Half Year 2026 Billington Holdings PLC Earnings Call

September 29, 2026

Speaker #1: Made questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send.

Speaker #1: The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses to that appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I now like to hand you over to Mark Smith, CEO. Good afternoon, sir.

Speaker #2: Back up the Q&A. Good afternoon and welcome to the Billington Holdings PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode.

Speaker #2: Good afternoon. I'm Mark Smith, Chief Executive Officer at Billington Holdings PLC. I and my colleagues, Trevor Taylor, Chief Operating Officer, and Dave Jones, Chief Financial Officer, are pleased to present to you our 2026 interim results.

Operator: Good afternoon and welcome to the Billington Holdings PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand over to Mark Smith, CEO. Good afternoon, sir.

Speaker #2: Questions are encouraged and can be submitted at any time via the Q&A tab situated in the right-hand corner of your screen. Simply type in your questions and press send.

Speaker #2: The company may not be in a position to answer every question it received during the meeting itself; however, the company can review all questions submitted today and publish responses where it's appropriate to do so.

Speaker #2: Our executive summary provides some of the highlights for the first half of 2026. However, firstly, leadership changes. After more than 12 years with Billingtons, I have informed the board of my decision to retire as Chief Executive Officer from 31 December 2026.

Speaker #2: Before we begin, I'd like to submit the following poll. And I'd like to hand you over to Mark Smith, CEO. Good afternoon, sir.

Speaker #3: Good afternoon. I'm Mark Smith, Chief Executive Officer at Billington Holdings PLC. My colleagues, Trevor Taylor, Chief Operating Officer, and Dave Jones, Chief Financial Officer, are pleased to present to you our 2026 interim results.

Mark Smith: Good afternoon. I'm Mark Smith, Chief Executive Officer at Billington Holdings PLC. I and my colleagues, Trevor Taylor, Chief Operating Officer, and Dave Jones, Chief Financial Officer, are pleased to present to you our 2026 interim results. Our executive summary provides some of the highlights for the H1 of 2026. However, firstly, leadership changes. After more than 12 years with Billingtons, I have informed the board of my decision to retire as chief executive officer from 31 December 2026. It's been a great privilege to see the business grow and evolve into one of the industry's leading structural steelwork companies, and I am proud that I've played my part as group CEO in achieving these successes.

Speaker #2: It's been a great privilege to see the business grow and evolve into one of the industry's leading structural steelwork companies, and I am proud that I've played my part as Group CEO in achieving these successes.

Speaker #3: Our executive summary provides some of the highlights for the first half of 2026. However, firstly, leadership changes. After more than 12 years with Billingtons, I have informed the board of my decision to retire as Chief Executive Officer from 31st December 2026.

Speaker #2: I've had the pleasure of working with friend and close colleague Trevor Taylor since joining Billington, and as I stepped down from the role, I do so knowing that he's well experienced to take on the role as CEO and has the support of an excellent team to continue to drive the group forward.

Speaker #3: It's been a great privilege to see the business grow and evolve into one of the industry's leading structural steelwork companies, and I am proud that I've played my part as Group CEO in achieving these successes.

Speaker #2: He will be ably assisted by Kevin Campbell, who moves to a strategic group role of special projects to direct internal and external change and development.

Speaker #2: Daniel Duffield, after over 10 years within Billington Structures, has taken the role of managing director. I will be retained by the company in an advisory role to assist and support the management team, clients, and promote the wider industry.

Speaker #3: I've had the pleasure of working with friend and close colleague Trevor Taylor since joining Billington, and as I stepped down from the role, I do so knowing that he's well experienced to take on the role as CEO and has the support of an excellent team to continue to drive the group forward.

Mark Smith: I've had the pleasure of working with friend and close colleague Trevor Taylor since joining Billington, and as I step down from the role, I do so knowing that he's well experienced to take on the role of CEO and has the support of an excellent team to continue to drive the group forward. He will be ably assisted by Kevin Campbell, who moves to a strategic group role of special projects to direct internal and external change and development. Dan Duffield, after over 10 years within Billington Structures, has taken the role of managing director. I will be retained by the company in an advisory role to assist and support the management team, clients, and promote the wider industry. A further change to the PLC board has been the appointment Olivier Aebi as non-executive director, replacing Alexander Ospelt. Replacement being directorship and engineering experience.

Speaker #2: A further change to the PLC board has been the appointment of Olivia Abe, as non-executive director, replacing Alexander Oschfeldt. Ollie has been known by the company for a while and is a natural replacement, being directorship and engineering experience.

Speaker #3: He will be ably assisted by Kevin Campbell, who moves to a strategic group role of special projects to direct internal and external change and development.

Speaker #3: Daniel Duffield, after over 10 years within Billington Structures, has taken the role of managing director. I will be retained by the company in an advisory role to assist and support the management team, clients, and promote the wider industry.

Speaker #2: Operationally, Billington has grown upon its position and reputation as one of the leading structural steelwork and construction safety solutions groups. In a challenging market, the company has reacted by reviewing its cost base, consolidating activities, extending night shifts, and continuing to invest in expansion, new technologies, and machinery that will improve quality and efficiency.

Speaker #3: A further change to the PLC board has been the appointment of Olivia Abe as non-executive director, replacing Alexander Oshford. Directorship and engineering experience. Operationally, Billington has grown upon its position and reputation as one of the leading structural steelwork and construction safety solutions groups.

Speaker #2: Furthermore, we have secured significant contracts with new financial secure clients across the group. Delivering in sectors that we are recognized as market-leading. This has resulted in a record order book and production secured throughout 2026 into 2027 and beyond.

Mark Smith: Operationally, Billington has grown upon its position and reputation as one of the leading structural steelwork and construction safety solutions group. In a challenging market, the company has reacted by reviewing its cost base, consolidating activities, extending night shifts, and continuing to invest in expansion, new technologies, and machinery that will improve quality and efficiency. Furthermore, we have secured significant contracts with new financially secure clients across the group, delivering in sectors that we are recognized as market leading. This has resulted in a record order book and production secured throughout 2026 into 2027 and beyond. 2026 being H2 weighted, we can report PBT of GBP 2.8 million, underlying operating profit at 5.1% for the half year, and on course to meet year-end expectations.

Speaker #3: In a challenging market, the company has reacted by reviewing its cost base, consolidating activities, extending night shifts, and continuing to invest in expansion, new technologies, and machinery that will improve quality and efficiency.

Speaker #2: 2026 being second half-weighted, we can report PBT of 2.8 million, underlying operating profit of 5.1% for the half-year, and on course to meet year-end expectations.

Speaker #3: Furthermore, we have secured significant contracts with new, financially secure clients across the group, delivering in sectors where we are recognized as market-leading. This has resulted in a record order book and production secured throughout 2026, into 2027, and beyond.

Speaker #2: The Billington Holdings PLC share register has remained relatively consistent in the period, with the largest movement being an increase in the shareholding of GPIM of 2% during the first half of 2026.

Speaker #3: 2026 being second half-weighted, we can report PBT of 2.8 million, underlying operating profit of 5.1% for the half-year, and on course to meet year-end expectations.

Speaker #2: Since the release of the full-year results in April, the share price has increased, from £3.80 to £4.45, an increase of 17%. The net asset value per share is £3.48, representing 86% of the current share price.

Speaker #3: The Billington Holdings PLC share register has remained relatively consistent in the period, with the largest movement being an increase in the shareholding of GPIM of 2% during the first half of 2026.

Mark Smith: The Billington Holdings PLC share register has remained relatively consistent in the period, with the largest movement being an increase in the shareholding of GPIM of 2% during the H1 of 2026. Since the release of the full-year results in April, the share price has increased from GBP 3.80 to GBP 4.45, an increase of 17%. The net asset value per share is GBP 3.48, representing 86% of the current share price. I hand over to Dave Jones to provide an overview of the financial performance of 2026.

Speaker #2: I hand over to Dave Jones to provide an overview of the financial performance for 2026.

Speaker #3: Thanks, Mark. In the first half of 2026, we delivered a strong trading performance and improved profitability in challenging market conditions, while continuing to strengthen the business operationally.

Speaker #3: Since the release of the full-year results in April, the share price has increased, from £3.80 to £4.45, an increase of 17%. The net asset value per share is £3.48, representing 86% of the current share price.

Speaker #3: Revenue increased to £54 million, principally reflecting a return to higher average steel content across structural steelwork projects in the period. We expect this more typical trading profile to continue throughout the remainder of 2026 and into 2027.

Speaker #3: I hand over to Dave Jones, to provide an overview of the financial performance of 2026.

Speaker #3: A key driver of the improved underlying performance has been the successful consolidation of activities within Barnsley. This has reduced our overhead cost base and enhanced operational efficiency across the business.

Speaker #4: Thanks, Mark. In the first half of 2026, we delivered a strong trading performance and improved profitability in challenging market conditions, while continuing to strengthen the business operationally.

Dave Jones: Thanks, Matt. In the H1 of 2026, we delivered a strong trading performance and improved profitability in challenging market conditions while continuing to strengthen the business operationally. Revenue increased to GBP 54 million, principally reflecting a return to higher average steel content across structural steelwork projects in the period. We expect this more typical trading profile to continue throughout the remainder of 2026 and into 2027. A key driver of the improved underlying performance has been the successful consolidation of activities within Barnsley. This has reduced our overhead cost base and enhanced operational efficiency across the business. The closure of the Yate facility has removed approximately GBP 4 million of annual fixed direct costs and reduced future capital expenditure requirements by around GBP 3 million.

Speaker #3: The closure of the Yate facility has removed approximately £4 million of annual fixed direct costs and reduced future capital expenditure requirements by around £3 million.

Speaker #4: Revenue increased to £54 million, principally reflecting a return to higher average steel content across structural steelwork projects in the period. We expect this more typical trading profile to continue throughout the remainder of 2026 and into 2027.

Speaker #3: Following the closure of Yate, we have continued to increase capacity at both our windmill and shafting facilities, supplemented by a greater use of qualified sum cod subcontract fabrication partners.

Speaker #4: A key driver of the improved underlying performance has been the successful consolidation of activities within Barnsley. This has reduced our overhead cost base and enhanced operational efficiency across the business.

Speaker #3: This provides greater operational flexibility and scalability, enabling the business to respond effectively to changing market conditions. As a result, the business delivered underlying operating profit margin of 5.1%, demonstrating the benefits of these operational improvements despite a competitive trading environment.

Speaker #4: The closure of the Yate facility has removed approximately £4 million of annual fixed direct costs, and reduced future capital expenditure requirements by around £3 million.

Speaker #4: Following the closure of Yate, we have continued to increase capacity at both our windmill and shafting facilities, supplemented by a greater use of qualified SOMCOD subcontract fabrication partners.

Dave Jones: Following the closure of Yate, we have continued to increase capacity at both our Wombwell and Shafton facilities, supplemented by a greater use of qualified subcontract fabrication partners. This provides greater operational flexibility and scalability, enabling the business to respond effectively to changing market conditions. As a result, the business delivered underlying operating profit margin of 5.1%, demonstrating the benefits of these operational improvements despite a competitive trading environment. Reflecting our confidence in the business and commitment to shareholder returns, a dividend of 11 pence per share was paid in July 2026, covering 2.46 times underlying earnings. Cash generation remained robust throughout the period, although working capital requirements increased.

Speaker #3: Reflecting our confidence in the business and commitment to shareholder returns, a dividend of £0.11 per share was paid in July 2026, covered 2.46 times underlying earnings.

