REG - Hill & Smith PLC - AGM Statement

Hill & SmithAnnouncement

23/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240523:nRSW5404Pa&default-theme=true

RNS Number : 5404P  Hill & Smith PLC  23 May 2024

23 May 2024

 

Hill & Smith PLC

Positive start to the year - slightly ahead of expectations

 

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 ("the period") to 30 April 2024,
ahead of its Annual General Meeting to be held later today.

 

 Trading Update

·    Trading in the period has been positive, reflecting continuing strong
market demand for infrastructure solutions in the US which more than offset a
more challenging market backdrop in the UK.  Revenue was up 5% on a constant
currency basis, with further operating margin expansion against a strong prior
period comparator.

·    Engineered Solutions has delivered good organic growth against a
record 2023. Demand has been buoyant across our US operating companies, and
the division delivered an operating margin slightly ahead of the same period
last year.

·    Galvanizing Services has seen good organic growth, reflecting a
strong increase in US production volumes, partly offset by anticipated lower
volumes in the UK.

·    As expected, results in Roads & Security were lower than 2023,
mainly attributable to softer customer demand for US off grid solar products
against a very strong prior period comparator.

·    Our M&A pipeline remains encouraging.  The integration of our
recent US acquisitions (United Fiberglass, Capital Steel and FM Stainless) is
progressing well and all businesses are performing on or ahead of
expectations.

·    Cash generation continues to be good, in line with our financial
framework.  The Group's balance sheet remains robust with significant
headroom to support both organic and inorganic growth opportunities.

Outlook

·    Based on good momentum across the Group, we expect full year 2024
operating profit to be slightly 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.

Financial Calendar

·    Hill & Smith's interim results for the six months ending 30 June
2024 are scheduled to be announced on 8 August 2024.

* The current company compiled analyst consensus expectation for FY24 is for
underlying operating profit of £130.8m with a range of £127.5m-£134.7m

 

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

 
Email: 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.4,400 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.

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMEAKSAALNLEFA