Billington Holdings (BILN) AI Stock Analysis

• Market Cap: £48.40M
• Dividend Yield: 4.8%
• Average Volume (3M): 43.83K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.37
• Revenue Growth: -14.67%
• EPS Growth: -19.63%
• Country: UK
• Employees: 520
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 0.36
• Shares Outstanding: 13,260,959
• 10 Day Avg. Volume: 14,361
• 30 Day Avg. Volume: 43,834
• PEG Ratio: <0.01
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: 448.00p ▲(17.12%Upside)

Billington Holdings scores well overall, driven by strong financial performance and attractive valuation metrics. Corporate events further support the company's strategic direction. However, technical indicators show mixed signals, which slightly dampens the overall score.

Billington Holdings Business Overview & Revenue Model

Company Description

Billington Holdings (BILN) is a prominent UK-based engineering and construction company specializing in structural steel and complex construction projects. The company operates primarily in the construction and infrastructure sectors, providing a range of services including the design, fabrication, and erection of steel structures for industrial, commercial, and public sector clients. Billington Holdings is known for its expertise in delivering high-quality, customized steelwork solutions tailored to the specific needs of its diverse clientele.

How the Company Makes Money

Billington Holdings generates revenue through multiple streams primarily centered around its core competencies in structural steelwork. The company earns money by undertaking contracts for the design, fabrication, and installation of steel structures for various construction projects. These projects range from small-scale commercial buildings to large-scale infrastructure developments. Revenue is predominantly driven by project-based contracts, where Billington Holdings is engaged to provide comprehensive steelwork solutions. Additionally, the company may form strategic partnerships and collaborations with other firms in the construction industry to leverage combined expertise and resources, thereby enhancing its revenue potential. The company's financial performance is also influenced by factors such as project size, complexity, and duration, as well as market demand for construction and infrastructure development.

Billington Holdings Financial Statement Overview

Summary

Billington Holdings demonstrates a strong financial recovery with significant improvements in profitability margins and return on equity. The balance sheet is robust with low leverage and a solid equity base. Cash flow management remains positive, although there's a slowdown in cash generation growth.

Income Statement

Billington Holdings shows a strong recovery trend in gross profit margin, increasing from 4.1% in 2021 to 13.0% in 2022, and further sustaining at 13.0% in 2023. The net profit margin improved significantly from 0.1% in 2021 to 7.8% in 2023. Despite a revenue decline from 2022 to 2023, the company has maintained profitability due to efficient cost management, as seen in the improved EBIT and EBITDA margins.

Balance Sheet

The company's balance sheet reflects a solid equity base with the equity ratio improving to 67.9% in 2023. The debt-to-equity ratio remains low at 0.03, indicating strong financial leverage with minimal reliance on debt. Return on equity grew from 0.2% in 2021 to 21.6% in 2023, showcasing effective use of equity to generate profits. However, the decline in total assets from 2022 to 2023 warrants monitoring.

Cash Flow

Despite a reduction in operating cash flow from 2022 to 2023, Billington Holdings maintains a positive free cash flow, indicating good cash management and capital expenditure control. The operating cash flow to net income ratio is healthy, though the free cash flow growth rate has slowed, suggesting potential challenges in cash generation moving forward.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.06M	132.50M	86.61M	82.72M	69.46M
Gross Profit	14.72M	54.31M	8.94M	4.17M	3.58M
EBITDA	13.23M	15.69M	7.97M	3.27M	3.57M
Net Income	8.27M	10.32M	4.73M	68.00K	1.37M
Balance Sheet
Total Assets	78.11M	81.60M	60.68M	52.95M	49.56M
Cash, Cash Equivalents and Short-Term Investments	21.70M	22.08M	11.63M	10.38M	15.13M
Total Debt	1.64M	1.80M	2.69M	1.00M	1.26M
Total Liabilities	25.09M	33.76M	26.33M	23.56M	20.34M
Stockholders Equity	53.02M	47.84M	34.35M	29.39M	29.22M
Cash Flow
Free Cash Flow	3.63M	13.05M	2.00M	-4.26M	-2.67M
Operating Cash Flow	8.63M	15.95M	6.51M	-1.91M	-451.00K
Investing Cash Flow	-4.67M	-2.63M	-4.57M	-2.06M	-1.92M
Financing Cash Flow	-4.35M	-2.87M	-687.00K	-774.00K	-357.00K

Billington Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 382.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BILN, the sentiment is Negative. The current price of 382.5 is below the 20-day moving average (MA) of 407.18, below the 50-day MA of 383.10, and below the 200-day MA of 426.97, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 34.62 is Neutral, neither overbought nor oversold. The STOCH value of 12.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BILN.