Speaker #4: This provides greater operational flexibility and scalability, enabling the business to respond directly to changing market conditions. As a result, the business delivered underlying operating profit margin of 5.1%, demonstrating the benefits of these operational improvements despite a competitive trading environment.

Speaker #3: Cast Generation remained robust throughout the period, although working capital requirements increased. We closed the period with a net cash balance of £12.6 million, compared with an average net cash position of £17 million year to date.

Speaker #3: This reduction reflects the high level of trading activity and timing of contract delivery. Our £6 million revolving credit facility of HSBC remains under own, and we are currently progressing its renewal for a further 3-year term.

Speaker #4: Reflecting our confidence in the business and commitment to shareholder returns, a dividend of £0.11 per share was paid in July 2026, covered 2.46 times by underlying earnings.

Speaker #3: We expect the renewed facility to be agreed before the end of the year and in place well ahead of its maturity in March 2027, supported our ambitions for future growth and acquisition opportunities.

Speaker #4: Cash generation remained robust throughout the period, although working capital requirements increased. We closed the period with a net cash balance of £12.6 million, compared with an average net cash position of £17 million year-to-date.

Dave Jones: We closed the period with a net cash balance of GBP 12.6 million, compared with an average net cash position of GBP 17 million year to date. This reduction reflects the high level of trading activity and timing of contract delivery.

Speaker #3: For a risk management perspective, we continue to maintain credit insurance on our principal customers despite challenging conditions within the underwriting market. It is encouraging that a number of recent contract wins with new customers have been secured with financial strong and creditworthy organizations, further supporting the quality and resilience of our order book.

Speaker #4: This reduction reflects the high level of trading activity and the timing of contract delivery. Our £6 million revolving credit facility with HSBC remains in place, and we are currently progressing its renewal for a further three-year term.

Dave Jones: Our GBP 6 million revolving credit facility with HSBC remains undrawn, and we are currently progressing its renewal for a further three-year term. We expect the renewed facility to be agreed before the end of the year and in place well ahead of its maturity in March 2027, supporting our ambitions for future growth and acquisition opportunities. From a risk management perspective, we continue to maintain credit insurance on our principal customers despite challenging conditions within the underwriting market. It is encouraging that a number of recent contract wins with new customers have been secured with financially strong and creditworthy organizations, further supporting the quality and resilience of our order book. Our pension de-risking program continues to make good progress, with the scheme moving closer to formal buyout of its remaining liabilities. This represents another important milestone in reducing long-term financial risk and strengthening the group's overall balance sheet position.

Speaker #4: We expect the renewed facility to be agreed before the end of the year and in place well ahead of its maturity in March 2027, supporting our ambitions for future growth and acquisition opportunities.

Speaker #3: Our pension de-risking program continues to make good progress, with a scheme moving closer to the formal buyout of its remaining liabilities. This represents another important milestone in reducing long-term financial risk and strengthening the group's overall balance sheet position.

Speaker #4: For a risk management perspective, we continue to maintain credit insurance on our principal customers, despite challenging conditions within the underwriting market. It is encouraging that a number of recent contract wins with new customers have been secured with financial strong and creditworthy organizations, further supporting the quality and resilience of our order book.

Speaker #3: This slide provides some of the highlights of the 2026 trading period. Revenue increased 29% to £54 million, while underlying profit before tax rose to £3.1 million from £1.7 million in the comparable period.

Speaker #4: Our pension de-risking program continues to make good progress, with a scheme moving closer to formal buyout of its remaining liabilities. This represents another important milestone in reducing long-term financial risk and strengthening the group's overall balance sheet position.

Speaker #3: Underlying operating margin also improved to 5.1%, compared with £3.3% last year. Underlying return on capital employed increased to 16.9%, demonstrating the benefits of enhanced operational performance and our investment strategy.

Dave Jones: This represents another important milestone in reducing long-term financial risk and strengthening the group's overall balance sheet position.

Speaker #4: This slide provides some of the highlights of the 2026 trading period. Revenue increased 29% to £54 million, while underlying profit before tax rose to £3.1 million from £1.7 million in the comparable period.

Dave Jones: This slide provides some of the highlights of the 2026 trading period. Revenue increased 29% to GBP 54 million, while underlying PBT rose to GBP 3.1 million from GBP 1.7 million in the comparable period. Underlying operating margin also improved to 5.1% compared with 3.3% last year. Underlying return on capital employed increased to 16.9%, demonstrating the benefits of enhanced operational performance and our investment strategy. Earnings per share increased to 16.3%, up from 9.8% in the prior period. The group's balance sheet remains a key strength, supported by net assets of GBP 51 million and a pension scheme surplus, providing a strong platform for future growth and investment. Looking in more detail at the income statement, underlying operating profit increased from GBP 1.4 million last year to GBP 2.8 million in the current period.

Speaker #3: Earnings per share increased to 16.3%, up from 9.8% in the prior period. The group's balance sheet remains a key strength, supported by net assets of £51 million and a pension scheme surplus, providing a strong platform for future growth and investment.

Speaker #4: Underlying operating margin also improved to 5.1%, compared with 3.3% last year. Underlying return on capital employed increased to 16.9%, demonstrating the benefits of enhanced operational performance and our investment strategy.

Speaker #3: Looking in more detail at the income statement, underlying operating profit increased from 1.4 million last year to 2.8 million in the current period. Although the period noted a higher investment in working capital and a consequent reduction in net cash balances, we continue to maximize returns on surplus cash deposits, generating interest income of £294,000.

Speaker #4: Earnings per share increased to 16.3%, up from 9.8% in the prior period. The group's balance sheet remains a key strength, supported by net assets of £51 million and a pension scheme surplus, providing a strong platform for future growth and investments.

Speaker #3: Non-underlying restructuring costs of £229,000 were incurred during the period, reflecting the substantial completion of the closure of the Yate facility with the site now fully cleared and marketed for sale.

Speaker #4: Looking in more detail at the income statement, underlying operating profit increased from £1.4 million last year to £2.8 million in the current period. Although the period noted a higher investment in working capital and a consequent reduction in net cash balances, we continue to maximize returns on surplus cash deposits.

Speaker #3: This slide illustrates the movement in cash during the period and our approach remains one of disciplined capital allocation. The underlying profitability generated cash, although this was offset by increased working capital requirements during the first half of the year.

Dave Jones: Although the period noted a higher investment in working capital and a consequent reduction in net cash balances, we continue to maximize returns on surplus cash deposits, generating interest income of GBP 294,000. Non-underlying restructuring costs of GBP 229,000 were incurred during the period, reflecting the substantial completion of the closure of the Yate facility, with the site now fully cleared and marketed for sale. This slide illustrates the movement in cash during the period, and our approach remains one of disciplined capital allocation. The underlying profitability generated cash, although this was offset by increased working capital requirements during the H1 of the year. Importantly, the group remains debt-free and retains significant financial resilience. Looking ahead, we expect to realize the value from the Yate facility, with the completion anticipated during the H1 of 2027. To pursue strategic opportunities as they arise.

Speaker #4: Generating interest income of £294,000. Non-underlying restructuring costs of £229,000 were incurred during the period, reflecting the substantial completion of the closure of the Yate facility with the site now fully cleared and marketed for sale.

Speaker #3: Importantly, the group remains debt-free and retains significant financial resilience. Looking ahead, we expect to realize the value from the Yate facility with the completion anticipated during the first half of 2027.

Speaker #3: The proceeds will further strengthen an already robust balance sheet and provide additional flexibility to pursue strategic opportunities as they arise. 2025 materially noted the completion of the group's 5-year capital investment and modernization program.

Speaker #4: This slide illustrates the movement in cash during the period and our approach remains one of disciplined capital allocation. The underlying profitability generated cash, although this was offset by increased working capital requirements during the first half of the year.

Speaker #4: Importantly, the group remains debt-free and retains significant financial resilience. Looking ahead, we expect to realize the value from the Yate facility with the completion anticipated during the first half of 2027.

Speaker #3: One machine replacement was deferred from 2025 and is now ordered and scheduled for installation at Shafton in October. The closure of the Yate facility allowed for some relative new pieces of plant and machinery to be transferred to the Barnsley facilities, and therefore mitigating approximately £3 million to of anticipated future capital expenditure.

Dave Jones: Looking ahead, we expect to realize the value from the Yate facility, with the completion anticipated during the H1 of 2027. To pursue strategic opportunities as they arise.

Speaker #4: The perceived strategic opportunities as they arise. 2025 materially noted the completion of the Group's five-year capital investment and modernization program. One machine replacement was deferred from 2025 and is now ordered and scheduled for installation at Shafton in October.

Speaker #3: The expansion of the tube pump business necessitated a new dedicated facility costing £1.7 million and is now fully operational. Further capacity expansion out options at our Shafton facility are currently being considered, in line with our strategy of driving value from the principal properties that the group owns.

Dave Jones: 2025 materially noted the completion of the group's five-year capital investment and modernization program. One machine replacement was deferred from 2025 and is now ordered and scheduled for installation at Shafton in October. The closure of the Yate facility allowed for some relatively new pieces of plant and machinery to be transferred to the Barnsley facilities and therefore mitigating approximately GBP 3 million of anticipated future capital expenditure. The expansion of the Tubecon business necessitated a new dedicated facility costing GBP 1.7 million and is now fully operational. Further capacity expansion options at our Shafton facility are currently being considered in line with our strategy of driving value from the principal properties that the group owns. 2026 are anticipated to note GBP 2 million of capital expenditure as a result of the deferred machine replacement, before falling to a more normalized level of between GBP 1 million and GBP 2 million from 2027.

Speaker #4: The closure of the Yate facility allowed for some relative new piece of plant and machinery to be transferred to the Barnsley facilities, and therefore mitigating approximately £3 million to anticipated future capital expenditure.

Speaker #3: 2026 anticipated to note £2 million of capital expenditure as a result of the deferred machine replacement, before falling to a more normalized level of between £1 and £2 million from 2027.

Speaker #4: The expansion of the tube cone business necessitated a new dedicated facility costing £1.7 million, which is now fully operational. Further capacity expansion options at our Shafton facility are currently being considered, in line with our strategy of driving value from the principal properties that the group owns.

Speaker #3: Projects to increase capacity leading to new ore extended buildings are not included within the capital expenditure forecast at this time. I will now hand you back to Mark to take you through the group businesses.

Speaker #1: Thanks, Dave. Divisional breakdowns: the organogram shows the makeup of the Billington Holdings Group. TubeCon has noted a smaller proportion of group revenues in the period, although this is expected to be substantially increased in the second half as some significant projects are delivered.

Speaker #4: 2026 is anticipated to note £2 million of capital expenditure as a result of the deferred machine replacement, before falling to a more normalized level of between £1 million and £2 million from 2027.

Dave Jones: 2026 are anticipated to note GBP 2 million of capital expenditure as a result of the deferred machine replacement, before falling to a more normalized level of between GBP 1 million and GBP 2 million from 2027.

Speaker #1: The Billington Structures proportion of the group revenue was increased to £75% in 2026 from £70% in 2025, principally as a result of more normalized portfolio contracts being delivered in the period and a higher proportion of steel content per productive hour.

Speaker #4: Projects to increase capacity, leading to new or extended buildings, are not included within the capital expenditure forecast at this time. I will now hand you back to Mark, who will take you through the group businesses.

Dave Jones: Projects to increase capacity leading to new or extended buildings are not included within the capital expenditure forecast at this time. I will now hand you back to Mark to take you through the group businesses.

