Hill & Smith Holdings PLC ("Hill & Smith" or the "Company") is pleased to announce its preliminary results for the year ended 31 December 2002
HIGHER PROFITS AND DIVIDENDS,
REDUCED BORROWINGS
Hill & Smith Holdings PLC (‘Hill & Smith’ or ‘the Group’) has announced substantially increased profits, a higher dividend and a significant reduction in Group borrowings.
The Group has reported that profit before taxation increased to £6.5m compared with the previous year’s £1.6m, calculated on an annualised pro rata basis from the prior 15 month period. On a similar basis, Group turnover increased by 10.0 per cent to £212.7m.
Operating profit before exceptional items and goodwill amortisation rose by 11.6 per cent to £14.0m compared with the prior period annualised equivalent of £12.6m.
The Board is recommending a final dividend of 2.4p a share, which means that the total dividends for the year will have effectively risen on an annualised basis by 3.2 per cent to 4.5p.
Earnings per share before exceptional items and goodwill amortisation rose to 11.79p, an increase of 22.7 per cent compared with the previous period’s annualised figure.
Highlights
Year Ended
31 December 2002 Pro rata
Year Ended
31 December 2001
15 Months Ended
31 December 2001
* Turnover £212.7m £193.5m £241.8m
* Operating profit+ £14.0m £12.6m £15.7m
* Profit before taxation+ £10.0m £8.1m £10.1m
* Profit before taxation† £6.5m £1.59m £1.99m
* Earnings per share+ 11.79p 9.61p 12.01p
* Dividends 4.50p 4.36p 5.45p
* Net borrowings £44.9m £52.1m £52.1m
+ before exceptional items and goodwill amortisation
† FRS3
The previous accounting period was one of 15 months ended 31 December 2001, as a result of the change during that period to a 31 December financial year end. Comparative figures above are stated both for the 15 month prior period and an annualised pro rata equivalent of 12 months.
Hill & Smith’s Chairman, David Winterbottom, said: “We have delivered improved profits on increased sales as we continued to see success from our strategy of developing our building and construction businesses through organic growth and selective acquisitions. Operating margins in these businesses showed encouraging growth in the year.
“We have effectively increased the dividend again this year and dividend cover has improved further to 2.6 times. Gearing has also reduced substantially, leading to a corresponding reduction in interest costs.
“We are continuing to benefit from growing demand in infrastructure and construction markets, particularly as a result of the increased public expenditure.
“All the indications are that this market will continue to grow and our investment and acquisitions will help us to take advantage of opportunities in this sector.
“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.”
Ends
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