Billington Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	74 Outperform	£48.40M	5.78	16.40%	4.80%	-14.67%	-19.63%
Sector *	68 Neutral	£2.95B	10.28	8.40%	3.21%	2.87%	-9.95%
SFR	68 Neutral	£111.05M	35.33	1.55%	9.66%	6.00%	-84.54%
VANL	68 Neutral	£47.07M	11.92	7.44%	1.84%	0.24%	10.27%
SMJ	59 Neutral	£46.72M	29.85	1.28%	0.02%	15.39%	1240.00%
NEXS	53 Neutral	£14.18M	―	-10.69%	2.55%	-3.17%	69.15%
KINO	51 Neutral	£56.02M	9.42	470.34%	―	0.20%	79.77%

Billington Holdings Corporate Events

Billington Holdings Successfully Passes All Resolutions at AGM

Billington Holdings Plc announced that all Ordinary and Special Resolutions proposed at their Annual General Meeting were successfully passed. This development underscores the company’s stable governance and could strengthen its position in the structural steel and construction safety industry, potentially benefiting stakeholders through continued strategic focus and operational stability.

Billington Holdings PLC Announces Change in Voting Rights

Billington Holdings PLC has announced a change in the voting rights held by Ocorian Trustees (Jersey) Limited as Trustee of the Billington Holdings Plc Employee Share Ownership Trust. The notification indicates a decrease in the percentage of voting rights from 5.1% to 3.624%, reflecting a shift in the ownership structure. This adjustment may impact the company’s governance dynamics and influence stakeholder decisions.

Billington Holdings Executives Exercise Share Options Under LTIP

Billington Holdings Plc announced that two of its executive directors have exercised share options under the Long Term Incentive Plan, resulting in the transfer of 221,275 ordinary shares. The transactions were conducted to cover tax and National Insurance liabilities, with Mark Smith and Trevor Taylor selling portions of their shares. This move reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting its market positioning by demonstrating strong leadership confidence in the company’s future.

Billington Holdings Announces LTIP Awards to Align Strategic Goals

Billington Holdings Plc has announced the allocation of awards under its Long Term Incentive Plan (LTIP), aimed at aligning the strategic objectives of the company with those of its senior management and maximizing shareholder value. The LTIP awards, tied to the company’s profitability, cover the financial years 2025 to 2027, with full vesting contingent on achieving a cumulative Profit Before Tax (PBT) range of £30 million to £40 million. This move is expected to enhance the company’s operational focus and potentially strengthen its market position by incentivizing key executives to meet profitability targets.

Billington Holdings Announces Deferred Bonus Plan Awards

Billington Holdings Plc has announced awards under its Deferred Bonus Plan following the release of its 2024 Annual Results. Executive Directors Mark Smith and Trevor Taylor received awards of 25,080 and 20,601 ordinary shares respectively, which are held by the Company’s Employee Share Ownership Trust for three years before being released. This move underlines the company’s commitment to aligning executive incentives with shareholder interests and maintaining transparency in its operations.

Billington Holdings Reports Strong 2024 Performance Amid Market Challenges

Billington Holdings reported a robust performance for 2024 despite a 14.6% decline in revenue to £113.1 million, attributed to challenging market conditions and an exceptional previous year. The company maintained a strong cash position, remained debt-free, and increased its ordinary dividend by 25%. Billington’s strategic focus on complex projects and sectors like data centers and energy from waste has resulted in better margins, and the company is well-positioned to capitalize on future market improvements with a strong order book for 2025 and 2026.