Mark Smith: Thanks, Dave. Divisional breakdowns. The organigram shows the makeup of the Billington Holdings Group. Tubecon has noted a smaller proportion of group revenues in the period although this is expected to be substantially increased in the H2 as some significant projects are delivered. The Billington Structures proportion of the group revenue has increased to 75% in 2026 from 70% in 2025, principally as a result of more normalized portfolio contracts being delivered in the period and a higher proportion of steel content per productive hour, and therefore increasing the level of revenue generated. All other group companies remain broadly consistent to 2025 regarding the proportion of revenues generated. Billington Structures project highlights note activity in the most buoyant sectors, data centers, energy from waste, and other projects ongoing throughout a variety of sectors.

Speaker #1: And therefore increasing the level of revenue generated. All other group companies remain broadly consistent to 2025 regarding the proportion of revenues generated. Billington Structures project highlights: no activity in the most buoyant sectors, data centers, energy from waste, and other projects ongoing throughout a variety of sectors.

Speaker #1: The Billington Structures proportion of the group revenue has increased to £75% in 2026 from £70% in 2025. Principally, as a result of more normalized portfolio contracts being delivered in the period and a higher proportion of steel content per productive hour.

Speaker #1: Looking forward, future work is predominantly in this same sectors, although also include project delivery in the defense sector, education, and low carbon energy production, and associated carbon capture facilities.

Speaker #1: And therefore, increasing the level of revenue generated. All other group companies remain broadly consistent through 2025 regarding the proportion of revenues generated. Billington Structures project highlights note activity in the most buoyant sectors—data centers, energy from waste, and other projects ongoing throughout a variety of sectors.

Speaker #1: Peter Marshall Steel Stairs: as in previous years, it can be noted here the wide range of clients as well as in-group trading with Billington Structures: the business continues to operate at year maximum capacity, supported by partners of contractors with strong revenues being noted.

Speaker #1: Looking forward, future work is predominantly in the same sectors, although also include project delivery in the defense sector, education, and low carbon energy production, and associated carbon capture facilities.

Mark Smith: Looking forward, future work is predominantly in the same sectors although also include project delivery in the defense sector, education, and low carbon energy production and associated carbon capture facilities. Peter Marshall Steel Stairs. As in previous years, it can be noted here the wide range of clients as well as in group trading with Billington Structures. The business continues to operate at year maximum capacity supported by partner subcontractors with strong revenues being noted. A wide range of clients, including Billington Structures competitors and principal contractors directly. We have secured a very robust order book looking forward, sharing the same clients as Billington Structures within the same buoyant sectors, namely data, energy from waste, and education. Easi-Edge Site Safety Solutions. As the commercial sector continues to be subdued, Easi-Edge has noted reduced levels of utilizations for its primary product.

Speaker #1: A wide range of clients, including Billington Structures competitors, and principal contractors directly. We have secured a very robust, order-book-looking forward sharing the same clients as Billington Structures within the same buoyant sectors, namely data and energy from waste, and education.

Speaker #1: Peter Marshall Steel Stairs. As in previous years, it can be noted here the wide range of clients as well as in group trading with Billington Structures the business continues to operate at year maximum capacity, supported by partners of contractors with strong revenues being noted.

Speaker #1: EasyEdge: site safety solutions: as the commercial sector continues to be subdued, EasyEdge has noted reduced levels of utilizations for its primary product. The scale and volume of projects for the latter part of 2026 and into 2027 are more encouraging, and higher utilized levels are expected.

Speaker #1: A wide range of clients, including Billington Structures’ competitors and principal contractors directly. We have secured a very robust order book looking forward, sharing the same clients as Billington Structures within the same buoyant sectors, namely data, energy-from-waste, and education.

Speaker #1: There remains a good spread of clients with volumes of work anticipated to increase from Q4 2026. We are investing in replacing our whole barrier fleet with a newly designed lightweight version which we will continue to roll out over the next 18 months.

Speaker #1: EasyEdge site safety solutions, as the commercial sector continues to be subdued, has noted reduced levels of utilization for its primary product. The scale and volume of projects for the latter part of 2026 and into 2027 are more encouraging, and higher utilization levels are expected.

Mark Smith: Easi-Edge Site Safety Solutions. As the commercial sector continues to be subdued, Easi-Edge has noted reduced levels of utilizations for its primary product.

Speaker #1: However, the company continues to note pricing pressure in the market as competitors discount stock to maintain their own utilization. Audit: our environmental hoarding and branded graphic branding solutions have experienced another fantastic trading period for the company with its principal products remaining the product of choice for its customers.

Mark Smith: The scale and volume of projects for the latter part of 2026 and into 2027 are more encouraging and higher utilized levels are expected. There remains a good spread of clients with volumes of work anticipated to increase from Q4 2026. We are investing in replacing our whole barrier fleet with a newly designed lightweight version, which we will continue to roll out over the next 18 months. However, the company continues to note pricing pressure in the market as competitors discount stock to maintain their own utilization. Hoard-it, our environmental hoarding and Brand-It graphic branding solutions have experienced another fantastic trading period for the company with its principal products remaining the product of choice for its customers. Prospects and inquiries are positive, and we are hopeful of another great year in 2026.

Speaker #1: There remains a good spread of clients, with volumes of work anticipated to increase from Q4 2026. We are investing in replacing our whole barrier fleet with a newly designed lightweight version, which we will continue to roll out over the next 18 months.

Speaker #1: Prospects and inquiries are positive, and we're hopeful of another great year in 2026. Branded: the associated marking marketing division of the business continues to expand its product range and deliver its services into both internal audit clients as well as hoarding systems supplied by others.

Speaker #1: However, the company continues to note pricing pressure in the market as competitors discount stock to maintain their own utilization. Audit our environmental hoarding and brand-it graphic branding solutions have experienced another fantastic trading period for the company, with its principal products remaining the product of choice for its customers.

Speaker #1: Audit and branded benefit from being able to deliver to all construction sectors including the residential sector, utilizing both sales and hire models. Shafton Steel Services: is one of our largest steel processing businesses in the UK, servicing internal and external clients with the cutting, burning, drilling, and processing of heavy steel plate.

Speaker #1: Prospect and inquiry is a positive and we're hopeful of another great year in 2026. Brand it the associated marking marketing division of the business continues to expand its product range and deliver its services into both internal audit clients as well as hoarding systems supplied by others.

Mark Smith: Brand-It, the associated marketing division of the business, continues to expand its product range and deliver its services into both internal Hoard-it clients, as well as hoarding systems supplied by others. Hoard-it and Brand-It benefit from being able to deliver to all construction sectors, including the residential sector, utilizing both sales and hire models. Shafton Steel Services is one of our largest steel processing businesses in the UK, servicing internal and external clients with the cutting, burning, drilling, and processing of heavy steel plate. A further heavy-duty saw drill line is ordered and will be installed in October 2026, following the deferral of the last item of machinery within the group's capital expenditure and modernization program. Shafton Steel Services are extremely busy, currently servicing its internal clients, Billington Structures and Peter Marshall Steel Stairs.

Speaker #1: A further heavy-duty saw drill line is ordered, and will be installed in October 2026, following the deferral of the last item of machinery within the group's capital expenditure and modernization program.

Speaker #1: Audit and Brandit benefit from being able to deliver to all construction sectors, including the residential sector, utilizing both sales and hire models. Shafton Steel Services.

Speaker #1: Shafton Steel Services are extremely busy, currently servicing its internal clients, Billington Structures, and Peter Marshall Steel Stairs. However, there is a good external work for respected competitors in construction, engineering, as well as wider steel sectors.

Speaker #1: It is one of our largest steel processing businesses in the UK, servicing internal and external clients with the cutting, burning, drilling, and processing of heavy steel plate.

Speaker #1: A further heavy duty saw drill line is ordered and will be installed in October 2026 following the deferral of the last item of machinery within the group's capital expenditure and modernization program.

Speaker #1: With the above in mind, there is a very strong pipeline throughout the remainder of 2026 and into 2027. Specialist protective coatings: this specialist facility supports the group's wider requirements for the application of high-tech treatments and fire protective coatings for internal group companies as well as the wider construction and oil-gas pipeline industries.

Speaker #1: Shafton Steel Services are extremely busy, currently servicing its internal clients—Billington Structures and Peter Marshall Steel Stairs. However, there is good external work from respected competitors in construction, engineering, as well as the wider steel sectors.

Mark Smith: However, there is a good external work for respected competitors in construction, engineering, as well as wider steel sectors. With the above in mind, there is a very strong pipeline throughout the remainder of 2026 and into 2027. Specialist Protective Coatings. This specialist facility supports the group's wider requirements for the application of high-tech treatments and fire protected coatings for internal group companies, as well as the wider construction and oil gas pipeline industries. The group is yielding the benefit from the significant investment in automated equipment. We are seeing a significant increase in demand for intumescent fire-resistant painting of structural steelwork in the UK as a result of the most buoyant market sectors regularly specifying these offsite treatments. Many external clients, which is anticipated to continue at current levels well into 2027. There has also been work carried out and continues for respected competitors to Billington Structures.

Speaker #1: The group is yielding the benefit from these significant investment in automated equipment. We are seeing a significant increase in demand for intrumescent fire-resistant painting of structural steelwork in the UK as a result of the most buoyant market sectors regularly specifying these offsite treatments.

Speaker #1: With the above in mind, there is a very strong pipeline throughout the remainder of 2026 and into 2027. Specialist protective coatings—this specialist facility supports the group's wider requirements for the application of high-tech treatments and fire protective coatings for internal group companies, as well as the wider construction and oil & gas pipeline industries.

Speaker #1: The company is operating at full capacity working for Billington Structures, Peter Marshalls, TubeCon, and many external clients, which is anticipated to continue at current levels well into 2027.

Speaker #1: The group is yielding the benefit from these significant investments in automated equipment. We are seeing a significant increase in demand for intumescent fire-resistant painting of structural steelwork in the UK, as a result of the most buoyant market sectors regularly specifying these offsite treatments.

Speaker #1: There has also been work carried out and continues for respected competitors to Billington Structures. The company continues to deliver projects for the water industry, specifically replacement pipelines: the program for replacing water pipelines is taking longer to gain momentum than we had originally anticipated.

Speaker #1: The capabilities of the Shafton facility in Sheffield set it aside from other painting contractors operating in the market. TubeCon specialist steel and bridge division: the team are now fully embedded within Billington Structures.

Speaker #1: TubeCon and many external clients, which is anticipated to continue at current levels well into 2027. There has also been work carried out, and continues, for respected competitors to Billington Structures.

Mark Smith: There has also been work carried out and continues for respected competitors to Billington Structures.

Speaker #1: The company continues to deliver projects for the water industry, specifically replacement pipelines. The program for replacing water pipelines is taking longer to gain momentum than we had originally anticipated.

Mark Smith: The company continues to deliver projects for the water industry, specifically replacement pipelines. The program for replacing water pipelines is taking longer to gain momentum than we had originally anticipated. The capabilities of the Shafton facility in Sheffield set it aside from other painting contractors operating in the market. Tubecon Specialist Steel and Bridge Division. The team are now fully embedded within Billington Structures. Tubecon's first contracts have been secured, fabricated, painted, and successfully delivered. The new production facility is fully operational and consistently delivering projects for its clients. The division was awarded its largest order to date and is currently in production with installation scheduled early in 2027. Pleasingly, the margins achieved on these contracts are margin-enhancing to the wider structural steel activities within the group. There is a good order book combined with a strong pipeline of opportunities looking forward, which spans through to the end of 2027.

