Hill and Smith revenues grow, operating margins improve

Construction products manufacturer Hill & Smith said on Wednesday that trading in the four months ended 31 October had been "positive".

Reflecting "good momentum" in its engineered solutions and galvanising services divisions, Hill & Smith said revenues were 7.5% higher on a constant currency basis during the period, while operating margins were also said to be ahead of the same period a year earlier.

The FTSE 250-listed group noted that its engineered solutions division delivered "a robust performance", supported by strong demand across a range of US infrastructure markets, and said its galvanising services unit delivered "good revenue and profit growth", reflecting 13% volume growth in its higher-margin US business and "a resilient performance" in the UK.

Chief executive Rutger Helbing said: "The group is exposed to attractive infrastructure end markets with structural growth drivers and therefore has excellent prospects for further value creation for our shareholders

"The positive trading performance during the period reflects the strong momentum in demand for our products and services, particularly in the US, and the benefits of our focused M&A strategy"

As of 0910 GMT, Hill & Smith shares were up 2.16% at 2,125.0p.

Reporting by Iain Gilbert at Sharecast.com