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Hill & Smith Hikes Payout On Strong 2017 Trading And 2018 Prospects

7th Mar 2018 08:59

LONDON (Alliance News) - Hill & Smith Holdings PLC hiked its dividend Wednesday after reporting its "best ever" trading performance in 2017, with profit and revenue both growing strongly and positive prospects for 2018.

In 2017, pretax profit expanded 45% to GBP70.2 million from GBP48.3 million the year prior. This was after revenue advanced 8.3% to GBP585.1 million from GBP540.1 million the year before.

Profit performance was also helped by the decline in restructuring and asset impairment costs in 2017 compared to 2016. Restructuring costs fell to GBP2.8 million from GBP10.5 million the year before. Impairments fell to GBP400,000 from GBP4.1 million.

Excluding one-off costs, Hill & Smith explained, underlying pretax profit expanded 15% to GBP78.5 million from GBP68.0 million the year before.

Hill & Smith - a FTSE 250-listed infrastructure products maker and metal galvanizer - hiked its final dividend per share 15% to 20.6 pence from 17.9p the year prior. For the full year, the dividend was increased 14% to 30.0p from 26.4p.

"Hill & Smith has delivered its best ever trading performance in 2017 with good organic revenue and profit growth, supported by targeted bolt-on acquisitions and the restructuring of under-performing assets, improving overall returns and shareholder value," Hill & Smith Chief Executive Officer Derek Muir said.

"Our performance remains underpinned by our consistent and proven strategy of international diversity combined with the leading positions our businesses hold in their respective markets," Muir added. "Prospects in our core US and UK infrastructure markets as well as the other geographies in which we operate continue to be positive for 2018 and beyond."

"Overall," Muir concluded, "despite political and macro-economic uncertainties, we remain well positioned to again deliver another year of progress."

Shares in Hill & Smith were 10% higher at 1,364.00 pence on Wednesday.


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