25 May 2023
Hill & Smith PLC
Strong start to the year ahead of expectations
Hill & Smith PLC ("the Group"), the international group creating sustainable infrastructure and safe transport through innovation, provides a trading update for four month period ("the period") to 30 April 2023 ahead of its Annual General Meeting to be held later today.
The Group has delivered a record trading performance in the period, with 18% constant currency revenue growth (10% on an organic constant currency basis) and strong profit growth against a relatively soft 2022 comparator.
The Engineered Solutions division delivered a standout performance in the period with record revenue and operating profit. The strong performance reflects buoyant demand in our US businesses, particularly for composite solutions. The integration of Enduro Composites, a US-based designer, manufacturer and supplier of engineered composite solutions acquired in February 2023, is progressing well and the business has traded ahead of expectations.
The Galvanizing division also delivered record results in the period. Our US galvanizing business continues to see strong market demand and delivered good revenue and profit growth, underpinned by an increase in production volumes. In the UK, anticipated lower production volumes have been largely offset through pricing and efficiency actions.
The Roads & Security division delivered good growth in the period, including strong trading at National Signal, a US-based off-grid solar lighting solutions business acquired in October 2022, which continues to perform ahead of expectations. In April 2023, we successfully completed the disposal of the final part of our loss making Swedish roads business.
Based on the strong trading in the period and good momentum across the Group, we expect full year 2023 operating profit to be modestly 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.
The Group's interim results for the six months ending 30 June 2023 are scheduled to be announced on 9 August 2023.
* The current company compiled analyst consensus expectation for FY23 is for underlying operating profit of £107.0m with a range of £105.2m-£110.2m
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 profit forecast nor should it be taken to mean that earnings per share of Hill & Smith in the year ending 31 December 2023, or in future years, will necessarily match or exceed the Group's historical earnings per share.
For further information, please contact:
Hill & Smith PLC
Alan Giddins, Executive Chair Tel: +44 (0)121 704 7434
Hannah Nichols, Chief Financial Officer
Reg Hoare/Rachel Farrington/Catherine Chapman Tel: +44 (0)20 3128 8613
Notes to Editors
Hill & Smith PLC creates sustainable infrastructure and safe transport through innovation. The Group employs c.4,000 people worldwide with the majority employed by its autonomous, agile, customer focussed operating businesses based in the UK, USA, Australia and India. The Group 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 with low embodied energy 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.