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The board of Hill & Smith Holdings announces record profits for the period of six months ended 30 June 2004, reflecting a further significant improvement in the group’s financial performance
Highlights:
- Profit before tax £5.3m (2003: £3.1m)
- up by 70.4 per cent
- Profit before exceptional items, goodwill and taxation £6.2m (2003: £5.0m)
- up by 23.0 per cent
- Operating profits before exceptional items and goodwill £7.8m (2003: £6.9m)
- up by 13.6 per cent
- Turnover £131.0m (2003: £121.1m)
- up by 8.2 per cent
- Adjusted earnings per share + 7.2p (2003: 5.9p)
- up by 22 per cent
- Dividend 2.25p (2003: 2.15p)
- up by 4.7 per cent
- Dividend cover 3.2 times (2003: 2.8times)
- Net debt £38.8m (2003: £47.8m)
+ based on profits before exceptional items and goodwill amortisation.
The group has adopted FRS 17 in relation to accounting for retirement benefits.
Apart from record profits and higher dividends, cash flow has been strong, helping to finance capital investment of over £3m and a continuing programme of innovation and product development.
Chairman David Winterbottom said: “It is particularly pleasing to report that this entire enhancement in financial performance has been achieved by organic growth.
“This improvement is based substantially on the platform of our focused capital expenditure programme, our product development activity and the strengthening of our management teams where appropriate.
“Our core businesses, which mainly supply the transport, building and construction markets also responded well to the healthy levels of demand from both the public and private sectors resulting in higher levels of profitability.
“The second half of our current financial year has started in line with our expectations and order books remain at a healthy level. “Subject to the current conditions remaining favourable in the markets we service, we look forward to another satisfactory performance for the year as a whole.”
Ends
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