5 March 2019 – trading update
The gas heating, electrical and building services provider has released a disappointing trading update for year ending 31 March 2019. The second half has seen a continuation of certain challenging customer circumstances originally announced in December. P&R, one of Bilby’s five operating companies, gave notice of termination of its contract to supply building maintenance services for Ministry of Defence properties and is still subject to dispute and resolution proceedings. Delays to a major gas installation contract have also continued and the company is in active discussion with regards to a resolution. However, P&R will now report a significant loss for the full year and EBITDA for Bilby as a whole should be between £2.0m and £3.0m before non-underlying restructuring costs and losses associated with the termination of the contract for Ministry of Defence properties. All other divisions continue to trade well and in line with management expectations for the current year. The share price has fallen significantly on the back of the news and we downgrade to HOLD.