Speaker #1: TubeCon's first contracts have been secured, fabricated, painted, and successfully delivered. The new production facility is fully operational and consistently delivering projects for its clients.

Speaker #1: The capabilities of the Shafton facility in Sheffield set it aside from other painting contractors operating in the market. TubeCon specialist steel and bridge division—the team are now fully embedded within Billington Structures. TubeCon's first contracts have been secured, fabricated, painted, and successfully delivered.

Speaker #1: The division was awarded its largest order to date, and is currently in production with installation scheduled early in 2027. Pleasingly, the margins achieved on these contracts are margin-enhancing to the wider structural steel activities within the group.

Speaker #1: There is a good order-book combined with a strong pipeline of opportunities looking forward, which spans through to the end of 2027. Further resources to expand available capacity of the division are being implemented.

Speaker #1: The new production facility is fully operational and consistently delivering projects for its clients. The division was awarded its largest order to date and is currently in production, with installation scheduled early in 2027.

Speaker #1: Trevor will now discuss the sustainability and strategic initiatives.

Speaker #2: Thank you, Mark. There has been continued good environmental performance, with the group maintaining its carbon-neutral status. Our established sustainability committee continues to investigate and implement carbon reduction projects to ensure the task sustainability commitments and aspirations are at the heart of the Billington business.

Speaker #1: Pleasingly, the margins achieved on these contracts are margin-enhancing to the wider structural steel activities within the Group. There is a good order book, combined with a strong pipeline of opportunities looking forward, which spans through to the end of 2027.

Mark Smith: There is a good order book combined with a strong pipeline of opportunities looking forward, which spans through to the end of 2027.

Speaker #1: Further resources to expand the available capacity of the division are being implemented. Trevor will now discuss the sustainability and strategic initiatives.

Mark Smith: Further resources to expand available capacity of the division are being implemented. Trevor will now discuss the sustainability and strategic initiatives.

Speaker #2: We have expanded the Billington Apprentice Training Academy, based at Shafton, to accelerate the installation of capacity at our Barnsley facilities and further address the skill shortage within our industry.

Speaker #2: Thank you, Mark. There has been continued good environmental performance, with the Group maintaining its carbon-neutral status. Our established Sustainability Committee continues to investigate and implement carbon reduction projects to ensure that our sustainability commitments and aspirations are at the heart of the Billington business.

Trevor Taylor: Thank you, Mark. There has been continued good environmental performance with the group maintaining its carbon neutral status. Our established sustainability committee continues to investigate and implement carbon reduction projects to ensure that our sustainability commitments and aspirations are at the heart of the Billington business. We have expanded the Billington Fabrication Academy based at Shafton to accelerate the installation of capacity at our Barnsley facilities and further address the skill shortage within our industry. September noted a further intake of 15 apprentices, which are enrolled on a fast-track training program delivered by a dedicated fabrication expert to a syllabus specifically tailored to the activities Billington's undertakes. We continue to uphold our social responsibilities, supporting local and national charities, as well as those charities local to our construction projects through our group charity set up in 2016.

Speaker #2: September noted a further intake of 15 apprentices which are enrolled on a fast-track training program, delivered by a dedicated fabrication expert to a syllabus specifically tailored to the activities Billington's undertakes.

Speaker #2: We continue to uphold our social responsibilities, supporting local and national charities, as well as those charities local to our construction projects through our group charity set up in 2016.

Speaker #2: September noted a further intake of 15 apprentices, who are enrolled on a fast-track training program delivered by a dedicated fabrication expert to a syllabus specifically tailored to the activities Billington undertakes.

Speaker #2: We also continue to identify local labor and apprentices close to our construction projects. We are Gold members of the 5% Club, an organization that represents businesses that have 5% or more of their workforce in earn-and-learn positions.

Speaker #2: We continue to uphold our social responsibilities, supporting local and national charities as well as those charities local to our construction projects through our group charity, set up in 2016.

Trevor Taylor: We continue to uphold our social responsibilities, supporting local and national charities, as well as those charities local to our construction projects through our group charity set up in 2016.

Speaker #2: This champions our commitment to modern apprenticeships. Cybersecurity and the associated risks are actively addressed, with regular and increased investment in resources being made to ensure the company maintains the highest possible standards.

Trevor Taylor: We also continue to identify local labor and apprentices close to our construction projects. We are gold members of The 5% Club, an organization that represents businesses that have 5% or more of their workforce in earn and learn positions. This champions our commitment to modern apprenticeships. Cybersecurity and the associated risks are actively addressed with regular and increased investment in resources being made to ensure the company maintains the highest possible standards. We respect the governance required in being a listed PLC, and we continue to follow the QCA Corporate Governance Code, implementing changes as new elements of the code come into effect. Our five Ps strategy. Our strategic projects and initiatives are aligned and in consideration of our five strategic pillars.

Speaker #2: We respect the governance required and being listed at PLC, and we continue to follow the QCA code implementing changes as new elements of the code come into effect.

Speaker #2: This champions our commitment to modern apprenticeships. Cyber security and the associated risks are actively addressed with regular and increased investment in resources being made to ensure the company maintains the highest possible standards.

Speaker #2: Our 5Ps strategy: our strategic projects and initiatives are aligned and in consideration of our 5 strategic pillars. Our focus is to proactively identify and manage risk while creating a sustainable, profitable workstream with financially robust clients, using efficient processes to ensure competitiveness and generate a market-leading return for our shareholders.

Speaker #2: We respect the governance required and being listed at PLC and we continue to follow the QCA code implementing changes as new elements of the code come into effect.

Speaker #2: We focus on people, developing, promoting, rewarding, and primarily keeping our staff safe. Properties: updating, modernizing, expanding, and maximizing the facilities to ensure production is safe, efficient, and fit for purpose.

Speaker #2: Our five P's strategy, our strategic projects and initiatives, are aligned and in consideration of our five strategic pillars. Our focus is to proactively identify and manage risk while creating a sustainable, profitable workstream with financially robust clients, using efficient processes to ensure competitiveness and generate a market-leading return for our shareholders.

Trevor Taylor: Our focus is to proactively identify and manage risk while creating a sustainable, profitable work stream with financially robust clients, using efficient processes to ensure competitiveness and generate a market leading return for our shareholders. We focus on people, developing, promoting, rewarding, and primarily keeping our staff safe. Properties, updating, modernizing, expanding, and maximizing the facilities to ensure production is safe, efficient, and fit for purpose. Product, focusing on quality right first time, providing exceptional service to guarantee repeat business that protects our company and our clients. Position. We believe we are the best in the business and aim to maintain this status for our cherished clients, expanding our offering into new markets. Planet. We are committed to ensure that our green initiatives deliver on our commitments and as we as a group play our part in the road to carbon zero.

Speaker #2: Product: focusing on quality, right first time, providing exceptional service to guarantee repeat business that protects our company and our clients. Position: we believe we are the best in the business and aim to maintain this status for our cherished clients expanding our offering into new markets.

Speaker #2: We focus on people—developing, promoting, rewarding, and primarily keeping our staff safe. Properties: updating, modernizing, expanding, and maximizing the facilities to ensure production is safe, efficient, and fit for purpose.

Speaker #2: Planet: we are committed to ensure that our green initiatives deliver on our commitments and as we as a group play our part in the road to carbon zero.

Speaker #2: Products focusing on quality, right first time, providing exceptional service to guarantee repeat business that protects our company and our clients. Position: we believe we are the best in the business and aim to maintain this status for our cherished clients, expanding our offering into new markets.

Speaker #2: Following a period of subdued market activity, the implementation of our capital investment program and the consolidation of our structural steel activities at our Barnsley facilities: we now positively look forward to the future.

Speaker #2: Kevin Campbell, previously the Managing Director of Billington Structures, the subsumed the role of Group Strategic and Special Projects Director. To provide additional capacity with which to investigate and progress some of the many strategic initiatives.

Speaker #2: Planet we are committed to ensure that our green initiatives deliver on our commitments and as we as a group play our part in the road to carbon zero.

Trevor Taylor: We are committed to ensure that our green initiatives deliver on our commitments and as we as a group play our part in the road to carbon zero.

Speaker #2: Following a period of subdued market activity the implementation of our capital investment program and the consolidation of our structural steel activities at our Barnsley facilities we now positively look forward to the future.

Trevor Taylor: Following a period of subdued market activity, the implementation of our capital investment program, and the consolidation of our structural steel activities at our Barnsley facilities, we now positively look forward to the future. Kevin Campbell, previously the Managing Director of Billington Structures, has subsumed the role of Group Strategic and Special Projects Director to provide additional capacity with which to investigate and progress some of the many strategic initiatives. Our record order book allows us to look to the future with confidence and commence our journey on the next phase of our growth strategy. Our strategy will focus on four distinct areas. Fixed asset optimization, deriving more output and associated value from our properties. Targeting markets and clients operating in the most buoyant sectors, namely data centers and power generation. Process automation, both in our factories and throughout our administrative and support functions.

Speaker #2: Our record order book allows us to look to the future with confidence and commenced our journey on the next phase of our growth strategy.

Speaker #2: Our strategy will focus on four distinct areas: fixed assets optimization, deriving more output and associated value from our properties; targeting markets and clients operating in the most buoyant sectors; namely data and power generation; process automation, both in our factories and throughout our administrative and support functions; diversification, into other sectors and products that are able to add value to the group; this will be principally completed through acquisition.

Speaker #2: Kevin Campbell, previously the Managing Director of Billington Structures, subsumed the role of Group Strategic and Special Projects Director to provide additional capacity with which to investigate and progress some of the many strategic initiatives.

Speaker #2: Our record order book allows us to look to the future with confidence and commence our journey on the next phase of our growth strategy.

Speaker #2: Our strategy will focus on four distinct areas: fixed assets optimization; deriving more output and associated value from our properties; targeting markets and clients operating in the most buoyant sectors—namely, data and power generation.

Speaker #2: We have increased our focus on strategic projects and initiatives, this has reduced costs, improved processes, and increased production efficiencies. Further enhancing the margins the group is able to generate for its shareholders.

Speaker #2: Process automation, both in our factories and throughout our administrative and support functions. Diversification into other sectors and products that are able to add value to the Group.

Trevor Taylor: Process automation, both in our factories and throughout our administrative and support functions.

Speaker #2: Our strategy will be executed while ensuring financial, capital resources, our prudently allocated, and taking a cautious approach to identify and mitigate financial and operational risks.

Trevor Taylor: Diversification into other sectors and products which are able to add value to the group. This will be principally completed through acquisition. Reduced costs, improved processes, and increased production efficiencies, further enhancing the margins the group is able to generate for its shareholders. Our strategy will be executed while ensuring financial capital resources are prudently allocated and taking a cautious approach to identify and mitigate financial and operational risks. Over the course of 2026, we have and continue to replace Yate's capacity in Barnsley with further recruitment of fabrication resources on an expanded night shift at Shafton and the commencement of a night shift at the Wombwell facility. These efforts to consolidate the operations of the Yate facility into the two Barnsley sites is consistent with our strategy of reducing our cost per productive hour and seeking to enhance the level of margin the business is able to generate.

Speaker #2: This will be principally completed through acquisition. Reduced costs improved processes and increased production efficiencies. Further enhancing the margins the group is able to generate for its shareholders.

