23 May 2024

Hill & Smith PLC

Positive start to the year - slightly ahead of expectations

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 ("the period") to 30 April 2024, ahead of its Annual General Meeting to be held later today.

 Trading Update

·    Trading in the period has been positive, reflecting continuing strong market demand for infrastructure solutions in the US which more than offset a more challenging market backdrop in the UK.  Revenue was up 5% on a constant currency basis, with further operating margin expansion against a strong prior period comparator.

·    Engineered Solutions has delivered good organic growth against a record 2023. Demand has been buoyant across our US operating companies, and the division delivered an operating margin slightly ahead of the same period last year.

·    Galvanizing Services has seen good organic growth, reflecting a strong increase in US production volumes, partly offset by anticipated lower volumes in the UK.

·    As expected, results in Roads & Security were lower than 2023, mainly attributable to softer customer demand for US off grid solar products against a very strong prior period comparator. 

·    Our M&A pipeline remains encouraging.  The integration of our recent US acquisitions (United Fiberglass, Capital Steel and FM Stainless) is progressing well and all businesses are performing on or ahead of expectations.

·    Cash generation continues to be good, in line with our financial framework.  The Group's balance sheet remains robust with significant headroom to support both organic and inorganic growth opportunities.

Outlook

·    Based on good momentum across the Group, we expect full year 2024 operating profit to be slightly ahead of the top end of analyst expectations*.

·    We remain positive on the medium to longer term outlook, supported by strong market growth drivers for sustainable infrastructure. 

Financial Calendar

·    Hill & Smith's interim results for the six months ending 30 June 2024 are scheduled to be announced on 8 August 2024. 

* The current company compiled analyst consensus expectation for FY24 is for underlying operating profit of £130.8m with a range of £127.5m-£134.7m

For further information, please contact:

Hill & Smith PLC

Alan Giddins, Executive Chair                                                             Tel:  +44 (0)121 704 7434

Hannah Nichols, Chief Financial Officer

MHP

Reg Hoare/Rachel Farrington/Catherine Chapman                   Tel:  +44 (0)7801 894577

                                                                                                                        Email: hillandsmith@mhpgroup.com

Notes to Editors

Hill & Smith PLC is a leading provider of sustainable infrastructure products and services. The Group employs c.4,400 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.