Billington Hldgs reports 26.8% EBITDA growth and 11.6% Revenue growth

21 Mar 2017 • About Billington Hldgs ($BILN) • By InTwits

Billington Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

EBITDA Margin is quite volatile: 8.0% in FY2016, 7.1% in FY2015, 5.9% in FY2014, 4.6% in FY2013, 2.6% in FY2012
Billington Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.7%.
CAPEX is quite volatile: 1.3 in FY2016, 6.1 in FY2015, 1.3 in FY2014, 0.45 in FY2013, 0.35 in FY2012
The company has highly profitable business model: ROIC is at 18.9%

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Billington Hldgs ($BILN) key annual financial indicators

mln. £	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	36.347	39.404	45.103	56.748	63.334	11.6%
Gross Profit	14.945	16.416	17.484	20.576	23.864	16.0%
EBITDA	0.936	1.803	2.670	4.004	5.079	26.8%
Net Income	-0.415	0.464	1.445	2.444	2.971	21.6%
Balance Sheet
Cash	1.012	2.576	3.872	2.611	6.033	131.1%
Short Term Debt	0.045	0.368	0.045	0.301	0.487	61.8%
Long Term Debt	0.368	0.000	0.279	2.492	2.005	-19.5%
Cash flow
Capex	0.347	0.449	1.308	6.111	1.277	-79.1%
Ratios
Revenue growth	-34.0%	8.4%	14.5%	25.8%	11.6%
EBITDA growth	-189.7%	92.6%	48.1%	50.0%	26.8%
Gross Margin	41.1%	41.7%	38.8%	36.3%	37.7%	1.4%
EBITDA Margin	2.6%	4.6%	5.9%	7.1%	8.0%	1.0%
Net Income Margin	-1.1%	1.2%	3.2%	4.3%	4.7%	0.4%
CAPEX, % of revenue	1.0%	1.1%	2.9%	10.8%	2.0%	-8.8%
ROIC	-1.2%	7.7%	14.1%	17.4%	18.9%	1.6%
ROE	-3.3%	3.7%	10.6%	15.9%	16.9%	1.0%
Net Debt/EBITDA	-0.6x	-1.2x	-1.3x	0.0x	-0.7x	-0.7x

Revenue and profitability

Billington Hldgs's Revenue jumped on 11.6% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 24.7 pp from 7.4% to -17.3% in FY2016.

Gross Margin increased slightly on 1.4 pp from 36.3% to 37.7% in FY2016.

Net Income marign showed almost no change in FY2016.

Capital expenditures (CAPEX) and working capital investments

In FY2016 Billington Hldgs had CAPEX/Revenue of 2.0%. Billington Hldgs showed small growth in CAPEX/Revenue of 0.88 pp from 1.1% in FY2013 to 2.0% in FY2016. It's average CAPEX/Revenue for the last three years was 5.2%.

Return on investment

The company operates at good ROIC (18.94%) and ROE (16.90%). ROIC increased slightly on 1.6 pp from 17.4% to 18.9% in FY2016. ROE increased slightly on 0.96 pp from 15.9% to 16.9% in FY2016.

Leverage (Debt)

Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.7x from 0.045x to -0.7x in FY2016. Debt dropped on 10.8% in FY2016 while cash surged on 131% in FY2016.

Appendix 1: Peers in Construction & Materials

Below we provide Billington Hldgs benchmarking against other companies in Construction & Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kingspan Group ($KGP)		9.1%	6.4%	46.7%	12.0%
Accsys Technologies ($AXS)		25.5%	78.0%	37.5%	14.5%
Crh ($CRH)		-0.3%	4.9%	25.0%	14.7%
Clarke(T.) ($CTO)	5.5%	12.0%	-4.2%	16.6%
Titon Hldgs ($TON)		8.2%	22.3%	15.6%	6.6%
Median (25 companies)	1.0%	5.5%	8.8%	1.6%	7.7%
Billington Hldgs ($BILN)		8.4%	14.5%	25.8%	11.6%

