Steel firm sees bottom line nosedive

The ongoing impact of the covid-19 pandemic and jump in steel prices saw profit at steelwork contractor Billington slip by close to 90% last year.

The AIM-listed firm said pre-tax profit nosedived from £1.7m to just £200,000 – a fall of 88% – on revenue up a quarter to just under £83m.

billington

Billington said covid continued to be a drag on the firm’s numbers last year

It said its numbers were hit by the continuing effects of the pandemic, raw material price increases, along with supply constraints for certain materials and labour.

Billington said it would take a £1.1m charge after the firm said a client it was working for went into administration earlier this year. It added: “The Company has taken the decision to provide for the debt owed while continuing to seek recovery of the monies.”

It also said it had repaid a deferred VAT liability of £671,000 under the coronavirus deferral scheme. The amount of cash at the year-end was £10.4m, down one third from the previous year.

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