Hill & Smith trading ahead of expectations

CONSTRUCTION products supplier Hill & Smith has said its performance during the first five months of the year has beaten expectations, with the momentum of the stronger trading seen in the second half of 2011 continuing into 2012.  

The Shirley-based group said in an AGM statement it was encouraged by the healthy order intake in its utilities businesses, and the UK roads activity along with volumes in its galvanizing operation – all of which were ahead of our expectations for the period.

However, it has still warned it is too early to say what might happen during the rest of the year and has erred on the side of caution.

Good organic revenue growth, supplemented by first time contributions from last year’s acquisitions of The Paterson Group and ATA Sweden, have resulted in operating profits being ahead of the previous year, it added.

“We remain clearly focused on increasing our margins and continuing to drive revenue growth to build on this strong start to the year,” said the statement.
 
“Our expectation for the first half of 2012 was for a stronger performance than for the same period in 2011.  Whilst the performance to date is above our earlier expectations, it is too early to anticipate the outcome for the full year and we retain an element of caution in our outlook.”