11th Aug 2021 10:32
(Alliance News) - Hill & Smith Holdings PLC on Wednesday said 2021 operating profit will beat analyst expectations as trade recovered across all divisions in the first half, following the Covid-impacted year prior.
Shares were trading up 4.9% at 1,744.00 pence each in London on Wednesday morning.
Solihull, England-based Hill & Smith makes safety infrastructure for transport, such as roadside crash barriers.
Revenue for the first half of 2021 was up 12% year-on-year to GBP354.2 million from GBP315.6 million.
Pretax profit jumped to GBP39.2 million, 72% higher than the GBP22.8 million reported in that period the year before.
The FTSE 250-listed firm proposed a 12.0p interim dividend, 30% above the 9.2p payout offered at this point in 2020.
Hill & Smith said it expects full-year underlying operating profit to exceed the upper end guidance of GBP84.6 million currently forecast by analysts.
It will continue to mitigate the negative effects of raw material cost inflation in the rest of the year, the company added.
The company said it stands to benefit from potential infrastructure investment by the US and UK governments.
On Tuesday, the Biden administration passed a USD1 trillion infrastructure bill, offering significant transport investment that may benefit Hill & Smith's US businesses.
Meanwhile, in the UK the company said it expects some medium-term growth from the government's proposed expansion in funding for its Road Investment Strategy 2.
Chief Executive Paul Simmons said the company was: "Encouraged by the strategic progress we have made which is laying the foundations for long term sustainable growth...Longer term, with or without the benefit of additional significant government infrastructure spending, we believe we are well placed to deliver strong profit growth."
By Scarlett Butler; [email protected]
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