Billington operating profit down by half

Billington Holdings has announced a drop in revenue of 28% and a fall in operating profit of over half in its interim results for the six months to 30 June.

The number and price of structural steel contracts will remain “well below that of recent years” for 2010 and 2011, according to the steel and safety firm.

Chief executive Steve Fareham said that the outlook for the sector was grim: “Prospects for the sectors in which the group operate remain challenging for the foreseeable future.

“The number and value of contracts being awarded remains well below that of recent years and as a result new work is only won on very competitive terms. We expect that this will continue to have an adverse effect on our margins and working capital in 2010 and 2011.”