15 November 2012

Interim Management Statement

Robust trading in line with the Board's expectations

Hill & Smith Holdings PLC ("Hill & Smith" or "the Group"), the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, today issues its Interim Management Statement covering the period from 1 July 2012 to 14 November 2012 ("the period"). 

The overall performance of the Group for the period has been robust and the Board's expectations for the full year remain unchanged.  The international diversity and strength of our businesses, particularly in the USA, continue to underpin our performance.

Net debt as at 31 October 2012 was £93.3m, compared with £89.1m as reported at the half year.  The increase principally reflects the investment in our new galvanizing plant in the USA and investment in capital projects in France and India.  We are not anticipating any significant change to net debt ahead of the year end.

Infrastructure Products

Utilities

The pipe supports business continues to work through a record order book and plants in China, Thailand and the UK are fully loaded into Q1 2013.  The new Indian plant is working toward ISO9001 and customer accreditation.  Early enquiries for 2013 are encouraging. 

Our US utilities businesses continue to perform ahead of expectations and their order book remains strong.

The UK water industry's AMP5 (Asset Management Programme) is now in its third year and although we have enjoyed strong organic growth in this sector, over capacity in industrial flooring and a challenging environment for our structural steel activities has added to margin pressures.

Roads

As expected, the programmes for UK roads have started to return to more normalised activity levels in the fourth quarter post the Olympics.  In the period we completed the installation of our new gantry products on the M1 and M90 motorways and are currently in the process of concluding the contracts. We continue to expect 2013 to be a stronger year as a number of managed motorway schemes are planned to commence.

Galvanizing Services

Overall, production volumes are ahead of the same period last year with the USA continuing to perform well due to strong demand for bridges, utility poles and solar frames.  UK volumes are flat year on year as a result of the lower volumes in our own road products.  Activity levels are ahead in France assisted by a large, one-off, 12 month contract for galvanizing transmission and lighting poles, which will run until the end of Q1 2013.

Outlook

We continue to see encouraging levels of demand for our utility products, particularly in the USA and Asia, driven by the requirements to update the US power transmission grid together with worldwide demand for power. Our galvanizing markets remain mixed with the US businesses enjoying positive demand from infrastructure projects, which will support their volumes in 2013.  Whilst our French businesses remain resilient we continue to be cautious about the level of economic uncertainty within Europe. The UK market remains challenging due to a lack of industrial activity and competitive pricing.

Overall, the Board's expectations for the full year remain unchanged with our international diversity continuing to provide resilience in the short term and encouraging organic growth potential in the medium to longer term. 

Financial Calendar

The 2012 interim dividend of 5.8 pence per share, announced on 9 August 2012, will be paid on 7 January 2013 to shareholders on the Hill & Smith register on 23 November 2012.  The ex-dividend date is 21 November 2012.

The Group's preliminary results for the year ended 31 December 2012 are scheduled to be announced on 12 March 2013.

- Ends -

For further information, please contact:

Hill & Smith Holdings PLC

Derek Muir, Group Chief Executive                                        Tel:  44 (0)121 704 7430

Mark Pegler, Group Finance Director

MHP Communications

John Olsen/Barnaby Fry/Vicky Watkins                                 Tel:  44 (0)20 3128 8100

Notes to Editors

Hill & Smith Holdings PLC is an international group with leading positions in the design, manufacture and supply of infrastructure products and galvanizing services to global markets. It serves its customers from facilities principally in the UK, France, USA, Thailand, Sweden, China and India.

The Group's operations are organised into three main business segments:

Infrastructure Products - Utilities, supplying products and services such as pipe supports for the power and liquid natural gas markets, energy grid components, "GRP" railway platforms, plastic drainage pipes, industrial flooring, handrails, access covers and security fencing.

Infrastructure Products - Roads, supplying products and services such as permanent and temporary road safety barriers, street lighting columns, bridge parapets, gantries, temporary car parks, variable road messaging solutions and traffic data collection systems.

Galvanizing Services which provides zinc and other coatings for a wide range of products including fencing, lighting columns, structural steel work, bridges, agricultural and other products for the infrastructure and construction markets.

Headquartered in the UK and quoted on the London Stock Exchange (LSE: HILS.L), Hill & Smith Holdings PLC employs some 3,600 staff across 51 sites, principally in 7 countries.