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HILS - Hill & Smith Holdings News Story

1548p -34.0  -2.1%

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Sector
Basic Materials
Size
Mid Cap
Market Cap £1.26bn
Enterprise Value £1.42bn
Revenue £699.1m
Position in Universe 394th / 1803

Hill & Smith Hdgs. - Trading Update

Thu 25th November, 2021 6:59am
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RNS Number : 5178T  Hill & Smith Hldgs PLC  25 November 2021

 

25 November 2021

Hill & Smith Holdings PLC

Trading Update

 

Hill & Smith Holdings PLC ("Hill & Smith" or "the Group"), the
international group creating sustainable infrastructure and safe transport
through innovation, provides a trading update for the four month period to 31
October 2021 ("the period").

 

Group Performance and Outlook

Trading during the period has been robust, with revenue of £237.1m, 4% ahead
of last year on an organic constant currency basis.

 

Supply chain headwinds relating to the availability of materials and labour
continue to be appropriately managed. Our operating companies have also
implemented price increases to help offset input cost inflation, with steel
being the most impacted category for the Group.

 

Based on the trading performance to date, the Group remains on track to
deliver full year 2021 underlying operating profit in line with analyst
consensus expectations^.  The Board remains confident in the medium to longer
term outlook for the Group, supported by strong growth drivers for both
sustainable infrastructure and safe transport.

 

Trading by Division

In Roads & Security, demand for the UK temporary barrier fleet was
supported by a range of RIS1 and RIS2 strategic road network schemes including
the commencement of the first RIS2 smart motorway scheme. We have also started
to see an encouraging recovery in our UK security businesses as restrictions
on public gatherings ease. In the US, the outlook for the Roads business
remains positive and during the period we invested in the expansion of our
rental fleet.

 

The Utilities division performed well during the period. In particular, the US
composite business continued to see strong levels of demand for its range of
innovative solutions including fire resistant utility poles, waterfront
protection and mass transit infrastructure.

 

The Galvanizing division delivered a good performance in the UK and France. As
previously reported, US labour shortages continued to limit production
capacity in some US galvanizing plants, with the team taking action to
mitigate the impact by focusing on higher margin work.

 

Financial Position and Liquidity

Net debt as at 31 October 2021 was £154.2m (30 June 2021: £154.6m).  The
Group remains cash generative with the movement in the period including
£13.9m for the payment of the 2020 final dividend.

 

Financial Calendar

The Group's preliminary results for the year ending 31 December 2021 are
scheduled to be announced on 10 March 2022.

 

^ The current company compiled consensus expectation for FY21 is for
underlying operating profit of £85.9m.

 

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 nor should it be taken to mean that
earnings per share of Hill & Smith in the year ending 31 December 2021, or
in future years, will necessarily match or exceed the Group's historical
earnings per share

 

For further information, please contact:

Hill & Smith Holdings PLC

Paul Simmons, Chief
Executive
Tel:  +44 (0)121 704 7434

Hannah Nichols, Chief Financial Officer

EngineMHP Communications

Andrew Jaques/Rachel Farrington/Catherine Chapman               Tel:
+44 (0)20 3128 8100

 

Notes to Editors

Hill & Smith Holdings PLC creates sustainable infrastructure and safe
transport through innovation. The Group employs c.4500 people worldwide with
the majority employed by its autonomous, agile, customer focussed operating
businesses based in the UK, USA, France, Sweden, India and Australia. It has a
head office in the UK and it is quoted on the London Stock Exchange (LSE:
HILS.L).

 

The Group's operating businesses are organised into three divisions:

 

Roads & Security:  supplying products and services to support road and
highway infrastructure including temporary and permanent road safety barriers,
renewable energy lighting and power solutions, Intelligent Traffic Solutions,
street lighting columns and bridge parapets. The security portfolio includes
hostile vehicle mitigation solutions, high security fencing and automated gate
solutions.

 

Utilities: supplying steel and engineered composite solutions with low
embodied energy for a wide range of infrastructure markets including energy
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.

 

Galvanizing Services: dramatically increasing the sustainability and maintenance free life of steel products including structural steel work, lighting, bridges, agricultural and other products for the industrial and infrastructure markets.

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