Record second half for Hill & Smith
Specialist West Midlands engineering group Hill & Smith has seen a small hike in underlying profit after record second half earnings helped it overcome a slow start to its year.
Over 2013 as a whole earnings were almost flat, up just 0.9% to £444.5 million, while underlying pre-tax profits were up 2% to £41.2 million.
The company revealed today that profits from its roads business had 'significantly improved' in the wake of the Highways Agency announcement of more than £10 billion of roadwork schemes.
During the year the group sold its Redman Fisher Engineering arm at Halesfield, Telford. This then moved to Middlesborough, with the loss of over 60 jobs.
The group's core Hill & Smith road safety barriers business is based in Bilston.
A lack of major projects hit demand for its utilities businesses but acquisitions and an improving UK market boosted volumes for its galvanising businesses, including Joseph Ash in Halesowen.
The group still employs 3,500 people at 50 sites in seven countries, including Bromford Iron & Steel in West Bromwich.
Chief executive Derek Muir said: ""We achieved a record earnings performance in the second half after a subdued start to the year, and made important strategic investments and changes across the group. Encouragingly, the momentum seen in the second half of 2013 has continued into the first two months of 2014."
He added: "For 2014 we expect good growth at constant currencies, although reported results are likely to be impacted by recent adverse foreign currency movements. Overall, the prospects for both infrastructure products and galvanising services are encouraging as we see signs of increased activity and future capital spend."
