peter Hart

Financial Director

10 May 2010

 

BILLINGTON HOLDINGS PLC
Consolidated income statement for the year ended 31st December 2009
						Note	2009					2008
							£'000		£'000			£'000		£'000
Continuing operations
Revenue									57,177					59,998
(Decrease)/increase in work in progress									(1,018)					1,030
									56,159					61,028
Raw materials and consumables							34,539					40,734
Other external charges							1,373					1,846
Staff costs							13,429					12,578
Depreciation							1,124					1,341
Other operating charges							445					760
									(50,910)					(57,259)
Group operating profit									5,249					3,769
Net finance income									99					369
Other finance cost - pension scheme									(9)					10
Profit before tax									5,339					4,148
Tax									(1,524)					(1,561)
Profit for the year from continuing operations									3,815					2,587
Discontinued operations
(Loss)/profit for the year from discontinued operations									(684)					961
Loss on disposal of discontinued operations									0					(279)
Loss on measurement to fair value less costs to sell of discontinued operations									(1,567)					0
Profit for the year attributable to equity holders of the parent company									1,564					3,269
Earnings per share (basic and diluted) from continuing operations						3			32.9 p					22.3 p
(Loss)/earnings per share (basic and diluted) from discontinued operations						3			(5.9) p					8.3 p
Earnings per share (basic and diluted) from continuing and discontinued operations						3			13.5 p					28.2 p

 

BILLINGTON HOLDINGS PLC
Consolidated statement of comprehensive income for the year ended 31st December 2009
										2009					2008
										£'000					£'000
Profit for the year										1,564					3,269
Other comprehensive income
Actuarial gain/(loss) recognised in the pension schemes - continuing										59					(612)
Actuarial loss recognised in the pension schemes - discontinued										(1,529)					(1,085)
Movement on deferred tax relating to pension liability - continuing										(107)					218
Movement on deferred tax relating to pension liability - discontinued										195					196
Current tax relating to pension liability - continuing										91					(60)
Current tax relating to pension liability - discontinued										234					191
Other comprehensive income, net of tax										(1,057)					(1,152)
Total comprehensive income for the year attributable to equity holders of the parent company										507					2,117

 

BILLINGTON HOLDINGS PLC
Consolidated balance sheet as at 31st December 2009
								2009					2008
								£'000		£'000			£'000		£'000
Assets
Non current assets
Property, plant and equipment										8,082					10,234
Deferred tax assets										707					2,129
Total non current assets										8,789					12,363
Current assets
Inventories and work in progress								5,668					13,623
Trade and other receivables								2,963					12,149
Cash and cash equivalents								8,488					3,979
Total current assets										17,119					29,751
Assets included in disposal group classified as held for sale										9,132					0
Total assets										35,040					42,114
Liabilities
Current liabilities
Trade and other payables								11,346					19,212
Current tax payable								1,199					276
Total current liabilities										12,545					19,488
Liabilities included in disposal group classified as held for sale										7,562					0
Non current liabilities
Pension liabilities								159					7,083
Total non current liabilities										159					7,083
Total liabilities										20,266					26,571
Net assets										14,774					15,543
Equity
Share capital										1,293					1,293
Share premium										1,864					1,864
Capital redemption reserve										132					132
Other reserve										(901)					(899)
Accumulated profits										12,386					13,153
Total equity										14,774					15,543

 

BILLINGTON HOLDINGS PLC
Consolidated statement of changes in equity for the year ended 31st December 2009
				Share capital		Share premium account				Capital redemption reserve					Other reserve - ESOP						Accumulated profits				Total equity
				£'000		£'000				£'000					£'000						£'000				£'000
At 1st January 2008				1,293		1,864				132					(1,310)						12,778				14,757
Dividends				0		0				0					0						(1,305)				(1,305)
Adjustment to ESOP in respect of discontinued activities				0		0				0					437						(437)				0
ESOP movement in year				0		0				0					(26)						0				(26)
Transactions with owners				1,293		1,864				132					(899)						11,036				13,426
Profit for the financial year				0		0				0					0						3,269				3,269
Other comprehensive income
Actuarial loss recognised in the pension schemes				0		0				0					0						(1,697)				(1,697)
Income tax relating to components of other comprehensive income				0		0				0					0						545				545
Total comprehensive income for the year				0		0				0					0						(1,152)				(1,152)
At 31st December 2008				1,293		1,864				132					(899)						13,153				15,543
				Share capital		Share premium account				Capital redemption reserve					Other reserve - ESOP						Accumulated profits				Total equity
				£'000		£'000				£'000					£'000						£'000				£'000
At 1st January 2009				1,293		1,864				132					(899)						13,153				15,543
Dividends				0		0				0					0						(1,274)				(1,274)
ESOP movement in year				0		0				0					(2)						0				(2)
Transactions with owners				1,293		1,864				132					(901)						11,879				14,267
Profit for the financial year				0		0				0					0						1,564				1,564
Other comprehensive income
Actuarial loss recognised in the pension schemes				0		0				0					0						(1,470)				(1,470)
Income tax relating to components of other comprehensive income				0		0				0					0						413				413
Total comprehensive income for the year				0		0				0					0						(1,057)				(1,057)
At 31st December 2009				1,293		1,864				132					(901)						12,386				14,774

