Strong trading in core UK and US markets boost engineering group

Shirley-based engineering group Hill & Smith said this morning it continues to see strong trading in its core UK and US markets, boosting revenue and operating profit.

Hill & Smith, which specialises in the infrastructure products and galvanizing services sectors, issued a trading update covering the period 1 July to 31 October.

Group revenue for the period increased by 8% to £243.6m (2018: £224.7m).  After adjusting for currency translations and acquisitions, the organic increase was 2%.

Underlying group operating profit for the period was ahead of the same period last year.

However, as set out at the half year point, the group continues to face challenges with its Scandinavian business.

During the period the group completed the acquisition of Parking Facilities for a cash consideration of £12.4m, on a debt and cash free basis.

The company said: “Based in Tamworth, the business specialises in the design, manufacture and supply of a market-leading range of parking and access control products that complement our existing Hostile Vehicle Mitigation and related security product offering.  Trading to date has been encouraging.”

The group’s preliminary results for the year ending 31 December 2019 are scheduled to be announced on 4 March 2020.