8th Mar 2023 09:57
(Alliance News) - Hill & Smith PLC on Wednesday reported a steep rise in annual profit as it posted record revenue on the back of strength in its US-focused business.
For 2022, the infrastructure construction company said pretax profit increased by 62% year-on-year to GBP69.3 million from GBP42.8 million in 2021. Revenue totalled GBP732.1 million, a record figure and up 17% from GBP625.2 million the previous year.
Hill & Smith proposed a final dividend of 22 pence, a 16% increase from 19p a year earlier. It meant a total yearly payout of 35.0p, up 13% from 31.0p.
Executive Chair Alan Giddins noted 2022 was a year of "significant progress," particularly for its US business, which now represents 64% of the company's operating profit.
Looking ahead, Chair Giddins said Hill & Smith is "well positioned for the longer term."
The company added: "The benefits of our agile, autonomous operating model provide the board with confidence that Hill & Smith will continue to make good progress in 2023, despite the macro-economic headwinds."
Separately, the firm said it completed the acquisition of the business and assets of Korns Galvanizing Co Inc for USD11.3 million. Korns is based in Johnstown in the US state of Pennsylvania. It has a single site specialising in spin galvanizing and generated revenue of USD5.5 million in 2022.
Hill & Smith added that Korns' operating profit margin is "modestly below the divisional average" but said it expects this to improve as its own operating model is adopted.
Hill & Smith shares fell 4.1% to 1,356.51 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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