Hill & Smith to close Telford operation

SOLIHULL-based plc Hill & Smith Holdings has announced the closure of its Telford operation, which trades as Access Design and Engineering.

No figure has, as yet, been put on job losses.

The construction products supplier and safety barriers manufacturer runs Access Design and Engineering through its Redman Fisher Engineering subsidiary.

All production and manufacturing activity from the Telford operation will switch to a sister site in Middlesbrough which, given the distance involved, would seem to suggest relocating staff is going to be difficult.

In a statement to the London Stock Exchange this morning, Hill & Smith said: “As previously reported, Access Design, which manufactures and installs secondary steelwork, industrial flooring and handrails to AMP5 projects, was downsized earlier in the year to reduce its exposure to the challenging and highly competitive contracting arena. 

“The challenging market conditions facing this particular area of our business have not abated during 2013 and the relocation of the business to the successful Middlesbrough site will significantly reduce overhead and provide a foundation for its future profitable growth within the UK market.
 
“The group expects to book a one off non-underlying charge of circa £4.9m in its 2013 financial statements, of which £1.2m is non-cash related.  The impact of the restructuring is expected to be marginally earnings enhancing in 2014.”
 
Derek Muir, group chief executive, said: “These actions, whilst not taken lightly, further demonstrate Hill & Smith’s commitment to its stated strategy of active portfolio management in furtherance of improving return on sales, return on invested capital and shareholder value.”

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