£11m acquisition is no barrier to growth
SHIRLEY-BASED engineering group Hill & Smith has paid £11m for an East Midlands barrier firm.
Nottingham-based Hardstaff Barriers supplies and installs concrete barriers that are used for motorway repairs and the protection of vulnerable buildings and sites.
It said the purchase of Hardstaff will “complement our existing range of vehicle restraint systems”, while it was also attracted by a quick-deploy, high security perimeter system it has developed.
Hardstaff Barriers generated £3.8m in revenues in the year to March 2016, and the group expects the acquisition to be earnings enhancing in the first full year of ownership. The deal is being funded from the group’s existing bank facilities.
Separately, Hill & Smith said it has had an “encouraging” start to the year, with trading ahead of expectations.
It has seen an organic increase in revenue of 2% in the four months to the end of April, while exchange rate movements have increased revenue by 3% versus average exchange rates in the first half of 2015.
The group, which generated pre-tax profits of £53m on sales of £467.5m in 2015, said underlying operating profit and operating margin are ahead of the same period last year.
Speaking ahead of the group’s AGM later today, chief executive Derek Muir said: “The group has delivered a strong start to the year despite mixed end market conditions. Although some markets are expected to remain challenging, 2016 is again expected to be a year of good progress.”
