Trading Update

RNS Number : 1180N

Hill & Smith Hldgs PLC

14 May 2015

 



14 May 2015

Hill & Smith Holdings PLC

Trading Update

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 a trading update covering 1 January 2015 to 30 April 2015 (the 'period').

Current Trading

The Board is pleased to report that trading is in line with its expectations that it set out at the time of reporting its 2014 preliminary results in March.

Revenue for the period was £153.2m (2014 : £146.4m), a 6% organic increase after adjusting for currency translation and acquisitions/disposals. The positive translational impact of the strengthening of the US Dollar against Sterling has been broadly offset by the weakening of the Euro. Operating margin is ahead of the same period last year.

Markets - summary

Infrastructure - Roads

Demand for our road products in the UK continues to be strong with the additional investment forecast by Highways England proceeding as planned.

Infrastructure - Utilities

Our US composite material and transmission substation operations have experienced a solid start to the year. As expected, market conditions continue to be unfavourable for the Pipe Supports business, both in the US and the rest of the world. Poor US weather conditions also adversely impacted the first quarter. Recent enquiry and order intake activity has been more encouraging which should result in a stronger second half of the year. The remaining UK utilities businesses continue to perform strongly and ahead of the prior year.

On 30 April 2015 the Group completed the acquisition of Novia Associates, Inc. ('Novia'), a vibration isolation and seismic control manufacturer located in New Hampshire, USA. In 2014 Novia had revenue of $3.5m and adjusted EBITDA of $0.3m. Consideration was $3m. Novia will extend the product offering of our Pipe Supports business in the US.

Galvanizing

Underlying volumes across our geographies are broadly as expected when compared to the prior year, with the US positive, the UK similar and a weaker French market. Overall, tonnage was up 2% on the prior year.

Financial position

Net debt at 30 April 2015 was £99.3m compared to £96.0m at 31 December 2014, principally reflecting normal seasonality of working capital.

Outlook

On the outlook Derek Muir, Group Chief Executive, commented:

"Overall our performance in the first four months was in line with our expectations with good organic revenue growth. Although some markets remain challenging, we continue to expect 2015 to be another year of good growth."

Financial calendar

The proposed 2014 final dividend of 11.6 pence per share, announced on 10 March 2015, will, subject to shareholder approval, be paid on 3 July 2015 to shareholders on the Hill & Smith register on 29 May 2015. The ex-dividend date is 28 May 2015.

The Group's interim results for the six months ending 30 June 2015 are scheduled to be announced on 6 August 2015.

- Ends -

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.

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                                                                          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 - 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.

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.

Galvanizing Serviceswhich 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 3,800 staff across 55 sites, principally in 8 countries.

 

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