Hill & Smith (HILS) Trading Update summary

Trading performance and outlook

• Revenue rose 7.5% on a constant currency basis and 2% organically, improving on first half growth rates.

• Group operating margin exceeded the same period last year, with strong cash conversion.

• Full-year 2024 operating profit is expected to align with analyst consensus of £139.1m, within a range of £135.9m–£145.1m.

• Positive trading momentum driven by US market demand and focused M&A strategy.

• A one cent change in the USD/GBP rate impacts annual revenue by £4.0m and operating profit by £1.0m.

Divisional performance

• Engineered Solutions saw robust demand in US infrastructure, with successful acquisitions of Whitlow and Trident Industries.

• Galvanizing Services achieved 13% volume growth in the US and 7% higher volumes in the UK, supporting revenue and profit growth.

• Roads & Security division experienced lower revenue and profit, affected by a challenging UK market and subdued US off-grid solar lighting demand.

Strategic and operational highlights

• Integration of Whitlow and Trident Industries is progressing well, with encouraging initial trading.

• CEO Rutger Helbing highlighted attractive infrastructure end markets and strong prospects for value creation.

• Preliminary results for the year ending 31 December 2024 will be announced on 12 March 2025.