Speaker #2: Over the course of 2026, we have, and continue to, replay Yate's capacity in Barnsley. With further recruitment of fabrication resources, on an expanded night shift at Shafton, and the commencement of a night shift at the Onewell facility, these efforts to consolidate the operations of the Yate facility into the two Barnsley sites is consistent with our strategy of reducing our cost per productive hour and seeking to enhance the level of margin that business is able to generate.

Speaker #2: Our strategy will be executed while ensuring financial capital resources are prudently allocated, and taking a cautious approach to identify and mitigate financial and operational risks.

Speaker #2: Over the course of 2026 we have and continue to replay replace Yates capacity in Barnsley. With further recruitment of fabrication resources on an expanded night shift at Shafton and the commencement of a night shift at the Onewell facility.

Speaker #2: Furthermore, in our quest to increase the volume and level of skilled fabrication resource, we have expanded our Billington Apprenticeship Academy at Shafton, this will take two to three years to produce the necessary level of skilled labor resources, although the investment and foundations have been laid, with the initial intake of 15 apprentices commencing earlier this month.

Speaker #2: These efforts to consolidate the operations of the Yate facility into the two Barnsley sites is consistent with our strategy of reducing our cost per productive hour and seeking to enhance the level of margin the business is able to generate.

Speaker #2: Our objective is now to secure contracts with financially stable clients in our target markets, has been successful in that Billington has secured projects with a number of new financially robust clients with whom credit insurance is attainable.

Speaker #2: Furthermore in our quest to increase the volume and level of skilled fabrication results we have expanded our Billington apprenticeship academy at Shafton. This will take two to three years to produce the necessary level of skilled labor resources.

Trevor Taylor: Furthermore, in our quest to increase the volume and level of skilled fabrication resource, we have expanded our Billington Fabrication Academy at Shafton. This will take two to three years to produce the necessary level of skilled labor resources. Although the investment and foundations have been laid with the initial intake of 15 apprentices commencing earlier this month. Our objective is now to secure contracts with financially stable clients in our target markets, has been successful in that Billington has secured projects with a number of new financially robust clients with whom credit insurance is attainable. With a record order book, we are seeking to partner with end user clients as well as principal contractors to proactively engage with and develop future projects at an earlier stage.

Speaker #2: With a record order book, we are seeking to partner with end-user clients as well as principal contractors, to proactively engage with and develop future projects at an earlier stage.

Speaker #2: Although the investment and foundations have been laid with the initial intake of 15 apprentices commencing earlier this month, our objective is now to secure contracts with financially stable clients in our target markets. This has been successful in that Billington has secured projects with a number of new, financially robust clients with whom credit insurance is attainable.

Speaker #2: This engagement, under certain design contracts, allows Billington to utilize its specialist design resources to positively influence a project and provide program and financial benefits for Billington and its clients.

Speaker #2: In closing, relating to our strategic direction: there are many future projects being investigated and considered, that will seek to increase revenues and enhance margins in our various businesses.

Speaker #2: With a record order book, we are seeking to partner with end-user clients, as well as principal contractors, to proactively engage with and develop future projects at an earlier stage.

Trevor Taylor: This engagement under certain design contracts allows Billington to utilize its specialist design resources to positively influence a project and provide program and financial benefits for Billington and its clients. In closing, relating to our strategic direction, there are many future projects being investigated and considered that will seek to increase revenues and enhance margins in our various businesses. Long-term growth. Our strategies for long-term growth organically and to acquire and diversify with the right opportunities. We continue to drive our margin improvement through modernization and efficiencies, continuing to reinvest profit back into developing the businesses. We continue to have a well-established succession plan, developing, promoting the next generation of managers and directors. In the current market, we have an even stronger commercial focus, working hard to secure the best contracts with fair terms and conditions.

Speaker #2: Long-term growth: our strategy is for long-term growth, organically and to acquire and diversify with the right opportunities. We continue to drive our margin improvement through modernization and efficiencies continuing to reinvest profit back into developing the businesses.

Speaker #2: In closing, relating to our strategic direction, there are many future projects being investigated and considered that will seek to increase revenues and enhance margins in our various businesses.

Speaker #2: We continue to have a well-established succession plan developing promoting the next generation of managers and directors. In the current market, we have an even stronger commercial focus working hard to secure the best contracts with fair terms and conditions.

Speaker #2: Long term growth. Our strategy is for long term growth organically and to acquire and diversify with the right opportunities. We continue to drive our margin improvement through modernization and efficiencies continuing to reinvest profit back into developing the businesses.

Speaker #2: We have the resources to continue to be acquisitive as a group, and we will review all opportunities that complement and diversify the group's operations into areas where we are able to enhance margins and add value.

Speaker #2: We continue to have a well-established succession plan, developing and promoting the next generation of managers and directors. In the current market, we have an even stronger commercial focus, working hard to secure the best contracts with fair terms and conditions.

Trevor Taylor: We continue to have a well-established succession plan, developing, promoting the next generation of managers and directors. In the current market, we have an even stronger commercial focus, working hard to secure the best contracts with fair terms and conditions.

Speaker #2: The wider steel market: the UK government subsumed control of British steel in 2025, with a transfer to public ownership in July of this year.

Speaker #2: British steel continues to supply the UK construction and other steelwork markets. After a period of relative stability in relation to steel prices, 2026 started to note steady increases.

Speaker #2: We have the resources to continue to be acquisitive as a group and we will review all opportunities that complement and diversify the group's operations into areas where we are able to enhance margins and add value.

Trevor Taylor: We have the resources to continue to be acquisitive as a group, and we will review all opportunities that complement and diversify the group's operations into areas where we are able to enhance margins and add value. The wider steel market. The UK government subsumed control of British Steel in 2025 with a transfer to public ownership in July of this year. British Steel continues to supply the UK construction and other steelwork markets. After a period of relative stability in relation to steel prices, 2026 started to note steady increases. The ongoing conflict in the Middle East and the associated escalation in fuel costs is having a consequential inflationary impact to raw material steel costs. Billington is principally hedged for its secured workload, for its raw material steel costs through either price escalation clauses with clients or fixed price arrangements with steel manufacturers or stockholders.

Speaker #2: The ongoing conflict in the Middle East and the associated escalation in fuel costs is having a consequential inflationary impact to raw material steel costs.

Speaker #2: The wider steel market. The UK government subsumed control of British Steel in 2025, with a transfer to public ownership in July of this year.

Speaker #2: Billington's is principally hedged for its secured workload, for its raw material steel costs, through either price escalation clauses with clients, or fixed price arrangements with steel manufacturers or stockholders.

Speaker #2: British Steel continues to supply the UK construction and other steelwork markets. After a period of relative stability in relation to steel prices, 2026 has started to see steady increases.

Speaker #2: The UK government announced their steel strategy for the future in March this year. This includes import steel quotas, and their related tariffs, for EU and worldwide imports into the UK, being implemented on the 1st of July this year.

Speaker #2: The ongoing conflict in the Middle East and the associated escalation in fuel costs is having a consequential inflationary impact to raw material steel costs.

Speaker #2: Billington is principally hedged for its secured workload for its raw material steel costs through either price escalation clauses with clients or fixed price arrangements with steel manufacturers or stockholders.

Speaker #2: Quota and tariff levels have been set for varying categories of products utilized within our industry. The level of impact to date has been limited as a result of high stock levels being built up in the UK prior to the new quota regime coming into effect in July.

Speaker #2: The UK government announced their steel strategy for the future in March this year. This includes import steel quotas and their related tariffs for EU and worldwide imports into the UK, being implemented on 1 July this year.

Trevor Taylor: The UK government announced their steel strategy for the future in March this year. This includes import steel quotas and their related tariffs for EU and worldwide imports into the UK being implemented on 1 July this year. Quota and tariff levels have been set for varying categories of products utilized within our industry. The level of impact to date has been limited as a result of high stock levels being built up in the UK prior to the new quota regime coming into effect in July. Future quotas will note an increased volume of materials being affected by the quotas, with those most heavily affected in those products that are not produced in the UK.

Speaker #2: Future quotas will note an increased volume of materials being affected by the quotas, with those most heavily affected being those products that are not produced in the UK.

Speaker #2: The level of quotas for varying product categories will be reviewed again in July 27, and Billington stands with our collective industry in influencing government policy in relation to quota levels along with the categories of products included, within the policy.

Speaker #2: Future quarters will note an increased volume of materials being affected by the quotas with those most heavily affected in those products that are not produced in the UK.

Speaker #2: Billington's forward order book: this slide gives the Billington structures historical order book, combined with the number of secured production hours. The order book stands at a record level, following the recent award of a number of large projects, for delivery in 2027 and into 2028.

Speaker #2: The level of quotas for varying product categories will be reviewed again on July 27, and Billington stands with our collective industry in influencing government policy in relation to quota levels, along with the categories of products included.

Trevor Taylor: The level of quotas for varying product categories will be reviewed again in July 2027. Billington stands with our collective industry in influencing government policy in relation to quota levels, along with the categories of products included within the policy. Billington's forward order book. This slide gives the Billington Structures historical order book, combined with the number of secured production hours. The order book stands at a record level following the recent award of a number of large projects for delivery in 2027 and into 2028. The portfolio of contracts within the current order book are of a less complex nature, which can be noted by the volume of productive hours content relative to the order book value. The above order book is that for Billington Structures, and with the awarded contracts are packages of work for other group companies within the group.

Speaker #2: The portfolio of contracts within the current order book are of a less complex nature, which can be noted by the volume of productive hours content relative to the order book value.

Speaker #2: Within the policy, Billington’s forward order book—this slide gives the Billington Structures historical order book, combined with the number of secured production hours. The order book stands at a record level, following the recent award of a number of large projects for delivery in 2027 and into 2028.

Speaker #2: The above order book is that for Billington structures, and with the awarded contracts are packages of work for other group companies within the group.

Speaker #2: Some projects have and continue to note slippage to on-site programs resulting in management of manufacturer slots and working capital. Future projects in our target markets remain robust, and there are further significant opportunities that Billington's is hopeful of securing that would further extend the visibility of the current order book.

Speaker #2: The portfolio of contracts within the current order book are of a less complex nature which can be noted by the volume of productive hours content relative to the order book value.

Speaker #2: The above order book is that for Billington structures and with the awarded contracts are packages of work for other group companies within the group.

Speaker #2: And finally, Mark will take you through the current market outlook and concluding summary.

Speaker #1: Thanks for that.

Speaker #2: Some projects have and continue to note slippage to onsite programs resulting in management of manufacturer slots and working capital. Future projects in our target markets remain robust and there are further significant opportunities that Billingtons is hopeful of securing that would further extend the visibility of the current order book.

Trevor Taylor: Some projects have and continue to note slippage to on-site programs, resulting in management of manufacture slots and working capital. Future projects in our target markets remain robust, and there are further significant opportunities that Billington is hopeful of securing that would further extend the visibility of the current order book. Finally, Mark will take you through the current market outlook and concluding summary.

Speaker #2: Following a subdued market environment in 2025, it is pleasing to note a number of large projects we have been working on for some time come through as contract orders.

Speaker #2: The current secure workload, combined with a number of highly developed prospects, underpins the broker's forecast for 2027 and starts to see volume secured for an element of 2028.

Speaker #2: 2026 has seen the return of several publicly funded projects in the health and education sectors, that have previously undergone a period of review. Projects and opportunities in the defense sector appear to be increasing, that further provides opportunities for Billington in an established sector.

Speaker #2: And finally, Mark will take you through the current market outlook and concluding summary.

Speaker #1: Thanks for that.

