Annual profits strengthen for Hill & Smith

AN aborted attempt to strengthen its position in the galvanising sector does not appear to have dented Shirley-based engineering group, Hill & Smith’s annual performance.

The group abandoned the proposed £10.5m acquisition of a Shropshire galvanising firm in July following a disagreement with markets watchdog, the Competition and Markets Authority.

The group had announced in April that its subsidiary, Joseph Ash, intended to acquire Telford-based W Corbett in order to improve its offering in the galvanising sector.

However, the CMA ruled that the deal would have produced a virtual monopoly and would have had a detrimental effect on the supply chain.

In its full year results today, Hill & Smith announced a 3% increase in full year revenue to £467.5m, with pre-tax profit up 15% at £53m.

Derek Muir, Chief Executive, said: “2015 has been another excellent year of progress for Hill & Smith and, despite uncertain economic conditions, we delivered profit growth ahead of our earlier expectations.
 
“Our strategy of international diversity and the strength of our businesses within their respective markets continues to underpin our performance. Our USA and UK operations – which combined represent more than 90% of our underlying operating profit – grew strongly on the back of increasing infrastructure investment.
 
“Overall, although some markets remain challenging, 2016 is again expected to be a year of good progress.”