Interim Management Statement

RNS Number : 3141S

Hill & Smith Hldgs PLC

18 November 2011

 



18 November 2011

Interim Management Statement

Trading in line with expectations

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 issues its Interim Management Statement covering the period from 1 July 2011 to date ("the period"). 

The performance of the Group for the period has been robust and the Board's expectations for the full year remain as announced at the time of the half year results in August.  The international diversity and strength of our businesses, particularly in the USA, continues to underpin our performance.

Notwithstanding the continued investment in working capital to facilitate the stronger second half trading, our net debt as at 31 October 2011 was £110.8m, compared with £113.9m as reported at the half year.

Following the disposal in July 2011 of the last remaining business in the Building and Construction Products division, the Group is now wholly focused on two core higher added value divisions - Infrastructure Products and Galvanizing Services.

Infrastructure Products

Roads

In the UK the first of three managed motorway schemes commenced in Q4 as planned, and our temporary vehicle restraint system, Varioguard, has been deployed on the project.  In the lighting column sector we have benefitted from the strength of our market position and the attrition amongst smaller competitors. Whilst theUK roads market remains challenging against the background of reduced government infrastructure spending, our expansion into other road markets through the recent acquisition of ATA in Scandinavia, and our push for international growth in Australia and the Middle East, are helping to mitigate the UK downturn.

Utilities

Our pipe supports business entered the period with a robust order book and, as anticipated, is delivering a stronger second half performance.  Our Thai facility, whilst not directly impacted by the current flooding in Bangkok, is experiencing flood related issues with its supply chain but these are being managed on a day to day basis.

The power generation market in India remains buoyant and order intake continues to be healthy.  In the USA there has been a focus on renewable energy and, whilst our utility transmission business has a strong order book, the continuation of delays with nuclear and fossil fuelled power generation projects, has affected parts of the Bergen Pipe Supports business.

Creative Pultrusions, our USA based glass reinforced plastics business, has performed well winning and delivering a number of large projects for the security, rail and gas exploration markets.

The UK water industry's AMP5 (Asset Management Programme), now in its second year, has continued the momentum gained in the first half resulting in a solid performance for the supply of interconnecting pipework, storm attenuation tanks and access systems. 

Galvanizing Services

The trends seen in the first half of 2011 have continued as expected, with the USA performing well on the back of renewable energy projects and strong general industrial demand.  Volumes in France were more subdued in Quarter 3 but year to date are marginally ahead of those for last year. Demand for galvanizing in the UK has remained weak, including that from our own infrastructure businesses.

Outlook

Whilst the macro-economic environment continues to be uncertain, the Board's expectations for the full year remain unchanged.  Our strengthened international profile has continued to provide resilience in the short term and will provide value and growth opportunities in the medium and longer term.

Financial Calendar

The 2011 interim dividend of 5.4 pence per share, announced on 9 August 2011, will be paid on 6 January 2012 to shareholders registered on 25 November 2011.  The ex-dividend date is 23 November 2011.

The Group's preliminary results for the year ended 31 December 2011 are scheduled to be announced on 15 March 2012.

David Grove OBE

The Board was greatly saddened by the sudden death of David Grove on 12 November 2011.  Derek Muir, Chief Executive, said:

"As Chief Executive and latterly Chairman, from 1998 until his retirement in 2009, David was the prime driving force behind Hill & Smith Holdings and the architect of the business it is today.  During that period he drove the expansion and profitable growth of our Group, and embedded the entrepreneurial culture that remains at our heart today.  Our thoughts are with his family at this very sad time." 

- Ends -

For further information, please contact:

Derek Muir, Group Chief Executive                                        Tel:  [phone]

Hill & Smith Holdings PLC

John Olsen/Barnaby Fry                                                         Tel:  [phone]

MHP Communications

 

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