 

BILLINGTON HOLDINGS PLC
Consolidated cash flow statement for the year ended 31st December 2009
			2009				2008
			£'000				£'000
Cash flows from operating activities
Group profit after tax			1,564				3,269
Adjustments for:
Depreciation on property, plant and equipment			1,172				1,390
Difference between pension charge and cash contributions			(1,460)				(702)
Loss/(profit) on sale of property, plant and equipment			9				(19)
Taxation expense recognised in income statement			1,405				1,696
Taxation paid			(1,143)				(1,958)
Finance cost/(income)			201				(213)
Decrease/(increase) in inventories and work in progress			3,375				(5,238)
Decrease/(increase) in trade and other receivables			6,048				(7,337)
Decrease in trade and other payables			(5,512)				(40)
Loss on disposal of discontinued operations			0				279
Loss on measurement to fair value less costs to sell of discontinued operations			1,567				0
Net cash flow from operating activities			7,226				(8,873)
Cash flows from investing activities
Net interest received			99				430
Purchase of property, plant and equipment			(1,719)				(938)
Proceeds from sale of property, plant and equipment			181				253
Net cash inflow from disposal of discontinued operations			0				8,400
Net cash flow from investing activities			(1,439)				8,145
Cash flows from financing activities
Equity dividends paid			(1,274)				(1,305)
Employee Share Ownership Plan share purchases			(2)				(34)
Employee Share Ownership Plan share sales			0				8
Net cash flow from financing activities			(1,276)				(1,331)
Net increase/(decrease) in cash and cash equivalents			4,511				(2,059)
Cash and cash equivalents at beginning of period			3,979				6,038
Cash and cash equivalents at end of period			8,490				3,979
Cash and cash equivalents of continuing Group			8,488				3,979
Included within the disposal group			2				0
Total cash and cash equivalents			8,490				3,979

Notes to the preliminary announcement:

 

1. Basis of preparation

 

The financial information in this preliminary announcement has been prepared in accordance with accounting policies which are based on the International Financial Reporting Standards (IFRS) as adopted by the European Union and in issue and in effect at 31st December 2009.

2. Accounts

 

The summary accounts set out above do not constitute statutory accounts as defined by Section 434 of the UK Companies Act 2006. The summarised consolidated balance sheet at 31 December 2009, the summarised consolidated income statement, the summarised consolidated statement of comprehensive income, the summarised consolidated statement of changes in equity and the summarised consolidated cash flow statement for the year then ended have been extracted from the Group's 2009 statutory financial statements upon which the auditors' opinion is unqualified and did not contain a statement under either sections 498(2) or 498(3) of the Companies Act 2006. The audit reports for the year ended 31 December 2008 did not contain statements under Section 237(2) or Section 237(3) of the Companies Act 1985. The statutory financial statements for the year ended 31 December 2008 have been delivered to the Registrar of Companies. The 31 December 2009 accounts were approved by the directors on 10 May 2010, but have not yet been delivered to the Registrar of Companies.

3. Earnings per share

 

Earnings per share from continuing operations is calculated by dividing the profit for the year from continuing operations of £3,815,000 (2008 - £2,587,000) by 11,586,908 (2008 - 11,588,408) fully paid ordinary shares, being the weighted average number of ordinary shares in issue during the year, excluding those held in the ESOP Trust.

Earnings per share from discontinued operations is calculated by dividing the loss for the year from discontinued operations of £684,000 (2008 - profit - £961,000) by 11,586,908 (2008 - 11,588,408) fully paid ordinary shares.

Earnings per share from continuing and discontinued operations is calculated by dividing the profit for the year from continuing and discontinued operations of £1,669,000 (2008 - £3,269,000) by 11,586,908 (2008 - 11,588,408) fully paid ordinary shares. The profit for the year of £1,669,000 is after a deduction of £1,462,000 being the loss on measurement to fair value of discontinued operations.

