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(Sharecast News) - UK-based transport infrastructure provider Hill & Smith said annual profits would be at the upper end of guidance, driven by strong trading and foreign exchange tailwinds.
The company, which makes highway safety barriers, said trading in the four months to October 31 remained robust with revenue from continuing operations 18% ahead of the prior period on an organic constant currency basis.
"Our operating companies continue to take pricing actions to offset cost input inflation and we are pleased to report that operating margins were ahead of H1 2022 and the same period last year," it said in a trading statement.
Hill & Smith now sees underlying operating profit to be at the top end of its compiled analyst expectation range of £84.9m-£89.7m on a continuing operations basis. It added that it expected to see a material improvement in cash generation during the second half of this fiscal year.
"While mindful of current macroeconomic uncertainty, the group has a proven track record of resilience and, with exposure to the structural growth markets of sustainable infrastructure and safe transport, is well positioned to deliver against its strategic goals. Consequently, we expect to make further progress in 2023."
Reporting by Frank Prenesti for Sharecast.com
