Wedoany.com Report-Oct. 15, Billington Holdings has announced plans to restructure its steel operations, with the potential closure of its Yate facility in Bristol and the consolidation of operations from two sites in Barnsley into a single location. The move is part of the company’s strategy to improve operational efficiency and align production capacity with current market conditions.

The decision follows a challenging financial performance in the first half of 2025, during which Billington reported a 28% decline in revenue to £42 million for the six months ending 30 June 2025. The company also recorded a two-thirds drop in pre-tax profit, which fell to £1.7 million, primarily due to delays in the completion of three major contracts. The slowdown prompted the company to issue a profit warning last month, signaling the need for structural adjustments across its business operations.

In a statement released through the London Stock Exchange, Billington said: “If completed, this restructuring would see the Group’s Yate facility in Bristol closed and the consolidation of structural steel operations at Billington’s Wombwell and Shafton sites in Barnsley.” The company emphasized that the plan aims to streamline its production network, reduce fixed costs, and increase responsiveness to market fluctuations.

Billington further noted: “The Board continually reviews the Group’s operations to ensure that they are structured in the most optimally efficient manner and are reflective of the current and projected future market environments in which Billington operates.” The statement underlined the company’s commitment to maintaining competitiveness through enhanced productivity and cost efficiency.

The proposed consolidation in Barnsley is expected to allow Billington to better align its operational capacity with market demand, while also lowering overheads and achieving significant cost and operational efficiencies. The restructuring initiative is positioned as a proactive measure to strengthen the company’s foundation for long-term stability in an increasingly challenging construction and steel market environment.

Billington confirmed that it has begun a consultation process with employees potentially affected by the closure of the Yate plant. “The Company has commenced a consultation with the potentially affected employees at Yate, following which a formal decision will be made on the future of the Yate facility. Further announcements will be made in due course as appropriate,” the company said.

Through this restructuring, Billington aims to optimize its resource allocation and consolidate expertise within its core operational centers in Barnsley, enabling the company to deliver projects more efficiently while maintaining high-quality standards. The outcome of the consultation will determine the final course of action, but the group has stated that any decisions will be made carefully to balance operational needs and employee interests.

Overall, the restructuring reflects Billington’s strategic response to short-term market pressures while reinforcing its focus on long-term sustainability and operational resilience in the UK’s structural steel industry.