Acquisition

RNS Number : 1341E

Hill & Smith Hldgs PLC

14 July 2016

 

14 July 2016

Hill & Smith Holdings PLC

Acquisition of Technocover Limited

Hill & Smith Holdings PLC ('Hill & Smith' or 'the Group'), the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, today announces that it has completed the acquisition of Technocover Limited ("Technocover") for a total cash consideration of £10.0m, on a debt and cash free basis (the "Acquisition").  The consideration will be funded from the Group's existing bank facilities.

Based in the UK, Technocover was a subsidiary of Ensor Holdings PLC and specialises in the development, manufacture, installation and maintenance of high security access products for the utilities markets. In the year to 31 March 2016, Technocover recorded turnover of £14.7m, operating profit of £1.5m (before Ensor Holdings PLC group charges), and had net operating assets, on a debt and cash free basis of £3.7m. The Acquisition is expected to be earnings enhancing to the Group in the first full financial year following the Acquisition.

Derek Muir, Group Chief Executive, commented: "Technocover has an excellent reputation for quality and service and will benefit from being part of the Group's UK Utilities division."

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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 2016, 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

Derek Muir, Group Chief Executive                                               Tel:  [phone]

Mark Pegler, Group Finance Director

MHP Communications

John Olsen/Andrew Leach/Ollie Hoare                                       Tel:  [phone]

Notes to Editors

Hill & Smith Holdings PLC is an international group with leading positions in the design, manufacture and supply of infrastructure products and galvanizing services to global markets. It serves its customers from facilities principally in the UK, France, USA, Thailand, Sweden, Norway, India and Australia.

The Group's operations are organised into three main business segments:

Infrastructure Products - Utilities, supplying products and services such as pipe supports for the power and liquid natural gas markets, energy grid components, "GRP" railway platforms and flood prevention barriers, plastic drainage pipes, industrial flooring, handrails, access covers and security fencing.

Infrastructure Products - Roads, supplying products and services such as permanent and temporary road safety barriers, street lighting columns, bridge parapets, gantries, temporary car parks, variable road messaging solutions and traffic data collection systems.

Galvanizing Services which provides zinc and other coatings for a wide range of products including fencing, lighting columns, structural steel work, bridges, agricultural and other products for the infrastructure and construction markets.

Headquartered in the UK and quoted on the London Stock Exchange (LSE: HILS.L), Hill & Smith Holdings PLC employs some 4,000 staff across 55 sites, principally in 8 countries.

 

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