17th Jun 2020 09:49
(Alliance News) - Hill & Smith Holdings PLC on Wednesday said it delivered a strong performance in the first quarter of 2020 but took a hit from coronavirus in April and May.
The West Midlands-based construction products supplier said trading in the first quarter was strong, despite the disruption caused by Covid-19 in some of its businesses from the middle of March.
Hill & Smith said revenue for the three months to March 31 increased organically by 4.8% to GBP170.7 million, with underlying operating profit also growing year-on-year.
However, trading in April was significantly hurt by Covid-19 related business closures and reduced activity levels, the company said.
In May, it has seen a modest recovery in trading, but said it remains cautious, given the level of market uncertainty. Revenue for April and May was 26% lower than in the same period last year, however the company noted that it remained profitable in both months.
Hill & Smith said it continues to be cash generative and maintain a strong liquidity headroom position with a robust balance sheet. Net debt as at May 31 was GBP202.0 million compared with net debt of GBP215.3 million as at the end of 2019.
"Our decentralised model, with agile leaders close to their local markets, has enabled Hill & Smith to respond swiftly to Covid-19 developments as they have unfolded over recent months," said Chief Executive Derek Muir.
"Looking forward, we believe the group is well positioned to benefit from likely government stimulus in our major markets, as well as targeted new business opportunities underpinned by our strong financial position," added Muir.
FTSE 250-listed Hill & Smith shares were trading 2.2% higher in London on Wednesday at 1,328.00 pence each.
The company said it will report its half-year results on August 5.
By Evelina Grecenko; [email protected]
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