Hill & Smith sees 'modest recovery' in performance in May

Construction products manufacturer Hill & Smith reported a "modest recovery" in performance last month as Covid-19 lockdown measures were eased, but stated it was still cautious moving forward due to the heightened level of market uncertainty.

Hill & Smith said on Wednesday that trading in April had been significantly impacted by the coronavirus pandemic, associated business closures and reduced activity levels.

However, while the FTSE 250-listed group posted a 26% year-on-year decline in revenues for both April and May, Hill & Smith actually managed to remain profitable during both months.

Although Hill & Smith stated it was seeing a "gradual and controlled recovery" across its operations, the firm said it was "still too early" to predict the "duration or the severity" of the economic disruption caused by Covid-19.

Hill & Smith also highlighted that its full-year trading performance was likely to be second-half weighted.

Net debt was cut from £215.3m to £202m and Hill & Smith said it was "well within its borrowing covenants".

As of 0900 BST, H&S shares were up 0.15% at 1,302p.