22nd May 2025 11:50
(Alliance News) - Hill & Smith PLC on Thursday said trading was positive in the first four months of the year, with a "robust performance" in Galvanizing Services.
The West Midlands, England-based infrastructure products provider expects 2025 underlying operating profit to be in line with the current analyst consensus, citing GBP150.3 million with a range of GBP145.4 million to GBP154.0 million.
This would be between 1.3% and 7.3% higher than the underlying operating profit of GBP143.5 million Hill & Smith had reported for 2024, which was 17% higher than GBP122.5 million in 2023.
The company said UK Engineered Solutions had good growth amid strong demand across larger platforms, while UK & India Engineered Solutions continued to have subdued demand in the UK but with improved profitability due to project activity and a focus on cost management.
Meanwhile, Galvanizing Services had a "robust" performance with a modest increase in US volumes despite poor weather in early 2025.
Hill & Smith said it continued to monitor effects of tariff announcements, highlighting that around 95% of its materials are sourced in the US, while less than 1% of its revenue was from US exports.
"We have low direct exposure to the tariffs announced so far. Where raw material cost increases are coming through, our businesses have been able to mitigate this by raising prices. We have not seen any indication of reduced activity levels or delays to projects, supporting our confidence that the structural drivers for US infrastructure growth remain intact," the company said.
The company will release its results for the first half of the year on August 13.
Hill & Smith shares fell 3.7% to 1,850.00 pence each late on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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