Structural steel specialist celebrates remarkable growth with a 30% revenue increase and unprecedented margins.
Billington Holdings, the structural steel contractor, has marked an exceptional first half of the year, recording a record-breaking performance with a 30% surge in revenue and a remarkable boost in profit margins.
For the six months ending on June 30, 2023, Billington Holdings reported a staggering revenue of £60.2 million (compared to £46.2 million in H1 2022). The company also achieved an outstanding pre-tax profit of £4.6 million, a figure more than triple that of the same period in 2022 when it stood at £1.3 million. This remarkable achievement in profit marks the highest-ever first-half performance in the company’s history, largely attributed to the stabilization of steel prices.
Billington, based in Barnsley, is now proudly debt-free, having cleared its remaining outstanding debt in January 2023.
Mark Smith, Chief Executive of Billington, shared his insights on the exceptional results. He said, “Despite the ongoing uncertainty in the market, with several projects either deferred or canceled, our group’s structural steel businesses have continued to operate at nearly full capacity during the first half of the year.”
Smith attributed the impressive performance to recent efficiency and process enhancements resulting from the company’s investment in capital equipment and talent. He also noted that some moderation in primary raw material prices had further bolstered project margins.
“Strong demand persists in sectors such as energy from waste, high-tech manufacturing, infrastructure, and data centers,” Smith explained. “While large office developments have remained limited, and industrial warehousing development has slowed, Billington Structures has managed to secure contracts in these areas.”
He went on to express optimism for the future despite the challenges posed by inflationary pressures and economic uncertainty. Smith anticipates a robust performance in the second half of the year, with expectations of the group surpassing previous board projections for full-year profits.
However, like many other companies, Billington faces recruitment challenges. The company has taken proactive steps to address this issue by providing training opportunities for local talent, including the opening of a fabrication and welding training center at its Shafton facility in partnership with Barnsley College. Nevertheless, the company has experienced more success in recruiting talent from overseas. In the first half of 2023, Billington welcomed 37 new staff members from abroad, equivalent to 10% of its workforce, in addition to the existing foreign labor force. Smith also mentioned that Billington has been actively assisting these new recruits in settling in the UK and providing ongoing housing support.