Hill & Smith Hldgs PLC Acquisition of Prolectric Services Ltd (8340Q)
02 March 2021 - 6:00PM
UK Regulatory
TIDMHILS
RNS Number : 8340Q
Hill & Smith Hldgs PLC
02 March 2021
2 March 2021
Hill & Smith Holdings PLC
Acquisition of Prolectric Services Ltd
Hill & Smith Holdings PLC ("Hill & Smith" or "the
Group"), the international group providing sustainable
infrastructure and safe transport solutions, today announces that
it has completed the acquisition of Prolectric Services Ltd
("Prolectric"), from shareholders including the management team who
will be staying with the business. The initial cash consideration
is GBP12.5m, on a debt and cash free basis. A further cash
consideration of up to GBP5.7m is payable conditional on
Prolectric's achievement of financial performance targets in the 12
months post-acquisition. The total consideration will be funded
from the Group's existing banking facilities.
Prolectric, located in Clevedon, North Somerset, is a UK market
leader in off-grid solar energy solutions. It offers a range of
remotely monitored lighting and security products, either for
rental or sale, which are field proven in rail, road and other
niche infrastructure applications. The technology also enables
customers to measure the reduction in CO(2) emissions versus diesel
powered alternatives. The business benefits from the ongoing
transition from fossil fuels to a zero-carbon economy and the need
to reduce noise pollution, driven by government legislation and
customer demands.
The expected underlying operating profit of Prolectric for the
year to March 2021 is cGBP1.4m with a margin above the current
group average. The net operating assets on a debt and cash free
basis are GBP3.7m. The acquisition is expected to be earnings
enhancing to the Group in 2021.
Paul Simmons, Chief Executive, said:
"Prolectric is a UK market leader in temporary solar lighting
and operates in a market with excellent long term growth potential,
driven by the transition from fossil fuels towards renewable
energies.
Hill & Smith has significant experience of the markets which
Prolectric's customers operate in, and this, alongside Prolectric's
innovative product range will further enhance the business's
growth. We are delighted to be adding a deep understanding of solar
technology to the Group's capabilities and see this as a clear fit.
We are excited to welcome Prolectric and its employees to the
Group."
The Group's preliminary results for the year ending 31 December
2020 will be announced on 10 March 2021.
ENDS
For further information, please contact:
Hill & Smith Holdings PLC
Paul Simmons, Group Chief Executive Tel: +44 (0)121
Hannah Nichols, Group Chief Financial Officer 704 7430
MHP Communications
Andrew Jaques / James Bavister / Catherine Chapman Tel: +44 (0)20 3128
8170
Notes to Editors
Hill & Smith Holdings PLC creates sustainable infrastructure
and safe transport through innovation. The Group employs c4,400
people worldwide with the majority working within 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 is quoted on the London Stock Exchange (LSE: HILS.L).
The Group's operating businesses are organised into three main
business segments:
Roads & Security: supplying products and services such as
permanent and temporary road safety barriers, street lighting
columns, Intelligent Traffic Solutions, variable road messaging
solutions, bridge parapets, renewable energy lighting & power
solutions, temporary car parks, high security fencing, hostile
vehicle mitigation and access covers.
Utilities: supplying products and services such as engineered
composite solutions with low embedded energy, assemblies for the
distribution of electricity, building products including fire
doors, pipe supports for the water, power and liquid natural gas
markets, industrial flooring 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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