12th Dec 2024. 8.57am
Regency View:
Update
Regency View:
Update
Billington build on strength
Shares in Billington (BILN) surged higher this week after the company delivered a trading update that revealed strong performance across all its divisions and an upgraded profit outlook for the full year.
The structural steel specialist announced that results for FY24 are now expected to surpass current market expectations. This follows a solid first half, as detailed in its interim results back in September, and continued momentum through the second half.
A key driver of this success has been improved manufacturing efficiencies, boosted by a capital investment programme across its production facilities. At the Shafton site, construction is underway on a new building to expand capacity for its Tubecon division. This upgrade, due to be fully operational by mid-2025, will also allow the company to handle larger and more complex fabrication projects. Meanwhile, the Billington Structures business has added an extra shift and onboarded additional resources to keep pace with its strong workload.
While the collapse of ISG Construction Holdings in September posed a potential challenge, Billington has mitigated the financial impact with support from its credit insurer. The situation is largely resolved, with the company incorporating any residual impact into its updated guidance. Crucially, most contracts with ISG had already reached completion before the administration news broke.
Looking ahead, Billington’s robust order book continues to span multiple sectors, from energy-from-waste projects to high-tech manufacturing and data centres. These areas, often requiring more intricate solutions, reflect the company’s ability to win contracts in specialised and growing markets. With confidence in its pipeline and an optimistic outlook for 2025, Billington has shown it’s well-equipped to navigate current market headwinds.
Mark Smith, Billington’s CEO, summed it up: “We have a solid order book across all of Billington’s businesses and a healthy pipeline of future opportunities. Whilst mindful of challenging market conditions, I’m optimistic that Billington will continue to perform robustly in 2025 and beyond.”
BILN Daily Candle Chart
Ebiquity take a knock as final months of 2024 fall short
Shares in Ebiquity (EBQ) slipped last week after the media investment analysis firm revealed that revenue for 2024 is expected to decline slightly compared to the previous year, despite earlier hopes for a stronger second half.
The trading update highlighted that while H2 revenues will show a mid-single-digit improvement over the first half, the final months of the year haven’t lived up to the Board’s expectations. The company cited challenging trading conditions in certain regions and operational bottlenecks caused by the concentrated volume of recent business as key factors behind the shortfall.
Ebiquity has implemented tactical cost-saving measures to soften the blow. These efforts mean that Adjusted EBIT for the second half is forecast to be more than double that of H1, resulting in a full-year margin of around 10%, though this still lags behind the 15% recorded in 2023.
Net debt, which stood at £15.3 million as of 30 June, rose slightly during the third quarter due to normal seasonal patterns. However, it is expected to decline by year-end as the company benefits from improved working capital management and stronger cash collections into early 2025. The Group assured investors that it has sufficient liquidity and remains well within its banking covenants.
CEO Ruben Schreurs struck a balance between realism and optimism, acknowledging the short-term challenges while focusing on the longer-term outlook: “H2 2024 performance has been stronger than H1 2024, albeit below previous expectations. The business has continued to develop a pipeline of revenue opportunities, which will be realised during 2025. Long-term sustainable profit growth and improved forecast reliability remain our key objectives.”
EBQ Daily Candle Chart
Synectics FY 2024 profit set to exceed expectations
Shares in Synectics (SNX) rallied this week after the advanced security and surveillance systems specialist revealed profits for FY 2024 are expected to surpass market expectations.
Strong momentum across all its market verticals during the second half of the year has driven this better-than-anticipated performance. The company’s order book closed FY 2024 at an impressive £37.8 million—a sharp increase from the £30.2 million recorded in May and £29.2 million a year earlier.
Profitability gains were matched by a significant boost to cash reserves. Synectics ended the year with £9.6 million in cash, more than double the £4.6 million held at the close of FY 2023, and it also retains undrawn bank facilities of £3 million. This financial position provides a solid base as the company looks ahead to FY 2025.
This update sets a confident tone for the future. The robust order book reflects strong growth prospects, and investors responded positively, encouraged by the company’s ability to capitalize on opportunities and deliver results.
Audited results for FY 2024 will be announced in early March 2025. For now, rising orders, a fortified cash position, and market-beating profits suggest Synectics is well-positioned for continued success in the new financial year.
SNX Daily Candle Chart
Inspecs lowers full-rear revenue guidance as European recovery lags
Shares in Inspecs (SPEC) dropped this week following a trading update for FY 2024, which showed that, despite year-on-year growth in the second half, the recovery in European markets has been slower than anticipated.
Although Q4 sales showed positive momentum, they did not meet expectations, with the company now projecting revenue for the year to be around £197 million (approximately £202 million on a constant currency basis). The expected Underlying EBITDA for FY 2024 is forecasted to range between £17.4 million and £17.9 million.
The slower-than-expected recovery in Europe, coupled with the deferral of orders from some larger customers into 2025, led to the revised outlook.
On a positive note, the company’s new manufacturing facility in Vietnam has now been completed, with production expected to ramp up through 2025 to meet growing demand.
Inspecs will provide a full-year trading update on 30 January 2025, with final results due in April 2025. For now, the revised guidance reflects ongoing challenges in key markets but also signals long-term growth potential from expanded production capabilities.
SPEC Daily Candle Chart
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