TIDMHILS
RNS Number : 7895E
Hill & Smith Hldgs PLC
11 May 2017
11 May 2017
Hill & Smith Holdings PLC
Trading Update
Trading in line with expectations
Hill & Smith Holdings PLC ('Hill & Smith' or 'the
Group'), the international group with leading positions in the
supply of infrastructure products and galvanizing services to
global markets, today issues a trading update covering the period
from 1 January 2017 to 30 April 2017 (the 'period') ahead of its
Annual General Meeting to be held later today.
Current Trading
The Board is pleased to report that trading in the period is in
line with the expectations set out at the time of reporting its
2016 preliminary results in March.
Revenue for the period was GBP191.3m (2016: GBP165.4m, restated
to include non-US Pipe Supports*), a 7% organic increase after
adjusting for currency translation and acquisitions/disposals. The
positive translational impact of the strengthening of the US Dollar
and the Euro against Sterling increased revenue by 6% versus
average exchange rates in the first half of 2016. Underlying
operating profit and operating margin are ahead of the same period
last year.
Market Summary
Infrastructure - Roads
In the UK, implementation of the Government's Road Investment
Strategy continues to develop in line with our expectations. Demand
for our temporary safety barriers, variable message signs and
bridge parapets remains solid and ahead of prior year.
On 27 April 2017, we completed the disposal of CA Traffic
Limited, a traffic data collection business, to TagMaster AB for a
total cash consideration of GBP3m. Non-core, and unable to deliver
the returns that we target from our businesses, in the year to 31
December 2016 CA Traffic Limited reported revenue of GBP3.9m and an
operating loss of GBP0.2m.
Internationally, we have continued to make good progress in the
USA and Australia and results are ahead of prior year. Elsewhere,
trading in Sweden and France is in line with our expectations.
Infrastructure - Utilities
As expected, UK infrastructure investment continues to be robust
and demand across our portfolio of products is good.
In the US, the transmission substation business continues to
perform well. Our composite materials business is operating at
similar levels to prior year. On 27 March 2017, we completed the
acquisition of the trade and assets of Kenway Corporation
("Kenway"), a specialist in technologically advanced composite
design, manufacturing and field service work across a broad range
of industries including marine, power, pulp and paper,
transportation and renewable energy. Cash consideration of $6.6m
was paid at acquisition with a further $0.7m due in 2018. Kenway
has been integrated into our Creative Pultrusions business and
furthers our strategy of enhancing our product offering to end
users within infrastructure markets.
Our US pipe supports business benefitted from the recent
consolidation of distribution centres and the lower cost base
resulted in improved profitability and margins. In India, our
investment in an expanded facility is nearing completion. Demand
from international customers has resulted in an encouraging
performance, ahead of our expectations.
Galvanizing
Overall, although reported volumes were 4% behind the same
period in 2016, revenue and profitability improved. As expected,
and against strong comparatives, volumes in the USA were below
prior year, principally due to a large LNG project which ran
through the first half and concluded in the third quarter of 2016.
Day to day infrastructure demand remains robust and profitability
remains strong. In France, volumes were similar to the prior year
but margins improved on a lower cost base. Volumes in the UK were
ahead of prior year and profitability again improved.
Outlook
On the outlook Derek Muir, Group Chief Executive, commented:
"The Group has delivered a solid start to the year despite mixed
end market conditions. Overall, conditions in many of our
infrastructure markets remain favourable and we continue to expect
to report good progress in 2017 in line with our expectations."
Financial calendar
The proposed 2016 final dividend of 17.9 pence per share,
announced on 8 March 2017, will, subject to shareholder approval,
be paid on 3 July 2017 to those shareholders on the register at the
close of business on 26 May 2017. The ex-dividend date is 25 May
2017.
The Group's interim results for the six months ending 30 June
2017 are scheduled to be announced on 10 August 2017.
*In the Group's results to 30 April 2016 the post-announcement
trading results of the non-US Pipe Supports operations (revenue of
GBP2.3m) were treated as non-underlying items given their quantum
relative to the overall result for that period.
- 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
Derek Muir, Group Chief Executive Tel: +44 (0)121 704 7430
Mark Pegler, Group Finance Director
MHP Communications
John Olsen/Andrew Leach/Ollie Hoare Tel: +44 (0)20 3128 8100
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" railway platforms
and flood prevention barriers, plastic drainage pipes, industrial
flooring, handrails, access covers security fencing, residential
doors and steel lintels.
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 4,130
staff, principally in 7 countries.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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