23 May 2024
Hill & Smith PLC
Positive start to the year - slightly
ahead of expectations
Hill & Smith PLC ("Hill &
Smith" or "the Group"), the international provider of sustainable
infrastructure products and services, provides a trading update for
the four month period ("the period") to 30 April 2024, ahead of its
Annual General Meeting to be held later today.
Trading Update
·
Trading in the period has been positive, reflecting
continuing strong market demand for infrastructure solutions in the
US which more than offset a more challenging market backdrop in the
UK. Revenue was up 5% on a constant currency basis, with
further operating margin expansion against a strong prior period
comparator.
·
Engineered Solutions has delivered good organic growth
against a record 2023. Demand has been buoyant across our US
operating companies, and the division delivered an operating margin
slightly ahead of the same period last year.
·
Galvanizing Services has seen good organic growth, reflecting
a strong increase in US production volumes, partly offset by
anticipated lower volumes in the UK.
· As
expected, results in Roads & Security were lower than
2023, mainly attributable
to softer customer demand for US off grid solar products against a
very strong prior period comparator.
· Our
M&A pipeline remains encouraging. The integration of our
recent US acquisitions (United Fiberglass, Capital Steel and FM
Stainless) is progressing well and all businesses are performing on
or ahead of expectations.
·
Cash generation continues to be good, in line with our
financial framework. The Group's balance sheet remains robust
with significant headroom to support both organic and inorganic
growth opportunities.
Outlook
·
Based on good momentum across the Group, we expect full year
2024 operating profit to be slightly ahead of the top end of
analyst expectations*.
· We
remain positive on the medium to longer term outlook, supported by
strong market growth drivers for sustainable
infrastructure.
Financial Calendar
·
Hill & Smith's interim results for the six months ending
30 June 2024 are scheduled to be announced on 8 August
2024.
*
The current company compiled analyst consensus expectation for FY24
is for underlying operating profit of £130.8m with a range of
£127.5m-£134.7m
For further information, please
contact:
Hill &
Smith PLC
Alan Giddins, Executive
Chair
Tel: +44 (0)121 704 7434
Hannah Nichols, Chief Financial
Officer
MHP
Reg Hoare/Rachel Farrington/Catherine
Chapman
Tel: +44 (0)7801 894577
Email: hillandsmith@mhpgroup.com
Notes to
Editors
Hill & Smith PLC is a leading provider of sustainable
infrastructure products and services. The Group employs c.4,400
people worldwide with the majority employed by its autonomous,
agile, customer focussed operating businesses based in the US, UK,
Australia and India. The Group head office is in the UK and
Hill & Smith PLC is quoted on the London Stock Exchange (LSE:
HILS.L).
The Group's operating businesses are organised into three main
business divisions:
Galvanizing Services: increasing the sustainability and
maintenance free life of steel products including structural steel
work, lighting, bridges and other products for industrial and
infrastructure markets.
Engineered Solutions: supplying engineered steel and composite
solutions for a wide range of infrastructure markets including
power generation and distribution, marine, rail and housing.
The division also supplies engineered pipe supports for the water,
power and liquid natural gas markets and seismic protection
solutions.
Roads & Security: supplying products and services to
support road and highway infrastructure including temporary and
permanent road safety barriers, intelligent traffic solutions,
street lighting columns and bridge parapets. In addition, the
division includes two businesses which are market leaders in the
provision of off-grid solar lighting and power solutions. The
security portfolio includes hostile vehicle mitigation solutions,
high security fencing and automated gate
solutions.