Top companies by Gross margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Inch Kenneth Kajang Rubber ($IKK)	46.5%	24.5%	21.7%	51.7%
Swp Group ($SWP)	43.0%	48.1%	39.2%	49.7%
Heath(Samuel)& Sons ($HSM)	49.5%	47.3%	48.6%	47.6%	48.1%
James Halstead ($JHD)	41.2%	41.6%	41.0%	41.7%	42.4%
Michelmersh Brick Hldgs ($MBH)	35.3%	28.4%	31.1%	38.2%	34.4%
Median (23 companies)	23.6%	24.2%	26.3%	29.1%	32.6%
Billington Hldgs ($BILN)	41.1%	41.7%	38.8%	36.3%	37.7%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Lucky Cement Ltd ($LKCS)	31.5%	26.8%	24.4%	26.5%	30.4%
Steppe Cement ($STCM)	20.8%	23.2%	14.3%	24.7%
James Halstead ($JHD)	20.2%	19.8%	20.1%	20.9%	21.6%
Michelmersh Brick Hldgs ($MBH)	10.6%	7.9%	14.1%	20.3%	18.7%
LSR Group OJSC ($LSRG)	20.2%	19.5%	22.9%	19.3%
Median (25 companies)	8.7%	7.4%	9.7%	9.7%	11.5%
Billington Hldgs ($BILN)	2.6%	4.6%	5.9%	7.1%	8.0%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Inch Kenneth Kajang Rubber ($IKK)	74.2%	5.4%	12.8%	54.9%	754.9%
Lucky Cement Ltd ($LKCS)	3.2%	5.2%	6.9%	12.0%	8.9%
Low & Bonar ($BD46)	3.5%	2.8%	4.6%	9.1%	4.7%
Superglass Hldgs ($SPGH)	12.9%	14.2%	3.4%	7.9%
Swp Group ($SWP)	0.9%	2.5%	8.5%	7.4%
Median (25 companies)	2.2%	2.5%	2.4%	2.2%	3.1%
Billington Hldgs ($BILN)	1.0%	1.1%	2.9%	10.8%	2.0%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
James Halstead ($JHD)	49.3%	46.2%	46.7%	45.3%	47.1%
Alumasc Group ($ALU)	6.5%	17.5%	22.6%	36.0%	47.8%
Heath(Samuel)& Sons ($HSM)	9.7%	8.7%	19.7%	32.0%	89.2%
Aukett Swanke Group ($AUK)	2.7%	11.4%	27.3%	31.6%	9.6%
Lucky Cement Ltd ($LKCS)	23.8%	22.9%	20.3%	20.0%	20.8%
Median (25 companies)	4.8%	7.2%	5.4%	7.8%	9.4%
Billington Hldgs ($BILN)	-1.2%	7.7%	14.1%	17.4%	18.9%

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Mountfield Group ($MOGP)	26.3x	4.8x	52.0x	18.8x
Asia Cement Corp ($ASCD)	7.8x	6.9x	6.8x	8.6x
Crh ($CRH)	2.0x	3.6x	1.6x	3.1x	1.7x
Low & Bonar ($BD46)	2.7x	2.1x	2.1x	2.4x	2.1x
Saint-Gobain(Compagnie De) ($COD)	2.1x	2.0x	2.1x	1.4x	1.5x
Median (21 companies)	1.7x	0.8x	0.5x	-0.1x	-0.9x
Billington Hldgs ($BILN)	-0.6x	-1.2x	-1.3x	0.0x	-0.7x

Billington Hldgs stock price chart

Billington Hldgs financials

mln.	FY2010	FY2011	FY2012

Revenue	42.935	55.057	36.347
EBITDA	2.451	-1.043	0.936
Net income	0.822	-1.729	-0.415
CAPEX	1.817	1.969	0.347
Debt	0.000	0.462	0.413
Cash	4.854	1.839	1.012

About Billington Hldgs

Billington Holdings plc, through its subsidiaries, designs, manufactures, and installs structural steelworks in the United Kingdom and internationally. The company designs, fabricates, and installs engineered steelworks, staircases, and balustrade systems for residential, domestic, and commercial applications. It also provides safety solutions and barrier systems for the construction industry; and designs and engineers various structures, such as ETFE structures, architectural glazing, fabric roofs, footbridges, steel sculptures, facade steel, and roof trusses, as well as other complex structures work for the construction and rail infrastructure markets. In addition, the company provides site security hoarding systems; and property rental and management services. It serves commercial, defense, education, health, industrial, infrastructure, leisure, residential, and retail sectors. The company was formerly known as Amco Corporation Plc and changed its name to Billington Holdings plc in June 2008. Billington Holdings plc was incorporated in 1989 and is based in Barnsley, the United Kingdom.