7th Aug 2019 09:32
(Alliance News) - Shares in infrastructure products maker Hill & Smith Holdings PLC surged Wednesday as it boosted its interim dividend on the back of rising profit and revenue in a "much improved" performance.
Meanwhile, the FTSE 250-listed firm announced its new chair to replace retiring Jock Lennox.
Shares in Hill & Smith were 8.1% higher at 1,134.00 pence in London on Wednesday.
For the six months ended June, pretax profit widened 16% to GBP33.4 million from GBP28.9 million the year prior. This was after revenue rose 15% to GBP339.5 million from GBP295.4 million the year prior.
"Hill & Smith delivered a much-improved performance in the period over a weaker first half last year," Chief Executive Derek Muir said.
"We benefit from our strong positions in niche infrastructure markets, predominantly in the UK and US where we continue to see sustained infrastructure spend, and our proactive approach to the management of our portfolio of businesses."
Hill & Smith proposed a 10.6 pence per share interim dividend, up 6.0% from 10.0p the year prior.
"Overall, we are confident our market-leading positions, business model and financial strength position us well for further growth," Muir added.
"Whilst short term political and macroeconomic uncertainties remain, particularly in the UK, our expectations for the full year are unchanged."
In a separate announcement on Wednesday, Hill & Smith promoted Non-Executive Director Alan Giddins to chair from the start of October. He has been a non-executive since October 2017.
"I am delighted Alan has agreed to take on the chairman role at Hill & Smith," Muir said. "The board has benefitted hugely from his involvement with the group over the last 18 months, and I am very much looking forward to working with Alan in his new role."
Giddins - a former head of private equity at 3i Group PLC - will replace Chair Jock Lennox who is retiring. Lennox has been chair since 2017.
Muir added: "On behalf of the board I would also like to thank Jock for the significant contribution he has made to Hill & Smith, first as a non-executive director and then as chairman."
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