Mark Smith: Thanks, Trevor. Following a subdued market environment in 2025, it is pleasing to note a number of large projects we have been working on for some time come through as contracts. Underpins the broker's forecast for 2027 and starts to see volume secured for an element of 2028. 2026 has seen the return of several publicly funded projects in the health and education sectors that have previously undergone a period of review. Projects and opportunities in the defense sector appear to be increasing. That further provides opportunities for Billington in an established sector. Sectors relating to information technology and power generation remain buoyant, and these sectors are those that Billington has a successful history of delivering in. The acquisition by the UK government of British Steel in July is a positive step for the UK steel industry and provides certainty of domestic supply and production for the future.

Speaker #2: Following a subdued market environment in 2025, it is pleasing to note that a number of large projects we have been working on for some time have come through as contracts.

Speaker #2: Sectors relating to information technology and power generation remain buoyant, and these sectors are those that Billington has a successful history of delivering in. The acquisition by the UK government of Breece Steel in July is a positive step for the UK steel industry, and provides certainty of domestic supply and production for the future.

Speaker #2: Underpins the brokers forecast for 2027 and starts to see volume secured for an element of 2028. 2026 has seen the return of several publicly funded projects in the health and education sectors that have previously undergone a period of review projects and opportunities in the defense sector appear to be increasing that further provides opportunities for Billington in an established sector.

Speaker #2: We are eager to see and understand the strategic direction and investment plans for steelmaking at Breece Steel, as it seeks to replace its aging blast furnaces at Scunthorpe.

Speaker #2: Sectors relating to information technology and power generation remain buoyant, and these are sectors in which Billington has a successful history of delivering. The acquisition by the UK government of Bree Steel in July is a positive step for the UK steel industry and provides certainty of domestic supply and production for the future.

Speaker #2: Recent steel price increases associated with the ongoing conflict in the Middle East, combined with navigating the newly imposed quotas and related tariffs, has created a period of uncertainty for raw material price inflation.

Mark Smith: The acquisition by the UK government of British Steel in July is a positive step for the UK steel industry and provides certainty of domestic supply and production for the future.

Speaker #2: We remain alert to possible future impacts on consumer and client confidence in the UK. Credit insurance, where possible, is put in place, which remains essential given the current market.

Speaker #2: We are eager to see and understand the strategic direction and investment plans for steelmaking of Bree Steel as it seeks to replace its aging glass furnaces at Scunthorp.

Mark Smith: We are eager to see and understand the strategic direction and investment plans for steelmaking at British Steel as it seeks to replace its aging blast furnaces at Scunthorpe. Recent steel price increases associated with the ongoing conflict in the Middle East, combined with navigating the newly imposed quotas and related tariffs, has created a period of uncertainty for raw material price inflation. We remain alert to possible future impacts on consumer and client confidence in the UK. Credit insurance, where possible, is put in place, which remains essential given the current market. However, with long-standing clients with whom we repetitively deliver, combined with our strategic approach to broaden our client base, continues to ensure that Billington is able to mitigate risk and secure sufficient volumes of work in the most robust market sectors. In summary, operations.

Speaker #2: However, with long-standing clients with whom we repetitively deliver, combined with our strategic approach to broaden our client base continues to ensure that Billington is able to mitigate risk and secure sufficient volumes of work in the most robust market sectors.

Speaker #2: Recent steel price increases associated with the ongoing conflict in the Middle East combined with navigating that newly imposed quotas and related tariffs has created a period of uncertainty for raw material price inflation.

Speaker #2: We remain alert to possible future impacts on consumer and client confidence in the UK. Credit insurance where possible is put in place which remains essential given the current market.

Speaker #2: In summary, operations: the capital investment and modernization program has been hugely successful, and the investments made at our Barnsley facilities has ensured that raw materials can be efficiently processed as we continue to increase output at these facilities.

Speaker #2: However with longstanding clients with whom we repetitively deliver combined with our strategic approach to broaden our client base continues to ensure that Billington is able to mitigate risk and secure sufficient volumes of work in the most robust market sectors.

Speaker #2: We have strengthened our commitment to local employment and modern apprenticeships from September 2026 through the expansion of our Better Well apprentice training academy located at Shafton.

Speaker #2: The investment into the TubeCon facility and the securing of its largest order book to date provides optimism for the future trading and expansion of this division.

Speaker #2: In summary operations the capital investment and modernization program has been hugely successful and the investments made at our Barnsley facilities has ensured that raw materials can be efficiently processed as we continue to increase output at these facilities.

Mark Smith: The capital investment and the modernization program has been hugely successful, and the investments made at our Barnsley facilities has ensured that raw materials can be efficiently processed as we continue to increase output at these facilities. We have strengthened our commitment to local employment and modern apprenticeships from September 2026 through the expansion of our Billington Fabrication Academy located at Shafton. The investment into the Tubecon facility and the securing of its largest order book to date provides optimism for the future trading and expansion of this division. Our continued focus on strategic initiatives and projects will ensure that we continue to drive operational improvements and enhance the margins we are able to deliver for our stakeholders. Forward order book and pipeline. The outlook for the group is encouraging.

Speaker #2: Our continued focus on strategic indicatives and projects will ensure that we continue to drive operational improvements and enhance the margins we are able to deliver for our stakeholders.

Speaker #2: We have strengthened our commitment to local employment and modern apprenticeships from September 2026, through the expansion of our Betterwell Apprentice Training Academy located at Shaft.

Speaker #2: Forward order book and pipeline: the outlook for the group is encouraging. With a record order book of projects across multiple market sectors, our workflow for the remainder of 2026 and through to 2028 is populated by projects in the most robust sectors, mainly power, generation, data, defense, and education.

Speaker #2: The investment into the Tubecon facility and the securing of its largest order book to date provides optimism for the future trading and expansion of this division.

Speaker #2: Many of our future opportunities and prospects are of a similar nature. The current order book largely underpins the market forecast for 2027, although we remain mindful of ongoing global events that may have an impact on future schemes because of cost estimation.

Speaker #2: Looking forward, the order book and pipeline outlook for the group is encouraging, with a record order book of projects across multiple market sectors. Our workload for the remainder of 2026 and through to 2028 is populated by projects in the most robust sectors, mainly power generation, data, defense, and education. Many of our future opportunities and prospects are of a similar nature.

Mark Smith: With a record order book of projects across multiple market sectors, our workload for the remainder of 2026 and through to 2028 is populated by projects in the most robust sectors, mainly power, generation, data, defense, and education. Many of our future opportunities and prospects are of a similar nature. The current order book largely underpins the market forecast for 2027, although we remain mindful of ongoing global events that may have an impact on future schemes because of cost escalation. Several contracts continue to be subject to client-led delays, although they are being actively managed to ensure that the production facilities remain fully utilized. Financial. We move through the H2 of 2026 with a diversified order book, encouraging further prospects in our target markets and confidence to further grow and develop the group's activities.

Speaker #2: Several contracts continue to be subject to client-led delays, although they are being actively managed to ensure that the production facilities remain fully utilized. Financial: we move through the second half of 2026 with a diversified order book encouraging further prospects in our target markets and confidence to further grow and develop the group's activities.

Speaker #2: The current order book largely underpins the market forecast for 2027 although we remain mindful of ongoing global events that may have an impact on future schemes because of cost estimation.

Speaker #2: While there has been a short-term increase in the working capital requirements, associated with the increase in workload, the group continues to be debt-free and will use its strong cash reserves to capitalize on any complementary acquisitions.

Speaker #2: Several contracts continue to be subject to client led delays although they are being actively managed to ensure that the production facilities remain fully utilized.

Speaker #2: Financially, we move through the second half of 2026 with a diversified order book, encouraging further prospects in our target markets and confidence to further grow and develop the Group's activities.

Speaker #2: Our robust balance sheet and strong cash balance and proven track record of delivery of the most complex of projects positions Billington's as the steelwork fabricator of choice for many of its clients in the UK.

Speaker #2: While there has been a short-term increase in the working capital requirements associated with the increase in workload, the group continues to be debt-free and will use its strong cash reserves to capitalize on any complementary acquisitions.

Mark Smith: While there has been a short-term increase in the working capital requirements associated with the increase in workload, the group continues to be debt-free and will use its strong cash reserves to capitalize on any complementary acquisitions. Our robust balance sheet, strong cash balance, and proven track record of delivery of the most complex of projects positions Billington as the steelwork fabricator of choice for many of its clients in the UK. I would like to thank you all for taking the time to join us today. We will now take your questions. Thank you.

Speaker #2: I would like to thank you all for taking the time to join us today.

Speaker #1: We will now take your questions. Thank you.

Speaker #3: That's great. Thank you very much for your presentation. This afternoon, and if I may just bring up your camera. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen.

Speaker #2: Our robust balance sheet, strong cash balance, and proven track record of delivery of the most complex projects position Billington as the steelwork fabricator of choice for many of its clients in the UK.

Speaker #3: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed by our investor dashboard.

Speaker #3: As you can see, we have received a number of questions about today's presentation, so please ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Speaker #2: I would like to thank you all for taking the time to join us today.

Speaker #1: We will now take your questions. Thank you.

Speaker #3: That's great. Thank you very much for your presentation. This afternoon and if I may just bring up your camera ladies and gentlemen please do continue to submit your questions just by using the Q&A tab situated on the right hand corner of your screen just while the company take a few moments to review those questions submitted today I'd like to remind you a copy of the slides and the published Q&A can be accessed by our investor dashboard as you can see we have received a number of questions throughout today's presentation so please ask you to read out the questions and give responses where appropriate to do so and I'll pick up from you at the end.

Speaker #4: Good afternoon. I'm Mark Smith, CEO, and I'm happy along with Trevor and Dave to answer quite a few questions that have been submitted following the presentation.

Operator: That is great. Thank you very much for your presentation this afternoon. If I may just bring up your camera. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. As you can see, we have received a number of questions throughout today's presentation. So please may I ask you to read out the questions and give responses where appropriate to do so, and we will pick up from you at the end.

Speaker #4: So we'll take these in turn. Number one, could you give an overview of the market sectors within your current order book? So currently, the data center market is about 40% of the energy from waste markets, about 30%.

Speaker #4: Good afternoon. I'm Mark Smith, CEO, and I'm happy, along with Trevor and Dave, to answer quite a few questions that have been submitted following the presentation. So we'll take these in turn. Number one: could you give an overview of the market sectors within your current order book?

Mark Smith: Good afternoon. I am Mark Smith, CEO, and I am happy, along with Trevor and Dave, to answer quite a few questions that have been submitted following the presentation. So we will take these in turn. Number one, could you give an overview of the market sectors within your current order book?

Speaker #4: TubeCon and Breece is about 10%, and then other areas, carbon capture about 8%, defense 6%, and education about 6%. Number question two, I can pick the one

Speaker #1: up, Mark. So the second one is, do you anticipate any further reduction in cash balance? You can also see the one following that as well fairly interlinked.

Speaker #4: So currently the data center market is about 40% of the energy from waste markets about 30% tubecon and bridges about 10% and then other areas carbon capture about 8% defense 6% and education.

Trevor Taylor: Currently, the data center market is about 40%, the energy from waste market is about 30%, Tubecon and Bridges about 10%, and then other areas, carbon capture about 8%, defense 6%, and edu-

Mark Smith: Currently, the data center market is about 40%, the energy from waste market is about 30%, Tubecon and Bridges about 10%, and then other areas, carbon capture about 8%, defense 6%, and edu-

Speaker #1: It's the balance sheet shows a large increase in work in progress. Does the board expect the figure to be much lower by the year end?

