24th May 2022 10:33
(Alliance News) - Hill & Smith Holdings PLC on Tuesday said sales and demand in 2022 have been strong so far, and its performance is on track to meet full-year expectations.
In the four months to April 30, the Solihull, England-based infrastructure company said revenue was 9% ahead year-on-year, driven by pricing actions and "robust" levels of demand across its portfolio.
The firm said it is on track to deliver underlying operating profit for 2022 in line with market expectations of GBP92.0 million.
Its Galvanizing division grew revenue and profit in all three regions, as the firm focused on higher margin customers and increasing volumes to offset input cost inflation. Utilities also put in a good performance against strong comparators in the prior year, despite the hit to margin from product mix in US composites, H&S said.
Use of UK temporary safety barrier fleets in the Roads & Security division was lower, as expected, however H&S maintains the increased amount of road works to come in the second of the year should boost the division's performance.
"We remain positive on the medium to longer-term outlook, supported by strong market growth drivers for both sustainable infrastructure and safe transport," the company said.
Shares in Hill & Smith were up 1.2% to 1,376.00 pence each in London on Tuesday morning.
By Elizabeth Winter; [email protected]
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