Hill & Smith PLC - Investment Case
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Investment Case

Structural tailwinds in attractive markets

Opportunity to grow market share in significant, high return markets that are backed by infrastructure investment and long-term growth drivers.

Solid execution record

Hill & Smith’s autonomous model has delivered solid performance over the long term. The inherently agile model is key in mitigating business challenges. For example around supply chain, labour and more recently COVID.

The model has recently been enhanced to make it scalable and supported by an ambitious management team.

Focus on high value add niche applications

Our increasing focus on high value, fast growing niche markets fuels organic growth, generates higher gross margins, permitting investment to improve the quality of our operating companies and it increases our pricing power.

Portfolio improvement

Our structured and disciplined approach to acquisitions and disposals means we are increasing the quality of the operating companies that make up the Group and ensuring that they are each aligned to long-term growth drivers.

Active product management within our operating companies drives gross margin improvement, allowing sensible reinvestment in the company through talent and innovation.

Purpose and sustainability

We have a clear and well-understood purpose. Our products are focused on increasing the sustainability of infrastructure and making transport safer.

Strong balance sheet and cash generation

High and improving returns convert into strong cash generation, allowing investment to further grow the business and deliver a sustainable dividend policy.