Bilby plummets as profits stumble on MoD contract cancellation

For the six month period ended 30 September the gas heating, electrical and building services provider’s profit before tax came in at £1.4m, down 42% on the same period last year, while revenue dropped by 6% to £36.4m.

A statement from the AIM traded company said the weaker performance was "principally" due to the firm’s decision to halt its building services work for the Ministry of Defence in order to "focus on more profitable contracts", though performance was also hurt by a delay in gas installation programmes.

Bilby is comprised of electrical and property services contractor Purdy Contracts, gas heating and building maintenance specialists P & R Installation, refurbishment specialists DCB (Kent), electrical installation and maintenance outfit Spokemead and newly acquired Dunham.

The company said it had acquired several new long-term contracts, though earnings from these would not be seen until the next financial year.

Cash and cash equivalents at 30 September stood at £0.2m, down from £0.4m at the same point last year.

David Ellingham, chief executive of Bilby, said: "This has been an important period for the group. I am pleased that we continued our operational momentum from last year into the first half of this year, expanding our blue-chip customer base and offering additional services to Bilby customers."

Despite setbacks in the first half of the year, the company continues to anticipate that revenues and EBITDA will still exceed those achieved in the preceding year, when it achieved EBITDA of £6.3m on revenue of £78.8m.

"Since the period end we are pleased to have pushed forward with our buy and build strategy and have acquired Dunham. The acquisition will see the group broaden its customer base and strengthen its presence in its core markets of London and the South East," said Ellingham.

Dunham is an electrical services provider and was acquired on 29 November for a maximum cash consideration of £1.4m and 250,000 new Bilby shares.

Bilby’s shares were down 21.99% at 70.99p at 1058 GMT.