13th Aug 2025 09:23
(Alliance News) - Hill & Smith PLC on Wednesday said a strong US performance, offset more challenging conditions in the UK, helping the firm deliver strong growth in first half profit.
The Solihull, England-based infrastructure products provider said pretax profit rose 9.9% to GBP63.5 million in the first six months of 2025 from GBP57.8 million a year prior.
Revenue was 2.1% higher at GBP431.6 million from GBP422.7 million, rising by 4% at constant currency, driven by good performances in US Engineered Solutions and Galvanizing Services.
Hill & Smith noted continuing strong infrastructure demand in the US with record order books although UK markets were more "challenging", with subdued activity particularly in road infrastructure.
Shares in Hill & Smith jumped 13% to 2,230.00 pence each in London on Wednesday morning.
Sales grew 10% at constant currency in the US Engineered Solutions division, but fell 5.5% in the UK & India Engineered Solutions unit.
Chief Executive Rutger Helbing said: "We have delivered another record performance in the first half, driven by a strong performance in our larger US platform businesses and better profitability in the UK. We also delivered strong free cash flow resulting in minimal leverage which provides us with significant financial firepower. Our second half outlook remains positive, underpinned by continued growth in our US end markets."
Hill & Smith expects full-year underlying operating profit in line with market expectations, which stand at GBP150.4 million, representing a 4.8% rise from GBP143.5 million it achieved in 2024. In the first half of 2025, underlying operating profit increased 7.5% to GBP73.5 million from GBP68.4 million a year ago.
Operating margin improved to 17% in the first half from 16.2% a year ago, driven by an improved portfolio mix, with good growth seen in the higher margin US businesses, improved UK profitability and a positive impact from non-core disposals in the first quarter.
The firm raised its half-year dividend by 9.1% to 18.0p per share from 16.5p.
In addition, it announced a GBP100 million share buyback that is expected to complete by no later than March 31 2027.
Numis Securities Ltd and Jefferies International Ltd will operate the programme.
The firm said it was confident that, given the strength of the balance sheet and cash generation, it has the capacity to make an additional return of capital to shareholders and remain comfortably within its target leverage range of 1 to 2 times.
Hill & Smith said: "Our approach to capital allocation remains clear and unchanged. We continue to prioritise investment in organic and inorganic growth. In 2025 we are investing in increased capacity for our transmission & distribution and engineered supports businesses in the US, and we continue to maintain an active M&A pipeline."
By Jeremy Cutler, Alliance News reporter
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