Billington has experienced a 58% fall in profit for the first half of 2010.
The steel contractor's pre-tax profit for the period was 拢1.1m, compared to 拢2.6m for the first half of 2009.
Revenue was down by 28% at 拢21.3m (H1 2009: 拢29.7m).
Billington cash position worsened slightly, from 拢8.6m to 拢6.9m.
However, it has all but wiped out the 拢5.2m pension deficit, which now stands at 拢200,000, thanks in part to disposal of 鈥渘on-core operations鈥�.
Dosco Overseas Engineering and its subsidiary Hollybank Engineering were sold in May for 拢290,000, though they made a loss during the period of 拢300,000.
Worryingly, chief executive Steve Fareham said: 鈥淭he profits shown in this period are supported by the positive results from contracts which were won in 2009 at higher margins than are currently being generated.
鈥淭he company has been successful in winning a reasonable number of new contracts in the retail sector, and this along with other contracts helped restore production activity levels in recent months. However, the ongoing uncertain market conditions continue to impact on margins.鈥�
A subsidiary of Billington is Easi-edge, which provides safety barriers to the UK steel and concrete frame construction industry, and has a 鈥渟mall but ever growing market share鈥�. It has also successfully launched a site hoarding system, 'Hoard-it', which has grown sufficiently to necessitate a move to additional premises in Barnsley.
Looking ahead, Fareham said: 鈥淧rospects for the sectors in which the Group operate remain challenging for the foreseeable future. The number and value of contracts being awarded remains well below that of recent years and as a result new work is only won on very competitive terms.
鈥淲e expect that this will continue to have an adverse effect on our margins and working capital in 2010 and 2011. The overall result for 2010 is likely to be in line with expectations, with the results for the second six months benefiting from a positive contribution from the final completion of contracts won in 2009.鈥�
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