Speaker #1: Well, in terms of the cash and obviously the cash position at the half-year, it was a particularly low point, and we don't expect it to go below £12 million throughout the year.

Speaker #1: As we mentioned in the presentation, the average cash balance for that first half-year was £17 million, and generally we saw fluctuation in cash of between £15 to £20 million was the normalized position.

Speaker #5: I can pick the one up Mark so second one is do you anticipate any further reduction in cash balance can also see the one following that as well fairly interlinked it's the the balance sheet shows a large increase in work in progress does does the board expect the figure to be much lower by the year end well in terms of the cash and obviously the right the the cash position at at the half year was a particular low point and we don't expect it to go below 12 million throughout the year as we mentioned in the presentation the average cash balance for that first half year was 17 million and generally we saw fluctuation in cash of between 15 to 20 million was the normalized position we very much expect that to continue into the second half as well so it is slight to remain slightly subdued and still slightly higher work in progress than we've had historically but actually we're starting to see that unwind and we will continue to see that unwind in part towards the year end where we'll be back up to around the 20 million mark so yes yes cash does continue to fluctuate and we still use we use our cash for the work for to manage that working capital as we have always done but yeah we we are starting to see that unwind and should continue toward back towards the 20 million

Dave Jones: I can pick that one up, Mark. So second one is, do you anticipate any further reduction in cash balance? Can also see the one following that as well, fairly interlinked. It is the balance sheet shows a large increase in work in progress. Does the board expect the figure to be much lower by the year-end? Well, in terms of the cash, and absolutely right, the cash position at the H1 was a particularly low point, and we do not expect it to go below GBP 12 million throughout the year. As we mentioned in the presentation, the average cash balance for that H1 of the year was GBP 17 million, and generally we saw a fluctuation in cash of between GBP 15 million to GBP 20 million was the normalized position. We very much expect that to continue into the H2 as well.

Dave Jones: I can pick that one up, Mark. So second one is, do you anticipate any further reduction in cash balance? Can also see the one following that as well, fairly interlinked. It is the balance sheet shows a large increase in work in progress. Does the board expect the figure to be much lower by the year-end? Well, in terms of the cash, and absolutely right, the cash position at the H1 was a particularly low point, and we do not expect it to go below GBP 12 million throughout the year. As we mentioned in the presentation, the average cash balance for that H1 of the year was GBP 17 million, and generally we saw a fluctuation in cash of between GBP 15 to 20 million was the normalized position. We very much expect that to continue into the H2 as well.

Speaker #1: We very much expect that to continue into the second half as well, so it is slight to remain slightly subdued and still slightly higher work in progress than we've had historically, but actually we're starting to see that unwind, and we will continue to see that unwind in part towards the year end, where we'll be back up to around the £20 million mark.

Speaker #1: So yes, cash does continue to fluctuate, and we still use our cash for the work for to manage that working capital, as we have always done.

Speaker #1: But yeah, we are starting to see that unwind, and should continue toward back towards the £20 million.

Dave Jones: It remains slightly subdued and still slightly higher work in progress than we have had historically. But actually, we are starting to see that unwind, and we will continue to see that unwind in part towards the year-end, where we will be back up to around the GBP 20 million mark. Yes, cash does continue to fluctuate, and we use that cash to manage that working capital as we have always done. But yeah, we are starting to see that unwind and should continue back towards the GBP 20 million.

Speaker #4: Okay. Question four. Okay. I'll take that one. You describe a record order book providing visibility into 2027 and for some projects into 2028. Can you quantify its current value, expected revenue conversion by year and margin quality?

Speaker #4: Okay. We said the current order book principally underpins the focus forecasts for 2027. So the order book really reflects about £75% of the broker's forecast for 2027.

Trevor Taylor: Okay. Question 4. Okay, I will take that one. You describe a record order book providing visibility into 2027 and for some projects into 2028. Can you quantify its current value, expected revenue conversion by year, and margin quality? Okay. We said the current order book principally underpins the broker's forecasts for 2027. So the order book really reflects about 75% of the broker's forecast for 2027. We do expect some contracts to grow within there that may take some further capacity. Also, about 12%, between 10% and 15% at least, is 2028, and is covered. And I think we would describe the margin as consistent with what we believe the 2026 outturn to be. Okay, number 5.

Speaker #1: Okay, question four. Okay, I'll take that one. You describe a record order book providing visibility into 2027 and, for some projects, into 2028. Can you quantify its current value, expected revenue conversion by year, and margin quality?

Speaker #4: We do expect some contracts to grow within there that may take some further capacity. Also about 12% between 10 and 15 at least is 2028 and is covered.

Speaker #4: And I think we've described the margin as consistent with what we believe the 2026 outturns to be. Okay. Number four. Number five. Dave's five year.

Speaker #2: Okay, we've said the current order book principally underpins the broker's forecasts for 2027, so the order book really reflects about 75% of the broker's forecast for 2027. We do expect some contracts to grow within there that may take some further capacity. Also, about 12%—between 10 and 15%, at least—is 2028 and is covered. And I think we've described the margin as consistent with what we believe the 2026 outturns about.

Speaker #1: So that was so how much of the 13.9 million H1 increase in contracts work in progress has converted into cash since June? And what working capital outflow should investors expect as the order book grows?

Speaker #1: But I think we've pretty much covered that in the earlier question. And broadly, the we don't expect any significant increase in working capital in the long term.

Speaker #1: It's more just timing and project delivery at certain points in time, which can lead to fluctuations over various periods.

Speaker #1: Okay, number four, number five. So, that was, "How much of a £13.9 million H1 increase in contracts work in progress has converted into cash since June, and what working capital outflow should investors expect as the order book grows?" But I think we've pretty much covered that in the earlier question, and broadly, we don't expect any significant increase in working capital in the long term. It's more just timing and project delivery at certain points in time, which can lead to fluctuations over various periods.

Speaker #4: Six. I'll take that. How much of the 42 million data center award is expected to be recognized in 2026, 2027, and 2028? I would suggest £5 million in 2026, £13 million in 2027, and £7 million in 2028, although we are expecting some of those contracts to grow in value throughout through variation.

Dave Jones: Number 5. That one says how much of the GBP 13.9 million H1 increase in contract work in progress has converted into cash since June? And what working capital outflow should investors expect as the order book grows? But I think we have pretty much covered that in the earlier question, and broadly, we do not expect any significant increase in working capital in the long term. It is more just timing and project delivery at certain points of time, which can lead to fluctuations over various periods.

Speaker #4: So probably answers that one. Seven.

Trevor Taylor: Six. I will take that. How much of the GBP 42 million data centers award is expected to be recognized in 2026, 2027, and 2028? I would suggest GBP 5 million in 2026, GBP 13 million in 2027, and GBP 7 million in 2028, although we are expecting some of those contracts to grow in value throughout through variation. That probably answers that one. Seven.

Speaker #4: Six, I'll take that. How much of the £42 million data center award is expected to be recognized in 2026, 2027, and 2028? I would suggest £5 million in 2026, £13 million in 2027, and £7 million in 2028, although we are expecting some of those contracts to grow in value throughout, through variation. So, that probably answers that one. Seven.

Speaker #1: I can take that one. So that's about the eight sites. So it says roughly what net proceeds do you hope to receive from selling the eight sites?

Speaker #1: Well, for the site, we've not published what proceeds we expect to receive. However, we can say for that is that the properties were all revalued in the last couple of years, and we expect the book value that it's currently held at in the books to be recovered on sale.

Speaker #1: And that's the only indications as well what we've had as well from the advisors. We've gone into market. We don't expect particularly any gain or loss result from the sale that we expect to complete in the first half of next year.

Dave Jones: I can take that one. That is about the Yate site. It says, roughly what net proceeds do you hope to receive from selling the Yate site? Well, for the site, we have not published what proceeds we expect to receive. However, I can say for that is that the properties were all revalued in the last couple of years, and we expect the book value that it is currently held at in the books to be recovered on sale. That is the early indications as well, what we have had as well from the advisors. We are going to market. We do not expect particularly any gain or loss to result from the sale that we expect to complete in the H1 of next year.

Speaker #5: I can take that one, so that's about the eight sites. So it says, roughly what net proceeds do you hope to receive from selling the eight sites? Well, for the sites, we've not published what proceeds we expect to receive. However, what we can say for that is that the properties were all revalued in the last couple of years, and we expect the book value that it's currently held at in the books to be recovered on sale. And that's the early indications as well, what we've had from the advisors as we've gone to market. We don't expect particularly any gain or loss to result from the sale. We expect to complete in the first half of next year.

Speaker #4: Eight. Okay. I'll take that one. Given the length of time you've held significant cash balances, without using it to expand the business, surely it is time to use it or lose it.

Speaker #4: I think the last five or six years while we've undergone the capital investment program, we've invested heavily into machines, building improvements. We've constructed a new building and facility for our newly established TubeCon business.

Trevor Taylor: Eight.

Speaker #1: Eight okay I'll take that one given the length of time you've held significant cash balances without using it to expand the business surely it is time to use it or lose it I think the last five or six years while we've undergone the capital investment program we've invested heavily into machines building improvements we've constructed a new building and facility for our newly established tube con business always looking for the next opportunity to either grow enhance or diversify our business operations and it's a story moving forward as well we one of the questions I can see below is about capacity and how we may seek to further increase capacity throughout the group for some of the smaller companies as well as for.

Speaker #4: Always looking for the next opportunity to either grow, enhance, or diversify our business operations. And it's a story moving forward as well. We one of the questions I can see below is about capacity and how we may seek to further increase capacity throughout the group for some of the smaller companies as well as for Billington Structures.

Dave Jones: Okay.

Trevor Taylor: You want that?

Dave Jones: I will take that one. Given the length of time you have held significant cash balances without using it to expand the business, surely it is time to use it or lose it. I think the last five or six years, while we have undergone the capital investment program, we have invested heavily into machines, building improvements. We have constructed a new building and facility for our newly established Tubecon business. Always looking for the next opportunity to either grow, enhance, or diversify our business operations. It is the story moving forward as well. One of the questions I can see below is about capacity and how we may seek to further increase capacity throughout the group for some of the smaller companies as well as ability.

Speaker #4: So we're looking at a number of ideas to increase the footprint and resources in a number of the businesses to allow expansion which will all follow a similar theme to our strategy of consolidating output and business streams on our current facilities.

Speaker #4: An expanding that and generating more margin therefrom. So with the eight proceeds, and our plans to further increase capacity, we plan on putting some of that what's redeemed as surplus cash to use to expand the Okay.

Dave Jones: Looking at a number of ideas to increase the footprint and resources in a number of the businesses to allow expansion, which will all follow a similar theme to our strategy of consolidating output and business streams on our current facilities.

Speaker #4: How do Billington insure consistent supply of steel for competitive price? We tender it. We principally we look at buying directly from a mill as we're able to purchase closer to our cut lengths.

Trevor Taylor: Expanding that and generating more margin therefrom. With the Yate proceeds and our plans to further increase capacity, we plan on putting some of that what is redeemed as surplus cash to use to expand the business.

Speaker #4: And so less waste. But we also then challenge our mill partner suppliers with buying from stockholders as well. So where we can, we further buy from the mill, but we're mindful of the fact that if we've got to hit delivery dates, and the mill rollings don't suit, we'll equally buy from the largest of steel stockholders.

Mark Smith: Okay. How do Billington ensure consistent supply of steel for a competitive price?

