Hill & Smith hikes divi as strong US performance drives record results

"Hill & Smith has delivered another record set of results, underpinned by the excellent performance in our US businesses, which continue to benefit from strong demand for our infrastructure solutions," said chief executive Rutger Helbing, who joined the firm in September.

Revenues for the year totalled £855.1m, up 3% on a reported basis and 5% at constant currency, with strong growth in its higher-margin Engineered Solutions (+8%) and Galvanizing Services (+6%) businesses in the US.

Underlying operating profits were up 17% at £143.5m, which the company said was ahead of market expectations, representing growth of 20% at constant currency, helped by a 200-basis point increase in the operating margin to 16.8%.

The US operations now account for 76% of underlying operating profit, making up for more subdued demand in the UK amid a challenging backdrop from certain public sector customers, the company said.

The company proposed a final dividend of 32.5p, taking the total payout for the year to 49p, up from 43p in 2023.

Hill & Smith said it was "well-positioned in structurally growing infrastructure and built environment end markets" and is confident of making "further good progress" in 2025.