| Hill & Smith Holdings PLC ("Hill & Smith" or "the Company") has announced substantially increased operating profits and an increased dividend.
The Company has reported that operating profits before exceptional items and goodwill amortisation have more than trebled to £15.7 million for the 15 months ended 31 December 2001, compared with £4.8 million for the year ended 30 September 2000. This represents an increase, on an annualised basis, of 162%.
The Board is recommending a final dividend of 1.25p a share, which, when added to the two interim dividends already declared, makes a total dividend of 5.45p. This represents an annualised equivalent increase of 3.8 percent over last year.
Earnings per share before exceptional items and goodwill amortisation rose to 12.01p from 7.63p, an increase of 26 percent on an annualised basis.
Highlights of the results for the 15 month period (comparatives for the year ended 30 September 2000) were:
- Turnover at £241.8 million (2000: £58.9 million)
- Operating profit before exceptional items and goodwill amortisation at £15.7 million (2000: £4.8 million)
- Profit before taxation before exceptional items and goodwill amortisation at £10.1 million (2000: £4.1 million)
- Earnings per share before exceptional items and goodwill amortisation at 12.01p (2000: 7.63p)
- Proposed final dividend of 1.25p, making a total of 5.45p (2000: 4.20p)
- Net debt reduced to £52.1 million by 31 December 2001 from the level of £78.0 million immediately following the acquisition of Ash and Lacy Plc.
- Acquisition of Ash and Lacy Plc successfully completed and integrated with costs of rationalisation absorbed.
The trading results include those of Ash and Lacy Plc and its subsidiaries from 2 November 2000, the effective date of acquisition.
Since the completion of the acquisition of Ash and Lacy Plc, a number of actions have been taken to realise the benefits of the takeover. These included the closure of Ash and Lacy's head office, the sale of surplus properties and the integration and rationalisation of business operations including some site closures.
A vigorous programme of capital expenditure was maintained which will help provide a basis for future profit growth.
Hill & Smith's Chairman, David Winterbottom, said: "I am pleased to report further progress made by the Group in the fifteen month period ending 31 December 2001.
"A number of actions have been taken during the period to realise the benefits of the Ash and Lacy takeover.
"We continue to seek out opportunities which will further enhance the value of the Group.
"Whereas volumes and margins have generally fallen in our commodity-based businesses, demand is increasing in many of our larger businesses, which are benefiting from increased infrastructure and construction spending in the UK.
"The current trading period has started in line with our expectations and, if market conditions remain stable, I look forward to another satisfactory performance this year."
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