Expectations high at Hill & Smith

INFRASTRUCTURE and galvanising products manufacturer Hill & Smith says it on track to meet the board’s expectations for the full year.

In a trading update, the Shirley, Solihull, firm  said it is benefitting from the industrial and geographical spread of its markets and business units.

In the UK, Highways England continues to implement the Government’s road investment strategy and demand for Hill & Smith’s  products has been healthy.

“Recently we have experienced some minor delays in the start date of three Smart Motorway projects and now expect the projects to commence in early 2016. During the period, interest in our Variable Message Signs (VMS) has been strong with orders of £12.1m secured for supply in 2016,” it said.
 
On 11 November 2015 the group completed the acquisition of the trade and assets of Tegrel, a specialist metal fabricator based in Newcastle. It is the main supplier to VMS for the sign enclosures and fabrications.

“The acquisition vertically integrates the supply chain and allows VMS to increase its capacity to support Highways England with its signage requirements in the roll out of its Smart Motorway programme over the next five years,” Hill & Smith said.
 
Internationally, the firm’s Scandinavian business continues to perform well while in France, action taken on the cost base is assisting the trading performance.
 
In the US, where the overall economic outlook remains favourable, both the firm’s substation and composite businesses have performed well.
 
“Our UK businesses have benefitted from strong demand for security and building products, offsetting reduced volumes in the industrial flooring market due to lower oil and gas customer demand,” it added.
 
In galvanizing services overall volumes were similar to the same period in 2014. In the US, activity levels were particularly strong, driven by solar and wider infrastructure markets.

“Our new plant in Memphis is performing well and establishing itself as a quality galvanizer serving the local fabrication market.”
 
Derek Muir, group chief executive, said: “Overall, conditions in many of our end markets are generally encouraging and we continue to expect the group to report good progress for 2015. Accordingly, we remain on track to meet the board’s expectations for the full year.”