TIDMHILS
RNS Number : 6548Z
Hill & Smith Hldgs PLC
25 May 2021
25 May 2021
Hill & Smith Holdings PLC
TRADING UPDATE
Trading ahead of prior year; Full year expectations
unchanged
Hill & Smith Holdings PLC ("Hill & Smith" or "the
Group"), the international group creating sustainable
infrastructure and safe transport solutions, provides a trading
update for the four month period to 30 April 2021 ("the
period").
Trading Update
The Group has made a good start to the year with reported
revenue for the period 10 percent ahead of last year and ahead of
2019 levels. We are also pleased to report a strong recovery in
operating profit in comparison to the same period last year which
was impacted by COVID-19 related disruption from the middle of
March 2020.
The Roads & Security division performed as expected in the
period. Our roads subdivision delivered results ahead of 2020,
reflecting high levels of demand in the US, a solid performance in
the UK and a robust recovery in our other international roads
businesses. While our security businesses continued to face
challenges due to COVID-19 restrictions on public gatherings and
delayed customer projects, the trading performance was ahead of the
same period last year.
Our Utilities division continued to perform well with
year-on-year growth supported by a good recovery in demand in our
engineered pipe support and UK utility businesses and continued
strong levels of demand in our US composite business.
In our Galvanizing division, trading for the period was robust
with total volumes galvanized significantly higher than 2020, which
was disrupted by COVID-19.
In line with our refreshed portfolio management strategy, in
March 2021, we made the decision to close our small, loss making UK
variable message sign business ("VMS") and expect operations to
fully cease by the end of this year.
Prolectric Services, our off-grid solar energy solutions
business acquired in March 2021, has traded well in the first two
months post acquisition and we remain positive about the long-term
growth potential, driven by the transition from fossil fuels
towards renewable energies.
Outlook
We expect to see a good recovery in trading in 2021 and while
mindful of foreign exchange movements, our expectations for the
full year remain unchanged. While we continue to experience
headwinds relating to US labour shortages and higher global steel
costs, our local teams have taken swift and effective actions which
are mitigating the impacts.
The medium to longer term outlook for the Group remains
positive, supported by strong growth drivers for both sustainable
infrastructure and safe transport.
Financial Position and Liquidity
Hill & Smith continues to be highly cash generative with a
strong balance sheet. Net debt as at 30 April 2021 was GBP160.2m
(December 2020: GBP146.2m). The GBP14m net debt movement during the
period includes cash outflows of GBP7.3m for the FY2020 interim
dividend and GBP11.7m relating to the acquisition of Prolectric
Services.
Financial Calendar
The 2020 final dividend of 17.5 pence per share, if approved at
today's AGM, will be paid on 9 July 2021 to those shareholders on
the register at close of business on 4 June 2021. The ex-dividend
date is 3 June 2021.
The Group's interim results for the six months ending 30 June
2021 are scheduled to be announced on 11 August 2021.
Paul Simmons, Group Chief Executive said:
"The Group has made an encouraging start to the year and we
expect a good recovery in trading through 2021. We are moving ahead
with our plans to create a higher quality business and the
announced closure of VMS and acquisition of Prolectric demonstrate
this. Our end markets are supported by strong macro drivers that
give us confidence in the Group's long-term prospects."
- 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 nor should it be
taken to mean that earnings per share of Hill & Smith in the
year ending 31 December 2021, or in future years, will necessarily
match or exceed the Group's historical earnings per share.
For further information, please contact:
Hill & Smith Holdings PLC
Paul Simmons, Chief Executive Tel: +44 (0)121 704 7434
Hannah Nichols, Chief Financial Officer
EngineMHP Communications
Andrew Jaques/Rachel Farrington/Catherine Chapman Tel: +44 (0)20 3128 8100
Notes to Editors
Hill & Smith Holdings PLC creates sustainable infrastructure
and safe transport through innovation. The Group employs c.4500
people worldwide with the majority employed by its autonomous,
agile, customer focussed operating businesses based in the UK, USA,
France, Sweden, India and Australia. It has a head office in the UK
and it is quoted on the London Stock Exchange (LSE: HILS.L).
The Group's operating businesses are organised into three main
business segments:
Roads & Security: supplying products and services such as
permanent and temporary road safety barriers, renewable energy
lighting and power solutions, Intelligent Traffic Solutions, street
lighting columns, bridge parapets, temporary car parks, variable
road messaging solutions, hostile vehicle mitigation, high security
fencing and access covers.
Utilities: supplying products and services such as engineered
composite solutions with low embedded energy, pipe supports for the
water, power and liquid natural gas markets, seismic protection
solutions, building products including fire doors, industrial
flooring and assemblies for the distribution of electricity.
Galvanizing Services: dramatically increasing the sustainability
and maintenance free life of steel products including structural
steel work, lighting, bridges, agricultural and other products for
the industrial and infrastructure markets.
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END
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