Engineering group hails encouraging acquisition pipeline

Shirley-based engineering group Hill & Smith has said the pipeline of potential acquisitions is “encouraging” while reporting a positive performance with trading ahead of 2018.

The group, which specialises in the infrastructure products and galvanizing services sectors, acquired ATG Access for £22.5m in February and said it is committed to enhancing its product offering and geographical footprint in markets where the infrastructure investment outlook is strong.

In a trading update from 1 January 2019 to 30 April 2019, the company said its expectations for the full year remain unchanged, with the overall the performance of its UK businesses positive and trading ahead of the prior year.

“Whilst the wider investment environment continues to be cautious, broad-based infrastructure spend continues to underpin demand in our Utilities and Galvanizing operations. After a slower start to the year in the UK Roads market, the implementation of the Government’s long-term Road Investment Strategy is resulting in increasing utilisation of our temporary safety barrier rental fleet,” the company said.

It added that the US infrastructure investment continues to be robust and demand across its portfolio of products is good.

“In particular, our US Utilities businesses delivered revenues and profitability ahead of the prior year and carry strong order backlogs.”

However, the group said it has seen a slower start to the year within some of its smaller international operations, in particular the Scandinavian and Australian roads businesses.

Hill& Smith  also announced that Jock Lennox, who has served 10 years on the board, the last two as chairman, will step down from his role once a replacement is found.

The board expects to have a new chairman in place ahead of the 2020 AGM.

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