TIDMHILS
RNS Number : 1363I
Hill & Smith Hldgs PLC
22 November 2018
22 November 2018
Hill & Smith Holdings PLC
Trading Update
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 1
July 2018 to 31 October 2018 ("the period").
The Board expects full year 2018 results to be in line with
current market expectations.
Revenue for the period increased by 11.5% to GBP224.7m (2017:
GBP201.5m). After adjusting for currency translation and
acquisitions, the organic increase was 5%. The negative
translational impact of the strengthening of Sterling against the
US Dollar in particular decreased revenue by 2% versus average
exchange rates in 2017. Underlying operating profit for the period
was ahead of the same period last year.
In October, the Group was encouraged to hear the announcement of
further significant investment in the UK roads network. Confirming
funding for its Road Investment Strategy 2 ("RIS2") programme, the
UK Government increased investment across 2020 to 2025 to
GBP25.3billion, an increase of some 66% compared with the RIS1
programme spanning 2015 to 2020. The delivery of Smart Motorways,
in which the Group has an active and significant presence,
continues to lie at the core of the Government's investment in the
strategic road network.
During the period the Group completed two acquisitions for a
total consideration of $18.6m. On 17 August, the Group acquired the
business assets of Engineered Endeavours Inc. from Chapter 11
proceedings in Ohio, USA for a cash consideration of $6.4m. The
business designs and manufactures utility poles for the power
distribution and wireless cellular markets and gives us 52,000 sq.
ft. of additional manufacturing capacity in our existing US utility
business.
The business and assets of Composite Advantage Inc. ("CA") were
acquired on 5 October for an initial cash consideration of $10.6m.
A further $1.6m is due on the expiry of certain warranties and
indemnities. Based in Ohio, USA, CA provides fibre reinforced
polymer products for infrastructure markets including waterfront,
rail, bridge decks and oil & gas. CA is being integrated into
the Group's existing composite products business and will expand
the range of technical solutions into wider infrastructure markets.
Neither acquisition is expected to materially contribute to the
2018 results.
Financial position
Net debt at 31 October 2018 was GBP152.6m compared to GBP141.2m
at 30 June 2018, principally reflecting further acquisition
spend.
Financial calendar
The 2018 interim dividend of 10.0 pence per share, announced on
8 August 2018, will be paid on 3 January 2019 to shareholders on
the Hill & Smith register on 30 November 2018. The ex-dividend
date is 29 November 2018.
The Group's preliminary results for the year ending 31 December
2018 are scheduled to be announced on 6 March 2019.
- 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
Andrew Jaques / Ollie Hoare Tel: +44 (0)20 3128 8771
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, traffic management 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 4,400
staff, principally in 7 countries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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