Hill & Smith enjoys profit and revenue rise
Infrastructure products supplier Hill & Smith has seen both annual revenue and profit rise on the back of strong trading in its core UK and US markets.
The Solihull-headquartered firm saw pre-tax profit rise to £61.8 million from £59.8 million, and revenue increase nine per cent to £694.7 million for the year ended December 31 2019.
The company mainly manufactures products for the construction industry.
It includes its namesake motorway barriers factory at Bilston; Halesowen-based galvanising firm Joseph Ash, which also has sites in Telford, Walsall and Bilston, and Oldbury-based street lighting firm Signature.
The group’s UK and US operations generated 83 per cent of revenue and 96 per cent of its underlying operating profit.
However, the group said its smaller international operations experienced “more mixed outcomes” in the year, with its Scandinavian roads business, which represents about five per cent of group revenue, experiencing difficult market conditions and operational challenges resulting in the business reporting operating losses in the year.
In a statement to the London Stock Exchange, the business said its overall performance was in line with the board's expectations.
Derek Muir, chief executive, said: “We are pleased with the group’s overall performance in 2019. We have seen strong progress in our UK and US markets, which represent the majority of our activities, where the group continues to benefit from its leading positions in niche infrastructure markets, its clear business model and financial strength.
“Together these create the platform from which the group is capable of delivering long term and sustainable growth.
“Our outlook for 2020 remains unchanged and, whilst we may see some short-term delays in the commencement of UK roads projects we expect another year of good progress for the group.”
