10th Mar 2015 09:25
LONDON (Alliance News) - Manufacturing company Hill & Smith Holdings PLC on Tuesday saw its shares rise as it posted higher pretax profit on the back of better revenue and said it would hike its dividend by 13%.
The company, which makes infrastructure products for utilities and roads and provides galvanising services, said its pretax profit in 2014 was GBP36.9 million, up 21% from GBP30.6 million a year earlier.
Revenue rose to GBP454.7 million from GBP444.5 million, up 2%, as the group's solid performance in the first half was followed by an improvement in the second half. Its roads and utilities business both performed well, while the galvanising services arm saw good performances in the UK and the US offset weakness in France.
The company has recommended a final dividend of 11.6 pence per share, up from 10 pence, bringing its total dividend to 18 pence from 16 pence a year earlier.
"2014 has been another good year for the group resulting in record revenue generation and profitability. Trading conditions in many of our end markets continued to improve throughout the second half which, together with the implementation of strategic initiatives to increase returns, delivered strong year on year profit growth." said Chief Executive Derek Muir.
Muir added that though the company expects some of its markets to remain challenging in 2015, it expects another year of "good growth".
Hill & Smith shares were up 31% to 616.88 pence on Tuesday, one of the best performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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