Hill & Smith sees FY earnings at top end boosted by weak pound

Infrastructure supply and galvanising services group Hill & Smith said it expected to post full year earnings at the top end of expectations, assisted by the slump in the pound after the Brexit vote.

In a trading statement, the company said underlying revenue increased by 15% to £185m, with translational currency benefits contributing £9.1m or 6%.

After adjusting for additional revenue of £12.7m from acquisitions and reduced revenue from restructuring actions of £6.8m, organic underlying revenue growth was £9.2m or 5%, the company said.

Underlying operating profit and operating margin are ahead of the same period last year, it added.

Net debt at 31 October 2016 was £127.4m compared to £99.5m at 30 June 2016, principally reflecting £22.5m of expenditure on two acquisitions. Unfavourable movements in exchange rates since the half year on the translation of non-Sterling denominated debt also added £4.4m.