Billington Holdings (AIM:BILN) warned on Friday that full-year underlying profit before tax will fall materially short of market expectations, guiding to a range of £4.0 million to £5.5 million against a consensus forecast of £8.3 million.
The AIM-listed structural steel and construction safety solutions specialist said the downgrade for the year ending 31 December reflects two contract-specific issues rather than a broader deterioration in trading.
A disappointing industrial sector project in the north of England has proved more costly to complete than anticipated, prompting the Group to expect a material reduction in its margin contribution.
Client-led delays to a significant bridge contract at Tubecon mean its contribution will now fall into 2027 rather than this year.
Billington said a final decision on whether certain other contract profits can still be recognised will be made after the year end, meaning the outturn could land at the higher end of the guided range.
Underlying profit before tax for the 2025 financial year was £4.1 million, against which this year's guided range represents a wide outcome either side of flat.
The Group said performance across the wider business remains positive, pointing to roughly £120 million of new contract awards announced during 2026 across data centres, energy, infrastructure, education and defence, which have contributed to a record order book giving visibility through 2027 and into 2028 for certain projects.
Billington described the structural steelwork and construction markets as challenging and subject to continued pricing pressure, but said it remains well positioned in sectors where demand is strong, with a substantial pipeline of further opportunities and a strong balance sheet supporting its secured workload.
The Board said it is disappointed by the reduction in expected profitability but believes the issues are contract specific, adding that the record order book, market position and pipeline give it confidence in the Group's longer-term prospects.