Billington knocking on 400p



BILN shares changing hands at 400p+ this morning, following news on Monday that Ruffer has increased its stake to over 5%, presumably they are the main buyers of the shares being offloaded by the Schmil family trust (Gutenga) who I think still hold around 40%.

And BILN sp still pretty cheap at 400p I think.

An anticipated dividend of 15p this year, covered more than 2x by earnings, would be a yield of 3.75%. Market cap only £51M but the pre-close trading update in Dec said 2019 turnover will be more than £78M and profit more than £5.2M. No real finance debt to speak of and increasingly healthy cash in hand up to maybe £10M.

What would you do with that surplus?

How is the market for structural steel design, make and build? Certainly no worse than it has been the last three years while BILN has grown steadily. Actually make that five years. Announcements of new business would be a poweful market mover.

So depending on outlook BILN might be good value up to 500p, whether for its safety buffer or the potential for enhanced shareholder returns.

Ruffer is better known for its hedging and value conservation. It must be impressed by the solid performance and financial strength. Others now alerted to the value in BILN?