Hill & Smith backs FY expectations, appoints new chair

(Sharecast News) - Hill & Smith announced the appointment of a new chair on Wednesday as it backed its full-year expectations after strength in the US offset a weaker UK performance in the four months to the end of October. The company, which makes and supplies infrastructure products, said trading reflected good momentum in its US Engineered Solutions and Galvanizing Services divisions, while activity in the UK remained more challenging.

Infrastructure demand in the US remains strong, reflected in ongoing order book growth, it said.

Overall, revenue rose 3% during the period on an organic constant currency basis, up from 2% growth in the first half.

"With operating margin percentage ahead of the comparative period, we continue to expect to make progress in group operating margin for the full year," the company said, adding that it expects FY25 underlying operating profit to be in line with current analyst consensus of £147.3m to £149.8m.

Hill & Smith said US Engineered Solutions delivered a strong performance, with an increase in organic revenue growth versus the first half. It hailed continued high demand for its products and services across the company's larger platform businesses.

UK & India Engineered Solutions continued to experience a more challenging market backdrop, however, with revenue and profitability below the comparative period. This was down to lower activity levels across many of the group's UK markets.

Galvanizing Services delivered a strong performance, the company said, reflecting volume growth in both the UK and US.

Also on Wednesday, Hill & Smith announced the appointment of Nick Anderson as a non-executive director with effect from March 2026, and new chair from May next year. Current chair Alan Giddins is due to retire at the annual general meeting next year.

Chief executive Rutger Helbing said: "Hill & Smith delivered a positive trading performance in the period with a continuation of the trends we saw in the first half, as our US Engineering Solutions and Galvanizing Services businesses delivered good growth, partly offset by market-wide UK challenges.

"As a group, we remain on track to grow profit ahead of last year's record levels and this, combined with our strong cash generation and balance sheet, will enable us to deliver continued growth and returns for shareholders. We are well placed to maintain this momentum into the medium term."