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LONDON (Alliance News) - Billington Holdings PLC on Tuesday doubled its 2015 dividend after the structural steel and construction safety company saw a surge in pretax profit coming from its increased output.
Billington posted pretax profit of GBP3.1 million for the year ended December 31, 63% higher than the GBP1.9 million in 2014, as the increase in Billington's revenue, to GBP56.7 million from GBP45.1 million, outpaced the rise in operating costs, which was up at GBP53.7 million from GBP43.2 million.
Billington said the growth in output was driven by its steelwork activities, saying that, although demand still remains below pre-recession levels, the group still achieved growth and obtained a higher volume of work.
The company said forecasts indicate steel consumption grew 8.0% industry-wide in 2015, and will increase by a further 4.0% in 2016.
Billington said its GBP4.9 million purchase of the Shafton facility in December is not anticipated to have a material impact on the trading result of the group in 2016 while the facility is adapted for optimum production, and certain tenants, who occupy particular areas of the site, vacate at the expiry of their leases.
In light of the higher profit, Billington doubled its dividend payout for the year, proposing a 6.00 pence per share dividend compared to 3.00p a year earlier.
"Billington's expansion strategy has progressed significantly following the purchase of the Shafton site which increased the capacity of the company's structural steel work activities and, in the future, will provide increased opportunities for development," Chief Executive Mark Smith said.
"After a slow start to 2016 as a result of a number of significant contracts being delayed the remainder of the year looks set to be busy for all divisions, providing management confidence for the full year," Smith added.
Shares in Billington were down 1.2% at 294.03 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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