Hill & Smith Holdings PLC (LON:HILS), the international group with leading positions in the manufacture and supply of infrastructure products and galvanizing services to global markets, announced this morning its audited results for the year ended 31st December 2019.
Key points:
- Overall performance in line with the Board’s expectations
- Strong US performance driven by investment in ageing infrastructure and new construction projects
- Infrastructure spend underpinning demand in UK markets, despite cautious investment environment
- Actions taken to restructure smaller Scandinavian roads business, which faced challenges during the year
- Continuation of portfolio management strategy:
- Three UK acquisitions completed at a cost of £43.9m, primarily in the growing security market
- Capital investment of £23.8m in higher return UK temporary road safety barrier and US Galvanizing businesses
- Strong operating cash flow: net debt £215.3m (inc. £40.0m IFRS 16), 1.6x EBITDA; borrowing facilities expanded and extended
- Proposed full year dividend up 6% to 33.6p, 17th successive year of growth
Derek Muir, Hill & Smith Holdings 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 across the transition from RIS 1 to RIS 2, we expect another year of good progress for the Group.”
