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(Alliance News) - Hill & Smith Holdings PLC on Wednesday attributed an increase in 2019 earnings to "strong progress" in UK and US markets.
The stock was trading 6.3% higher at 1,463.00 pence each on Wednesday in London.
The company, which designs, manufactures and supplies products for the construction industry, reported pretax profit of GBP61.8 million on revenue of GBP694.7 million. In 2018, it posted pretax profit of GBP59.8 million on revenue of GBP637.9 million.
Performance in the US was driven by investment in ageing infrastructure and new construction projects, Hill & Smith said. Results from its UK business were ahead of 2018, it said, with infrastructure spending underpinning demand. Combined, the UK and US operations generated 83% of company revenue and 96% of its underlying operating profit.
However, Hill & Smith said challenges in its international operations resulted in operating losses. The Scandinavian roads business experienced difficult market conditions which resulted in the company closing underperforming depots and exiting its Norway operation. Total loss on disposal of subsidiary was recorded at GBP700,000.
The FTSE 250-listed company proposed an increased final dividend of 23.0 pence per share, up 6% from the 21.8p payout the year prior. For the full year, the dividend rose 5.7% to 33.6p from 31.8p.
Looking ahead, Hill & Smith said its outlook for 2020 remains unchanged but warned that UK roads projects may face delays.
"Whilst we may see some short-term delays in the commencement of UK roads projects under the road investment strategy programme, we expect a year of good progress for the group, said Chief Executive Derek Muir.
"The global outbreak of the COVID-19 virus is a developing situation. Presently we have seen no material impact on our business, however we continue to monitor the situation closely and will update the market if appropriate," he added.
By Ife Taiwo; ifetaiwo@alliancenews.com
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