Trevor Taylor: We tender it. Principally, we look at buying directly from a mill, as we are able to purchase closer to our cut lengths, so less waste. We also then challenge our mill partner suppliers with buying from stockhold as well. Where we can, we prefer to buy from the mill, but we are mindful of the fact that if we have got to hit delivery dates and the mill rollings do not suit, we will equally buy from the largest of steel stockholders.

Speaker #4: Eleven.

Speaker #1: And I'll take that one.

Speaker #4: Please could you provide a little colour on possible areas for M&A and the potential size of any deals? Well, we are more actively looking at some opportunities.

Speaker #4: Areas that would be of interest to us are infrastructure related, rail, road, as well as power and power generation and renewable energies. So we see those areas as specialisms ones that Billingtons can support with some of its activities but not ones that we have either the capacity or some of the specialisms in-house and therefore be done by acquisition.

Trevor Taylor: 11. I will take that one, Mark.

Trevor Taylor: Well, we are more actively looking at some opportunities. Areas that would be of interest to us are infrastructure related, rail, road, as well as power and power generation and renewable energies. We see those areas as specialisms, ones that Billington can support with some of its activities, but not ones that we have either the capacity or some of the specialisms in-house, and therefore be done via acquisition. In question to size, well, what looks good, not always available at the time, but we see acquisitions of 10% or 20% of our current turnover level being reasonable, affordable, and achievable with the resources both in terms of management and financial.

Speaker #4: In question to size, well, what looks good, not always available at the time, but we see acquisitions of 10 or 20 percent of our current turnover level being reasonable, affordable, and achievable with the resources both in terms of management and financial.

Speaker #3: Note 12, you've already answered, I think, Trevor. Question, 13, can condition notes of steel prices have risen by around 25%? That's principally on of energy.

Speaker #3: I think energy they've quoted as saying that has gone up 70% since February. And then I think scrap has gone up. I know it's been fairly stable.

Speaker #3: And I think they're rising coke prices now. So however volume has been down in the market, which has kept the steel price fairly stable of late.

Mark Smith: Note 12, you have already answered I think, too. Question 13, Cavendish notes that steel prices have risen by around 25%. That is principally on their input costs of energy. I think energy they have quoted as saying that has gone up 70% since February. I think scrap has gone up. Iron ore has been fairly stable, and I think they are rising coke prices now. However, volume has been down in the market, which has kept the steel price fairly stable of late. What are the opportunities and risks associated for this for 2027, especially in light of the steel hedges the company has in place?

Speaker #3: What are the opportunities and risks associated for this for 2027, especially in light of the steel hedges the company has in place? We try and hedge our input costs for steel material the opportunities arise when we're able to hedge at a better price at point of order than we have in the estimate.

Speaker #3: The risks are that we hedge our major steel prices but consumables are still at risk. So if we get welding wire and associated consumables go up, then we stand at risk to that as well as some specialist materials that we have to buy as export.

Trevor Taylor: We try and hedge our input cost for steel material. The opportunities arise when we are able to hedge at a better price at point of order than we have in the estimate. The risks are that we hedge our major steel prices, but consumables are still at risk. If we get welding wire and associated consumables go up, then we stand at risk to that, as well as some specialist materials that we have to buy as export. But they are fairly minor in the scheme of things.

Speaker #3: But they're fairly minor in the scheme of things.

Speaker #4: 14.

Speaker #1: And I'll take that mark. Kevin Dishes, £5.15, target price. He's 3.4 times EV, bit down. Do you feel this is a fair reflection of the business?

Speaker #1: And does that represent good value?

Speaker #4: Well, we believe we are good value. We believe we're on a growth trajectory moving forward. We have the resources to expand grow, improve, and deliver well for our clients.

Mark Smith: 14. Okay. I will take that, Mark. Cavendish’s GBP 5.15 target price is 3.4x EV/EBITDA. Do you feel this is a fair reflection of the business, and does that represent good value?

Speaker #4: So we believe we're good value. We have a prudent policy regarding our financials. We like to hold cash. We like to own our properties.

Speaker #4: We like to be well invested. We will continue to be so. And yes, we believe we are good value.

Trevor Taylor: Well, we believe we are good value. We believe we are on a growth trajectory moving forward. We have the resources to expand, grow, improve, and deliver well for our clients. So we believe we are good value. We have a prudent policy regarding our financials. We like to hold cash. We like to own our properties. We like to be well invested. We will continue to be so and yes, we believe we are good value.

Speaker #3: We are going to have to terminate some of these questions, I guess, because there's still coming thick and fast. You say the company has a record order book with seems a bit coy about pulling the value on it.

Speaker #3: Please do so. We never have published that. We give an indication of where it sits both in relative to previous years and we have put a indicative line on there for production hours.

Speaker #4: Absolutely.

Mark Smith: We are going to have to terminate some of these questions, I guess, because they are still coming thick and fast. You say the company has a record order book, but seemed a bit coy about putting a value on it. Please do so. We never have published that. We give an indication of where it sits, both relative to previous years, and we have put an indicative line on there for production hours.

Speaker #1: There's a question about our pension scheme. Number 18, Dave, do you want to touch on that one?

Speaker #2: Yes, that one says, what surplus do you expect to receive from the pension buyout and when do you expect this to be received? And have recent bond yield increased improve the surplus has it seemed rather it's been hedged at this point.

Speaker #2: Well, on the last point first, yes, it's been hedged for a good long while now. So there's been no particular change to the surplus.

Speaker #2: We don't expect a great deal of surplus coming out of the buyout maybe a few hundred grand and that would be a bonus really to come out.

Trevor Taylor: Absolutely. There is a question about our pension scheme, number 18. Dave, do you want to touch on that one?

Dave Jones: Yes, that one says, what surplus do you expect to receive from the pension buyout, and when do you expect this to be received? Have recent bond yield increases improved the surplus, as it seems rather it has been hedged at this point? Well, on the change to the surplus, we do not expect a great deal of surplus coming out of the buyout. Maybe a few hundred grand, and that would be a bonus really to come out. All we know is that we do not have to put more money into it, and at this point, we just want to de-risk it and buy it out.

Speaker #2: Or we know that we don't have to put more money into it and at this point we just want to de-risk it and buy it out.

Speaker #3: Yes. A question there again about Yate and Compassion. I think we've answered that within our previous questions. How much your output goes abroad to Belgium and elsewhere?

Speaker #3: There's simply the current order book has no export work in it. We have got a history of working in Belgium as well. That's other European countries.

Speaker #3: And Scandic countries. So as I say, but at the moment that doesn't feature in the current order book.

Speaker #1: I'll take 17. Are there any capacity constraints at your facilities?

Mark Smith: There is a question there again about Yate and capacity. I think we have answered that within our previous questions. How much of your output goes abroad to Belgium and elsewhere. Simply, the current order book has no export work in it. We have got a history of working in Belgium as well as other European countries and Scandinavian countries. As I said, at the moment, that does not feature in the current order book.

Speaker #4: We have always operated a model. So. Subsidised by partner subcontractors. That allows us to flex workloads when contracts move forwards and backwards. So we do supplement our own capacities with that of partner subcontractors.

Speaker #4: That is the case now and will remain so moving forward.

Trevor Taylor: I will take 17. Are there any capacity constraints at your facilities? We have always operated a model subsidized by partner subcontractors that allows us to flex workloads when contracts move forwards and backwards. We do supplement our own capacities with that of partner subcontractors. That is the case now and will remain so moving forward. If modular reactors ever get built, how would you enter the market? Much the same as we enter energy from waste in any other nuclear market. We are one of the major steel suppliers, and so obviously we have an interest and are watching keenly on the progress of SMRs.

Speaker #3: If modular reactors ever get built, how would you enter the market? Much the same as we enter energy from waste in any other nuclear market.

Speaker #3: We wanted the major steel suppliers and so obviously we have an interest and are watching keenly on the progress of SMRs.

Speaker #1: Okay. And final question. I'll take that. Are the margins achieved in 23, 24 envisaged to return in the coming years? Or are these anomalies given the drop in 25?

Speaker #1: Well, I think it's no secret that the last few years with conflicts government changes and price inflation we've turned the market has been subdued and challenging.

Speaker #1: That is absolutely the case. We have taken measures to improve the cost base of our business through consolidating on-site. Our capital investment program seeks to improve the efficiencies that our facilities to improve the level of margin we are able to return.

Mark Smith: Okay. Final question. I will take that. Are the margins achieved in 2023, 2024 envisaged to return in the coming years or are these anomalies given the drop in 2025?

Trevor Taylor: Well, I think it is no secret that the last few years with conflicts, government changes, and price inflation, we have termed the market as being subdued and challenging. That is absolutely the case. We have taken measures to improve the cost base of our business through consolidating on-site. Our capital investment program seeks to improve the efficiencies at our facilities to improve the level of margin we are able to return. Do we see very short-term the market returning to the levels a number of years ago? No. It is improving. The prices we are able to achieve at the very large end and the most complex of work, where competition is relatively reduced, is where we target and need to be. We are putting all efforts in behind the scenes to make up as much of a difference in the challenging market as we can.

Speaker #1: Do we see very short-term the market returning to the levels a number of years ago? No. It is improving. The prices we are able to achieve at the very large end and the most complex of work where competition is relatively reduced is where we target and need to be.

Speaker #1: And we're putting all efforts in behind the scenes to make of as much of the difference in the challenging market as we can.

Speaker #3: I think that concludes all the questions. And I think we've answered everyone.

Speaker #5: That's great. Thank you for addressing all those investors, and perhaps just before we redirect investors to provide you with their feedback, which has particularly important to the company, if I could just ask you for a few closing comments.

Speaker #4: I just simply put, I'd like to thank the investors for their support, the attendees of this webinar. For their support and the interest of sharing and attending today.

Mark Smith: I think that concludes all the questions, and I think we have answered every one.

Do we see very short-term Market returning, uh, to the levels a number of years ago? No, uh, it is improving. Um, the prices as we are able to achieve at the very large end, and the most complex of work where competition is relatively reduced is where we Target and need to be, um, and we're putting all efforts in behind the scenes to make up for, as much of the difference in the challenging Market as we can.

Speaker #4: And I'd encourage you to keep an eye on our progress and growth and perhaps we all see you again at the end of year announcements next year.

I think that concludes all the questions, and I believe we've answered everyone.

Operator: That is great. Thank you for addressing all those questions that you can from investors. Perhaps just before we redirect investors to provide you with their feedback, which is particularly important to the company, if I could just ask you for a few closing comments.

That's great. Um thank you for um addressing all those questions.

Speaker #5: That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

Mark Smith: I just simply thought I would like to thank the investors for their support, the attendees of this webinar for their support and the interest they have shown in attending today. I would encourage you to keep an eye on our progress and growth, and perhaps we will see you again at the end of year announcements next year.

Thank you. You come from investors, and perhaps just before we redirect investors to provide you with their feedback, which is particularly important for the company, if I could just ask you for a few closing comments.

Speaker #5: This may take a few moments to complete and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation and good afternoon to you all.

I just simply put, I'd like to thank the um, investors for their support, the attendees of this webinar, um, for their support and the interest of showing in attending today. Um, and I'd encourage you to, um, keep an eye on our programs and growth. And perhaps, we will see you again at the

Operator: That is great. Thank you for-

Uh, at the end of the year, announcements next year.

Mark Smith: Thank you.

Operator: updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected to provide your feedback in order that our management team can better understand your views and expectations. This should only take a few moments to complete, and I am sure will be greatly valued by the company.

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Half Year 2026 Billington Holdings PLC Earnings Call

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