Manufacturing group makes ‘good progress’ despite road delays

Manufacturing group Hill & Smith continues to perform well despite more challenging conditions within its UK markets.

The international group has three division – supplying products for roads and utilities infrastructure as well as galvanising products.

It has reported organic sales growth of 4% for the four months to October, with currency changes adding a further 2%, taking revenues for the period to £201.5m.

Underlying operating profit and operating margin are ahead of the same period last year, it added.

Hill & Smith’s chief executive Derek Muir said: “Overall, conditions in many of our infrastructure end markets remain favourable and we continue to expect the group to report good progress for 2017.”

The company’s share price rose by 60% in 2016, and has risen by a further 10% this year, taking the company’s value above £1bn for the first time. The Shirley-headquartered group employs around 4,000 people.

Its roads business in the UK has seen “a small number” of road schemes delayed into 2018 resulting in lower utilisation of our temporary safety barriers, but is expecting a ramp up in activity as spring approaches.

The performance of the UK utilities companies continues to be mixed with a lower year on year trading performance principally driven by reduced volumes from its solar frame business.

However its international markets have reported some good results, with its Australian roads business performing ahead of expectations, as did its pipe supports business in India.

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