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Hill & Smith Holdings PLC on Wednesday reported a strong interim performance, as its profit nearly doubled thanks to ‘standout’ results from its Galvanizing Services business.
For the six months to June 30, the Solihull, England-based infrastructure company reported a 12% rise in revenue to £349.9 million from £313.6 million a year earlier. Pretax profit nearly doubled to £31.4 million from £16.1 million.
Operating profit increased by 79% to £34.8 million from £19.4 million a year earlier, as administrative expenses narrowed by 3.0% to £80.0 million from £82.5 million.
The Galvanizing Services unit delivered a ‘standout performance,’ the company said, with revenue being 17% higher to £84.5 million from £70.2 million.
‘The results reflect successful pricing actions taken to offset input cost inflation and a deliberate focus on higher margin customers,’ Hill & Smith explained.
Engineered Solutions revenue was up 27% to £136.5 million from £107.7 million.
Keeping a cap on group revenue, however, was its Roads & Safety unit, which saw revenue slip 5% to £128.9 million from £135.7 million.
Executive Chair Alan Giddins said: ‘The group has had a good first half. Looking forward, our aim is to accelerate progress and growth. While we are mindful of current macroeconomic uncertainty, the group is exposed to strong structural growth markets and, with a proven track record of resilience, is well positioned to deliver against our strategic goals.’
It declared an interim dividend of 13.0 pence per share, up 8.3% from 12.0p a year prior.
The company said it has maintained its full year expectations. In the medium to longer term, Hill & Smith said the outlook is supported by strong market growth drivers for both sustainable infrastructure and safe transport.
Shares were down 1.7% at 1,248.00 pence each on Wednesday mid-morning in London.
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