TIDMHILS
RNS Number : 5178T
Hill & Smith Hldgs PLC
25 November 2021
25 November 2021
Hill & Smith Holdings PLC
Trading Update
Hill & Smith Holdings PLC ("Hill & Smith" or "the
Group"), the international group creating sustainable
infrastructure and safe transport through innovation, provides a
trading update for the four month period to 31 October 2021 ("the
period").
Group Performance and Outlook
Trading during the period has been robust, with revenue of
GBP237.1m, 4% ahead of last year on an organic constant currency
basis.
Supply chain headwinds relating to the availability of materials
and labour continue to be appropriately managed. Our operating
companies have also implemented price increases to help offset
input cost inflation, with steel being the most impacted category
for the Group.
Based on the trading performance to date, the Group remains on
track to deliver full year 2021 underlying operating profit in line
with analyst consensus expectations^. The Board remains confident
in the medium to longer term outlook for the Group, supported by
strong growth drivers for both sustainable infrastructure and safe
transport.
Trading by Division
In Roads & Security, demand for the UK temporary barrier
fleet was supported by a range of RIS1 and RIS2 strategic road
network schemes including the commencement of the first RIS2 smart
motorway scheme. We have also started to see an encouraging
recovery in our UK security businesses as restrictions on public
gatherings ease. In the US, the outlook for the Roads business
remains positive and during the period we invested in the expansion
of our rental fleet.
The Utilities division performed well during the period. In
particular, the US composite business continued to see strong
levels of demand for its range of innovative solutions including
fire resistant utility poles, waterfront protection and mass
transit infrastructure.
The Galvanizing division delivered a good performance in the UK
and France. As previously reported, US labour shortages continued
to limit production capacity in some US galvanizing plants, with
the team taking action to mitigate the impact by focusing on higher
margin work.
Financial Position and Liquidity
Net debt as at 31 October 2021 was GBP154.2m (30 June 2021:
GBP154.6m). The Group remains cash generative with the movement in
the period including GBP13.9m for the payment of the 2020 final
dividend.
Financial Calendar
The Group's preliminary results for the year ending 31 December
2021 are scheduled to be announced on 10 March 2022.
^ The current company compiled consensus expectation for FY21 is
for underlying operating profit of GBP85.9m.
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 2021, or in future years, will necessarily
match or exceed the Group's historical earnings per share
F or further information, please contact:
Hill & Smith Holdings PLC
Paul Simmons, Chief Executive Tel: +44 (0)121 704 7434
Hannah Nichols, Chief Financial Officer
EngineMHP Communications
Andrew Jaques/Rachel Farrington/Catherine Chapman Tel: +44 (0)20 3128 8100
Notes to Editors
Hill & Smith Holdings PLC creates sustainable infrastructure
and safe transport through innovation. The Group employs c.4500
people worldwide with the majority employed by its autonomous,
agile, customer focussed operating businesses based in the UK, USA,
France, Sweden, India and Australia. It has a head office in the UK
and it is quoted on the London Stock Exchange (LSE: HILS.L).
The Group's operating businesses are organised into three
divisions:
Roads & Security: supplying products and services to support
road and highway infrastructure including temporary and permanent
road safety barriers, renewable energy lighting and power
solutions, Intelligent Traffic Solutions, street lighting columns
and bridge parapets. The security portfolio includes hostile
vehicle mitigation solutions, high security fencing and automated
gate solutions.
Utilities: supplying steel and engineered composite solutions
with low embodied energy for a wide range of infrastructure markets
including energy 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.
Galvanizing Services: dramatically increasing the sustainability
and maintenance free life of steel products including structural
steel work, lighting, bridges, agricultural and other products for
the industrial and infrastructure markets.
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