There is no impact on a full dilution of the earnings per share calculation as all shares are in issue.

 

4. Report and accounts and AGM

 

The Annual Report and Accounts for the year ended 31st December 2009 will be posted to shareholders at the beginning of June and will be available on the company's website: www. billington-holdings.plc.uk.

The Annual General Meeting will be held on Monday 28th June 2010 at 11am at Billington Structures Ltd, Barnsley Road, Wombwell, South Yorkshire S73 8DS.

5. Segmental information

 

The continuing operations of Billington Holdings Plc operate only in Structural Steel. The Structural Steel segment includes the activities of Billington Structures Limited and easi-edge Limited. The operations of Dosco Overseas Engineering Limited (previously Engineering) and Hollybank Engineering Limited (previously Structural Steel) are considered discontinued as at the year end (see note 6). The Group activities, comprising services and assets provided to Group companies and a small element of external property rentals and management charges, are considered incidental to the activities of Billington Structures Limited and have therefore not been shown as a separate operating segment but have been subsumed with Structural Steel. The comparative figures for 2008 have been adjusted accordingly. All assets of the continuing Group reside in the UK.
																	Structural Steel									Discontinued Operations							Total
																	£'000									£'000							£'000
Year ended 31st December 2009
Revenue
External sales																	57,177									12,859
Segment result
Operating profit/(loss)																	5,249									(512)
Net finance income/(cost)																	90									(291)
Profit/(loss) before tax																	5,339									(803)
Tax																	(1,524)									119
Profit for the year before loss on measurement to fair value less costs to sell of discontinued operations																	3,815									(684)
Assets and liabilities
Segment assets																	25,908									9,132							35,040
Segment liabilities																	(12,704)									(7,562)							(20,266)
Net assets																	13,204									1,570							14,774
Other information
Capital expenditure																	1,652									67							1,719
Depreciation																	1,124									48							1,172
																	Structural Steel							Discontinued Operations								Total
																	£'000							£'000								£'000
Year ended 31st December 2008
Revenue
External sales																		59,998						39,075
Segment result
Operating profit																		3,769						1,161
Net finance income																		379						(54)
Profit before tax																		4,148						1,107
Tax																		(1,561)						(146)
Profit for the year before loss on disposal of discontinued operations																		2,587						961
Assets and liabilities
Segment assets																		34,757						7,357								42,114
Segment liabilities																		(20,255)						(6,316)								(26,571)
Net assets																		14,502						1,041								15,543
Other information
Capital expenditure																		896						542								1,438
Depreciation																		1,341						734								2,075

 

6. Discontinued operations

 

On 4th May 2010 the disposal businesses were sold to SMT Scharf AG, a company registered in Germany. The disposal businesses consisted of Dosco Holdings Limited, Dosco Overseas Engineering Limited, Hollybank Engineering Company Limited and Dosco Russia LLC, a company registered in Russia. The continuing operations consist of Billington Structures Limited, easi-edge Limited and Billington Fleet Management Limited.

 

 

Cash flows from discontinued operations for the year ended 31st December 2009
																		2009			2008
																		£'000			£'000
Net cash flow from operating activities																		2,790			(5,991)
Net cash flow from investing activities																		(17)			(42)
Net cash flow from financing activities																		(2,765)			6,101
Net increase in cash and cash equivalents																		8			68
In accordance with IAS 7 and IFRS 5 the cash flows above in respect of the discontinued operations are included in the consolidated cash flow statement under their respective headings.
Balance sheet of the disposal group at 31st December 2009
																	£'000			£'000
Property, plant and equipment																				2,509
Deferred tax assets																				(4)
Inventories and work in progress																				4,580
Trade and other receivables																				3,138
Current tax receivable																				474
Cash and cash equivalents																				2
Assets of disposal group																				10,699
Trade and other payables																	(2,354)
Pension liabilities net of deferred tax																	(5,208)
Liabilities of disposal group																				(7,562)
Net assets of disposal group																				3,137
Disposal proceeds (net of professional fees)																				(1,570)
Loss on measurement to fair value less costs to sell of discontinued operations																				1,567
The loss on disposal of discontinued operations of £279,000 recognised in the year ended 31st December 2008 represents the profit after tax from discontinued operations for the period 1st January 2008 to 11th April 2008, along with the disposal Group's share of the pension surplus pertaining to the Amco Group Pension Scheme.

 

 

This information is provided by RNS

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