REG - Hill & Smith PLC - AGM Trading Update

Hill & SmithAnnouncement

22/05/2025 07:00

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RNS Number : 6719J  Hill & Smith PLC  22 May 2025

22 May 2025

 

Hill & Smith PLC

 

Positive start to the year, full year expectations unchanged

 

Hill & Smith PLC ("Hill & Smith" or "the Group"), the leading provider
of solutions that enhance the resilience of vital infrastructure and the built
environment, provides a trading update for the four-month period ("the
period") to 30 April 2025, ahead of its Annual General Meeting to be held
later today.

 

Trading and outlook

Trading in the period has been positive and in line with our expectations,
reflecting continuing robust market demand for infrastructure solutions in the
US and a resilient performance in the UK despite a subdued market backdrop.
Revenue was 3% higher on a constant currency basis, with further operating
margin expansion against a strong prior period comparator.

US Engineered Solutions delivered good growth in the period, driven by strong
demand across our larger platform businesses. The division delivered an
operating margin similar to the same period last year.

UK & India Engineered Solutions has seen an anticipated continuation of
subdued demand in the UK, but with improved profitability driven by project
activity and a focus on cost management and efficiency.

Galvanizing Services has seen a robust performance, reflecting a modest
increase in US volumes, despite poor weather early in the year, and good
volume growth in the UK.

Cash generation continues to be good and the Group's balance sheet remains
strong, with significant headroom to support both organic and inorganic growth
opportunities.  Our M&A pipeline remains active.

Based on the positive start to the year, we continue to expect full year 2025
operating profit to be in line with current analyst consensus*.

Impact of tariffs

We continue to monitor the effects of tariff announcements on our businesses
and supply chains however we are not currently seeing any significant impact.

With around 95% of our materials being sourced in the US and less than 1% of
revenue from US exports, we have low direct exposure to the tariffs announced
so far. Where raw material cost increases are coming through, our businesses
have been able to mitigate this by raising prices. We have not seen any
indication of reduced activity levels or delays to projects, supporting our
confidence that the structural drivers for US infrastructure growth remain
intact.

Financial calendar

Hill & Smith's interim results for the six months ending 30 June 2025 are
scheduled to be announced on 13 August 2025.

* The current company compiled analyst consensus expectation for FY25 is for
underlying operating profit of £150.3m with a range of £145.4m-£154.0m.

 

For further information, please contact:

Hill & Smith PLC

Rutger Helbing, Chief Executive Officer
 
Tel:  +44 (0)121 704 7434

Mark Else, Interim Chief Financial Officer

 

MHP

Reg Hoare/Rachel Farrington/Hugo
Harris
Tel:  +44 (0)7801 894577

 
Email: hillandsmith@mhpgroup.com

Notes to Editors

Hill & Smith PLC is a leading provider of solutions that enhance the
resilience of vital infrastructure and the built environment. The Group
employs c.4,500 people, with the majority employed by its autonomous, agile,
customer focussed operating companies based in the UK, USA 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 companies are organised into three divisions:

 

-       US Engineered Solutions

-       UK & India Engineered Solutions

-       Galvanizing Services

 

Our Engineered Solutions businesses manufacture and supply steel and composite
solutions for a wide range of infrastructure end markets including power
transmission and distribution, water and wastewater management, data centre
construction, transport infrastructure, and other industrial construction.

Our Galvanizing Services operations, based in the UK and US, increase the
sustainability and maintenance free life of steel products including
structural steelwork, lighting, bridges, and other products for infrastructure
and construction end markets.

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