REG - Hill & Smith PLC - Trading update

Hill & SmithAnnouncement

14/11/2023 07:15

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RNS Number : 3084T  Hill & Smith PLC  14 November 2023

14 November 2023

Hill & Smith PLC

Trading update

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 to 31 October 2023 ("the period").

 

Trading Performance and Outlook

The Group has traded well during the period, reflecting continued strong
momentum in our US businesses and a resilient performance in our UK
businesses. Revenue for the period was up 15% on a constant currency basis (up
7% on an organic constant currency basis) and we have also seen positive
operating margin progression over the same period last year. The Group has
continued to be cash generative with healthy cash conversion and reduced
leverage.

 

Given the good trading performance, we now expect FY23 operating profit to be
slightly ahead of the top end of current analyst consensus(†) and to start
FY24 with positive momentum.

 

Trading by Division

The Engineered Solutions division has continued to perform strongly, supported
by buoyant demand across all our US businesses, particularly for composite
solutions and structural steel components for the electricity transmission
market. Enduro Composites which was acquired in February 2023 continues to
trade well. Our engineered pipe supports business in India also delivered good
growth in the period with high demand for products to support international
liquified natural gas projects.

 

The Galvanizing division has delivered a robust performance in the period. Our
US galvanizing business benefited from organic volume growth and a good
trading performance at Korns Galvanizing, acquired in March 2023. In the UK,
anticipated lower production volumes were offset through pricing and cost
control actions.

 

The Roads & Security division has delivered good constant currency revenue
growth in the period, with strong trading in our US off-grid solar lighting
solutions business, albeit operating profit was slightly lower than the same
period last year reflecting the ongoing transformation of our US Roads
business.

 

Investor Seminar and Financial Calendar

We will be holding an investor seminar focused on our composites business in
London on 30 November 2023. For further details, please contact
hillandsmith@mhpgroup.com.

 

The Group's preliminary results for the year ending 31 December 2023 are
scheduled to be announced on 14 March 2024.

 

(†) The current company compiled analyst consensus expectation for FY23 is for underlying operating profit of £117.2m with a range of £116.0m-£118.6m.
 

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

 
hillandsmith@mhpgroup.com (mailto:hillandsmith@mhpgroup.com)

Notes to Editors

Hill & Smith PLC is a leading provider of sustainable infrastructure
products and services. The Group employs c.4,250 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.

 

 

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