Billington Holdings Plc (LON:BILN) has been highlighted in the latest research note from Cavendish after announcing three new significant contract awards with an expected aggregate value of around £28m. The update points to continued momentum for the structural steel specialist, with the new work largely due for delivery during 2027 and spread across several infrastructure and public sector markets.
The note takes a positive view of the contracts, saying they provide further confidence in forecasts and add to an already healthy forward order book. It also argues that the wins reinforce the group’s position in quality added value and more technically complex projects, supported by high quality, accredited customers.
The three awards span Defence, Energy from Waste and Education, giving the business a broader mix of work across sectors where it already has experience and capability. In Education, Billington has secured a contract worth around £6m for a multi-storey development in north-west London, with delivery scheduled for 2027. In Energy from Waste, where the group has a strong market position, it has won a further order from an existing client for a project in eastern England, also due for delivery in 2027, with a contract value of £12m. In Defence, the company has received an initial instruction for a project in south-east England, worth around £10m subject to further development, again for delivery in 2027.
The research note keeps its forecasts unchanged and continues to see the shares as attractively valued. It points out that Billington is trading on a FY27E price-to-earnings ratio of 8.4 times and an EV/EBITDA multiple of 2.4 times, reflecting the group’s strong cash position. Net cash of around £25.0m is described as representing about 46% of the company’s market value, which the note says provides substantial backing for the shares.
Valuation comparisons also remain supportive. The note says Billington trades on a 7% P/E discount to Severfield, while its own target price of 515p implies further upside from the current share price of 430p. On that basis, the shares are seen as offering decent value, with the note also referring to a modest FY27E P/E of 10 times and a free cash flow yield of 7.5% at target price.
The analyst’s overall tone remains upbeat, with the report saying: “With these chunky orders secured providing further evidence of good momentum across infrastructure sectors, the shares look good value with scope to outperform.”
Billington continues to invest in expanding its capabilities while improving operating efficiency, and the latest contract wins appear to support that strategy. The combination of a healthy order book, exposure to infrastructure-led demand and a strong balance sheet gives the business a solid platform as it moves towards 2027 delivery.
Highlights
- Three new contract awards announced with an expected combined value of around £28m.
- Work spans Defence, Energy from Waste and Education.
- Delivery is largely expected during 2027.
- Net cash of around £25.0m is said to represent about 46% of market value.
- The note maintains a 515p target price and a Buy recommendation.
Overall, the latest research note suggests that Billington Holdings is continuing to build on its strengths in technically complex structural steel projects, while the new contract wins add further support to forecasts and the investment case.
