Bilby pulls 2021 guidance, cuts executive pay

Gas heating, electrical and building services provider Bilby pulled guidance for 2021 and cut senior management salaries as some customers deferred contracts amid the coronavirus pandemic.

Bilby said on Friday that it had furloughed some employees and cut salaries of senior management by 40%.

The company, which generates more than 95% of revenues from local authority contracts, said it was experiencing delays in accessing some residential and communal properties to undertake work due to the Covid-19 lockdown.

"Furthermore, while the UK remains subject to travel and social distancing restrictions, some local authority customers are choosing to defer certain elements of work that are deemed of a lower priority," it said in a statement.

"Whilst the short-term outlook remains uncertain, the Group is confident of completing these deferred works when conditions return to normal and our longer-term prospects remain very positive."

Bilby added that 2020 full-year earnings and revenues would be in line with guidance. However, the level of uncertainty around the pandemic made it "difficult" to provide guidance and Bilby said it would not do so until "a clearer outlook emerges".

For the year ended 31 March, revenues and underlying earnings were expected to come in at £59m and £4.5m, respectively, in line with guidance. Net debt at the end of the year was £7.4m.

(Writing by Frank Prenesti; Editing by Michele Maatouk)