Record second half revenues shape 2014 for Hill & Smith
RECORD second half revenues have built a solid platform for growth for Solihull based building products supplier Hill & Smith.
The company, which also manufactures safety barriers, said it expected the strong start to 2014 to continue and yield increased revenue and profit.
In the company’s annual results statement, chairman Bill Whiteley said: “We expect good constant currency revenue and profit growth with group margins slightly ahead of 2013 levels, although our reported results are likely to be impacted by recent adverse foreign currency movements.
“The overall prospects for our infrastructure products and galvanizing businesses are encouraging as we see signs of increased activity and future capital spend. This, along with the board’s ambition to grow and develop through investing in the markets we know, selective acquisitions and new products and technologies, gives the board confidence in achieving sustainable growth and shareholder value.”
It said despite the extreme weather in the north east of the US and in the UK, the momentum of stronger trading, seen in the second half of 2013, had seen galvanizing volumes to date ahead of 2013 in all of its markets, although it said it remained cautious of France where the economy remains challenging.
The group’s order book in the Utilities division remains healthy and it said it expected margins to improve through recovery in both its Bergen Pipe Supports and Access Industrial Flooring operations following remedial actions last year.
It is also looking to capitalise on the UK government’s new road network strategy, including the Highways Agency’s £10.7bn plan to upgrade 27 strategic roads.
“Accordingly, we have confidence in the short and medium term growth prospects for our UK Roads businesses,” added Whiteley.
The annual results show revenue for the group increased 0.9% to £444.5m (2012: £440.7m), with underlying pre-tax profit up 2% at £41.2m (2012: £40.4m). Underlying earnings per share rose 4.1% to 40.4p (2012: 38.8p) and the board has recommended a dividend of 16p (2012: 15p), a rise of 6.7%. Net debt was down 0.5% at £87.2m.
The keys points for the year were that after a subdued first half, the business picked up considerably with record revenues during the second half. Profits from its Roads business were significantly improved, with a positive outlook in the UK and in newer markets overseas.
Derek Muir, Chief Executive, said: “We achieved a record earnings performance in the second half after a subdued start to the year, and made important strategic investments and changes across the group. Encouragingly, the momentum seen in the second half of 2013 has continued into the first two months of 2014.”
