Hill & Smith powers ahead to record revenues and profit growth
11 March 2008 |
Hill & Smith Holdings PLC has today (TUES) announced record revenues and profits for 2007, with underlying * profit before taxation up by 77.8 per cent to £32.9m from £18.5m in 2006.
The group operates across the infrastructure products, galvanizing services and building and construction products sectors. Products range from highway safety barriers, street lighting on roads and electronic information for road signs, through to pipe supports for the liquid natural gas market and structures and components for electricity sub stations.
The group reported continued strong organic growth and market demand. The increased holding in Zinkinvent GmbH's European and US operations also added significant additional income.
Underlying * earnings per share increased by 34.3 per cent to 27.8p. The group has increased its underlying* earnings per share by an average compound growth rate of 28 per cent annually over the last three years.
The proposed final dividend has been set at 5.1p (2006: 4.2p), making the total dividend for the year 8.7p (2006: 7.2p), an increase of over 20 per cent and the third consecutive year that such an increase has been delivered. Total dividends are covered 3.2 times by earnings.
Revenues increased by almost a third to £402m from £306m. Chief Executive Derek Muir, emphasising the underlying strength of the business and its markets, commented:
"Government commitment to maintain and improve an ageing infrastructure, increasing legislation, health and safety and regulatory requirements, along with the effects of climate change, combine to offer exciting opportunities within global infrastructure markets.
"We will continue to develop our market presence and products to benefit from such opportunities."
The contribution from the Infrastructure Products division powered ahead in the year, having been fuelled by the investment and product development in previous years.
In July, a further investment of €26m in Zinkinvent GmbH took the group's shareholding from 33.3 per cent to 68.2 per cent, making the company a subsidiary.
As a result, the trading performance of Zinkinvent was fully reflected in the Group's results for the second half of the year whilst it had been dealt with as an associated company in the first half.
An excellent contribution from the galvanizing division was driven by the increased stake in Zinkinvent and its strong trading results, together with the inclusion of the first full year of trading for Metnor Galvanizing (acquired in November 2006).
Chairman David Grove highlights the impact of the international expansion combined with continuing organic growth.
"Our international expansion is not just about Zinkinvent", he said. "We have a very successful business in Thailand, where our pipe supports business has received a sustained boost from the growing LNG (liquid natural gas) market.
"We have a great foothold now in the huge US market where we are a leading galvanizer and where our other products include high quality structures and components for electricity substations. These are in demand to replace ageing equipment.
"Our international investment is a major step forward for the group, enabling us to access new markets.
"Across the group, our strategy of investing in core business areas where we have a sound market positioning continues to pay off. The result has been strong organic growth. The current year has started well with strong demand from our core markets and the benefits arising from our growth strategy. I look forward to reporting another year of progress in 2008."
In its preliminary annual results, the group announced the appointment of a new Group Finance Director, Mark Pegler, following the retirement of his predecessor Chris Burr.
* before business reorganisation, property items and the amortisation of acquisition intangibles. |
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Enquiries:
Derek Muir, Chief Executive
Hill & Smith Holdings PLC
Tel: 0121 704 7430
David Grove, Chairman
Hill & Smith Holdings PLC
Tel: 0121 704 7430
Tel: 0797 332 5667
Edward Carter
Freshwater UK PLC
Tel: 0121 633 7775
Tel:
0777 037 8097
Anna McNeil
Freshwater UK PLC
Tel:
0121 633 7775 |
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