Strong UK and US markets deliver solid results for engineering group
Shirley-based engineering group Hill & Smith has delivered a “much improved” performance in the first half of 2019, driven by strong demand in its UK and US markets.
The group, which specialises in the infrastructure products and galvanizing services sectors, reported revenue of £339.5m in the six months to the end of June, up from £295.4m while underlying profit before tax was up nearly £4m to £36.9m.
Hill & Smith, which acquired ATG Access for £22.5m in February, attributed the good first half performance was driven by a strong performance in UK and US, partly offset by weaknesses in smaller international markets.
It reported underlying operating profit growth of 13% to £40.2m, 5% organically, and increased its interim dividend by 6% to 10.6p.
Chief executive Derek Muir said: “Hill & Smith delivered a much improved performance in the period over a weaker first half last year. We benefit from our strong positions in niche infrastructure markets, predominantly in the UK and US where we continue to see sustained infrastructure spend, and our proactive approach to the management of our portfolio of businesses.
“Overall, we are confident that our market leading positions, business model and financial strength position us well for further growth. Whilst short term political and macroeconomic uncertainties remain, particularly in the UK, our expectations for the full year are unchanged.”
This morning the group also announced Alan Giddins as chairman with effect from October 1 , succeeding Jock Lennox, who will retire from the board.
Giddins joined the Hill & Smith board in October 2017 and recently stepped down as a managing partner and head of private equity at 3i Group.
Prior to joining 3i in 2005, Alan spent 13 years working in investment banking advising a broad range of public companies. He qualified as a chartered accountant at KPMG and has a degree in economics.
Muir said: “I am delighted that Alan has agreed to take on the chairman role at Hill & Smith. The Board has benefitted hugely from his involvement with the group over the last 18 months, and I am very much looking forward to working with Alan in his new role. On behalf of the board I would also like to thank Jock for the significant contribution he has made to Hill & Smith, first as a non-executive director and then as chairman.”
Giddins added: “I am extremely pleased to be taking on the role of chairman at Hill & Smith. I believe that there are significant opportunities for the group within its core infrastructure markets, and I am looking forward to working with the board and wider executive management team to continue to deliver on the Group’s clear growth strategy.”
