You are here

Prices & Quotes - UK Markets - Hill & Smith Holdings (HILS)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 1,366.00p
Change Today:
2.00p
Market Cap:
1,085.68m
Sector:
Industrial Engineering

Hill & Smith profits fall as board talks up resilience

By Josh White

Date: Wednesday 06 Mar 2019

LONDON (ShareCast) - (Sharecast News) - Infrastructure products and galvanizing services provider Hill & Smith Holdings reported a 9% improvement in revenue in its final results on Wednesday, to 637.9m, or a 10% rise at constant currency.
The FTSE 250 company said its underlying operating profit was down 1% year-on-year at 80.1m, while its underlying operating margin was 130 basis points lower at 12.6%.

Its underlying profit before tax was down 3% on the prior year at 76.3m, while underlying earnings per share were 3% higher at 77.8p.

On a reported basis, operating profit fell 12% to 65.2m, with profit before tax falling 15% to 59.8m, and basic earnings per share sliding 13% to 59.9p.

Net debt widened to 132.9m during the year, from 99m at the end of the prior year.

Hill & Smith said it returned to growth in the second half of the year ended 31 December, after a "disappointing" first half.

Performance in the US and other international businesses was described as "robust", which the board said was driven by significant investment in new and replacement infrastructure.

UK performance improved in the second half, despite a cautious investment environment.

The company completed seven acquisitions in 2018 and early 2019, which the directors said extended its infrastructure product range and addressable markets.

Hill & Smith said its operating cash flow was "strong", with the net debt figure of 132.9m being 1.3x underlying EBITDA, despite acquisition spend of 45.8m and capital investment of 32.8m in the year.

The board proposed a 6% increase in the final dividend to 21.8p, which would lead to a 6% rise in the full-year dividend to 31.8p - the 16th successive year of increases.

"We returned to growth in the second half, a testament to our resilient business model, our leading positions in markets with clear long-term growth dynamics, and our ability to create our own growth opportunities by broadening and enhancing the range of products that we can offer," said Hill & Smith chief executive officer Derek Muir.

"We do this both through internal product development and by targeting complementary acquisitions, and 2018 has been a busy and successful year in this regard."

Muir said the company's UK and US businesses, which represented the bulk of its activities, would continue to benefit from the "significant" ongoing investment in replacement and new infrastructure in those countries.

"In particular, the UK government's confirmed long-term commitment to increased investment in the roads network is very encouraging for our UK roads business, and our US businesses will benefit from the US administration's 'Buy American' policy for federally funded infrastructure projects.

"Despite all the current well-documented political and macroeconomic uncertainty, we are confident that our leading market positions, business model and financial strength put us in a strong position to take advantage of market opportunities as they present themselves," Derek Muir explained.

"Whilst we continue to experience some short term uncertainty in the UK, we have reasonable expectations that 2019 will be a year of progress for the group."

Hill & Smith also announced on Wednesday that group finance director Mark Pegler would step down from the board and leave the group at the end of April.

It said the move reflected the outcome of the board's long term succession planning, alongside Pegler's personal plans for the future, with a search for his successor said to be underway.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

HILS Market Data

Currency UK Pounds
Price 1,366.00p
Change Today 2.00p
52 Week High 1,510.00p
52 Week Low 901.00p
Volume 78,385
Shares Issued 79.48m
Market Cap 1,085.68m

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. empty market
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Price Trend
market
  1. full market star
  2. full market star
  3. full market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector
Income
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
Growth
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
P/E
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
PEG
market
  1. empty market
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. empty sector
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Dividend Yield
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
EPS Growth
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HILS Dividends

  Latest Previous
  Interim Interim
Ex-Div 03-Dec-20 28-Nov-19
Paid 08-Jan-21 03-Jan-20
Amount 9.20p 10.60p

Trades for 03-Dec-2020

Time Volume / Share Price
16:36 600 @ 1,366.00p
16:35 30,396 @ 1,366.00p
16:29 72 @ 1,372.00p
16:29 21 @ 1,372.00p
16:29 27 @ 1,372.00p

HILS Key Personnel

Chair Alan Giddins
CFO Hannah Nichols