20 November 2024
Hill & Smith PLC
Four month trading
update
Full year expectations
unchanged
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 to 31 October 2024 ("the period").
Trading Performance and
Outlook
Trading in the period has been
positive, reflecting good momentum in our Engineered Solutions and
Galvanizing Services divisions, particularly in the US.
Revenue for the period was up 7.5% on a constant currency basis and
2% on an organic basis, an improvement on the first half growth
rates. Group operating margin was ahead of the same period last
year and cash conversion continues to be strong.
We expect FY24 operating profit to
be in line with current analyst consensus†*.
Trading by Division
The Engineered Solutions division
delivered a robust performance, supported by strong demand across a
range of US infrastructure markets. During the period, the
Group acquired Whitlow, a manufacturer of
structural steel substation components for the US electrical
infrastructure market, and Trident Industries, a US based designer
and supplier of composite utility poles. The integration of
both businesses is progressing well, and initial trading is
encouraging.
Galvanizing Services delivered good
revenue and profit growth in the period, reflecting 13% volume
growth in our higher margin US business and a resilient performance
in the UK with volumes 7% higher than the same period last
year.
Revenue and profit in the Roads
& Security division were lower than the same period last year,
partly reflecting the challenging UK market backdrop. In addition,
the subdued performance in our US off-grid solar lighting business
that we observed in H1 has continued, with softer demand levels
from its largest customer.
Rutger Helbing, Chief Executive, commented:
"I have spent my first two months at
Hill & Smith understanding the business, reviewing the
strategy, visiting our operating companies and meeting our talented
teams. This has reinforced my view that the Group is exposed to
attractive infrastructure end markets with structural growth
drivers and therefore has excellent prospects for further value
creation for our shareholders. I will share my initial
observations on the Group when we publish our preliminary results
in March 2025.
The positive trading performance
during the period reflects the strong momentum in demand for our
products and services, particularly in the US, and the benefits of
our focused M&A strategy"
Financial Calendar
The Group's preliminary results for
the year ending 31 December 2024 are scheduled to be announced on
12 March 2025.
†The current company compiled
analyst consensus expectation for FY24 is for underlying operating
profit of £139.1m, with a range of
£135.9m-£145.1m.
*The current company forecast
for FY24 assumes an average exchange rate of 1.28 US Dollar to 1 UK
Pound, noting the previous guidance issued in August 2024 assumed
an exchange rate of 1.27 US Dollar to 1 UK Pound. A one cent
movement in the average US Dollar rate currently results in an
adjustment of approximately £4.0m to the Group's annual revenues
and £1.0m to annual underlying operating profit.
For further information, please
contact:
Hill & Smith PLC
Rutger Helbing, Chief Executive
Officer
Tel: +44 (0)121 704 7434
Hannah Nichols, Chief Financial
Officer
MHP
Reg Hoare/Rachel Farrington/Hugo
Harris
Tel: +44 (0)7801 894577
hillandsmith@mhpgroup.com
Notes to
Editors
Hill & Smith PLC is a leading provider of sustainable
infrastructure products and services. The Group employs c.4,250
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.