TIDMHILS
RNS Number : 3474O
Hill & Smith Hldgs PLC
17 May 2018
17 May 2018
Hill & Smith Holdings PLC
Trading Update
Full Year Expectations Unchanged
Hill & Smith Holdings PLC ('Hill & Smith' or 'the
Group'), the international group with leading positions in the
design, manufacture and supply of infrastructure products and
galvanizing services to global markets, today issues a trading
update covering the period from 1 January 2018 to 30 April 2018
(the 'period') ahead of its Annual General Meeting to be held later
today.
Current Trading
Revenue of GBP185.1m for the period is marginally behind prior
year (2017: GBP191.3m), but similar after adjusting for
acquisitions/disposals and currency translation, most notably in
respect of the impact of the strengthening of sterling against the
US dollar. Underlying operating profit is lower than the same
period in the prior year. The Group has continued to see positive
trading in its international businesses which has been offset by
the performance across the UK businesses being impacted by both
project delays and adverse weather conditions.
Since mid-March, the Group has experienced improved order intake
across its UK road and utilities businesses while continuing to
record strong performances in both the US and French operations.
The Board reconfirms that its expectations for the full year remain
unchanged.
Acquisitions
During the period the Group completed four acquisitions for
total consideration of GBP32.6m, including potential deferred
consideration of up to GBP1.4m. D Gibson Road & Quarry Services
Limited was acquired on 1 January. Supplying road signs and
ancillary products into UK contractors, the business has been
absorbed into our existing lighting column operation. Signalvakter
Syd was acquired on 28 March. A Swedish traffic management
business, Signalvakter has been integrated into our existing
Scandinavian operations and will serve to extend our product
offering. On 27 April, the Group acquired the business and certain
assets of The Grating Company Limited and Pro Composites Limited.
The businesses specialise in the design, supply and installation of
glass reinforced plastic composite products into the construction
and rail markets in the south-east of the UK and have been
integrated into our existing UK composites operation.
Further, on 9 May, the Group announced the acquisition of the
business and assets of Work Area Protection Corp., and its
associated affiliates ("WAPCO") for a total cash consideration of
$42.0m on a debt free, cash free basis. Based in the USA, WAPCO
specialises in the development, manufacture and distribution of a
wide range of road workzone safety products, including crash
attenuators, temporary variable message signs, smart work zone
systems and traffic control products such as drums, channelizers
and cones. The combination of WAPCO's business with our existing US
and international roads businesses will increase the scale and
range of road safety products into key geographies where the
infrastructure investment outlook is strong.
The pipeline of acquisitions remains encouraging and the Group
is committed to deploying its resources to enhance its geographic
and product footprint in markets where the infrastructure
investment outlook is strong. Effective 1 June 2018, Mark Pegler,
as part of his role as Group Finance Director, has been asked by
the Board to focus on the development and execution of such
acquisition opportunities. Operational and management
responsibility of the UK Utilities group will therefore revert back
to Derek Muir.
Outlook
On the outlook, Derek Muir, Group Chief Executive, commented:
"Despite project delays and the weather-impacted start to the year
in the UK, conditions across our principal markets continue to be
favourable. Overall, despite political and macroeconomic
uncertainties, the Board reconfirms that its expectations for the
full year remain unchanged, albeit with a greater second half
bias."
Financial calendar
The proposed 2017 final dividend of 20.6 pence per share,
announced on 7 March 2018, will, subject to shareholder approval,
be paid on 2 July 2018 to those shareholders on the register at the
close of business on 25 May 2018. The ex-dividend date is 24 May
2018.
The Group's interim results for the six months ending 30 June
2018 are scheduled to be announced on 8 August 2018.
- Ends -
Cautionary Statement
This announcement contains forward looking statements which are
made in good faith based on the information available at the time
of its approval. It is believed that the expectations reflected in
these statements are reasonable but they may be affected by a
number of risks and uncertainties that are inherent in any forward
looking statement which could cause actual results to differ
materially from those currently anticipated. Nothing in this
document should be regarded as a profits forecast.
For further information, please contact:
Hill & Smith Holdings PLC Tel: +44 (0)121 704 7430
Derek Muir, Group Chief Executive
Mark Pegler, Group Finance Director
MHP Communications Tel: +44 (0)20 3128 8100
Oliver Hughes / Vera Prokhorenko
Notes to Editors
Hill & Smith Holdings PLC is an international group with
leading positions in the design, manufacture and supply of
infrastructure products and galvanizing services to global markets.
It serves its customers from facilities principally in the UK,
France, USA, Sweden, Norway, India and Australia.
The Group's operations are organised into three main business
segments:
Infrastructure Products - Roads, supplying products and services
such as permanent and temporary road safety barriers, hostile
vehicle mitigation products, street lighting columns, bridge
parapets, temporary car parks and variable road messaging
solutions.
Infrastructure Products - Utilities, supplying products and
services such as pipe supports for the power and liquid natural gas
markets, energy grid components, composite "GRP" products, plastic
drainage pipes, industrial flooring, handrails, access covers and
security fencing.
Galvanizing Services which provides zinc and other coatings for
a wide range of products including fencing, lighting columns,
structural steel work, bridges, agricultural and other products for
the infrastructure and construction markets.
Headquartered in the UK and quoted on the London Stock Exchange
(LSE: HILS.L), Hill & Smith Holdings PLC employs some 4,300
staff, principally in seven countries.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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