Key Highlights :
The film and television industry is one of the UK's most lucrative and successful sectors, bringing in billions of pounds in revenue each year. Steel group Billington Holdings has played a crucial role in the success of this industry, supplying steel for projects such as Shepperton Studios' £500 million expansion project. Now, with the company's shares priced at £4.15, investors have the opportunity to get in on the action and benefit from Billington's blockbuster profits.
Billington was founded in the aftermath of the Second World War, with a single steel fabrication shop in Barnsley, South Yorkshire. Since then, the company has become renowned for its engineering expertise and high-quality workmanship, providing steel structures, specialist coatings, safety barriers and hoardings.
Under the leadership of Mark Smith, Billington has diversified into high-growth areas such as renewable energy, data centres, online warehouses and media production. This has enabled the company to deliver impressive results for the 2022 financial year, with revenues rising 5% to £87 million and profits soaring more than fourfold from £1.3 million to £5.8 million. The dividend was also increased by more than five-fold, from 3p to 15.5p.
Billington's order book has doubled since last year, and the company is currently involved in a major new project for production giant Sunset Studios. The £700 million studio in Broxbourne, Hertfordshire, is expected to bring thousands of jobs to the area, as well as plenty of work for Billington. The company is also supplying steel for tech giants such as Amazon, Google and Microsoft, as they invest heavily in state-of-the-art facilities in the UK.
To take full advantage of the Government's super-deduction tax incentive scheme, Billington is undertaking an £11.5 million, three-year investment programme. This will allow the company to deliver goods more quickly and effectively than ever before, as well as expand its workforce.
The future looks bright for Billington, with Smith optimistic about the company's prospects. Brokers expect a 30% increase in sales to £115 million in 2023, with profits up to £8 million and a chunky hike in the dividend to 20p. Billington is also actively looking for acquisitions to complement its existing business lines.
For investors looking to get in on the action, the £4.15 share price of Billington Holdings should go far, and the dividend provides an attractive income stream too. With the company's order book full for the next two years and Smith's nous and ingenuity steering the company through tough times, Billington is well-positioned to capitalise on the UK's booming film and television industry and deliver blockbuster profits for investors.