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(Alliance News) - Hill & Smith PLC on Tuesday reported higher revenue and profit last year, while announcing a small US acquisition as part of its growth plans.
The Solihull, West Midlands-based provider of infrastructure products reported pretax profit of GBP93.2 million in 2023, up 34% from GBP69.3 million in 2022, as revenue grew by 13% to GBP829.8 million from GBP732.1 million.
Operating profit was up 32% to GBP103.8 million from GBP78.5 million, as operating profit margin improved to 12.5% from 10.7%. On an underlying basis, operating profit margin widened by 150 basis points to 14.8%.
In response, Hill & Smith hiked its final dividend by 27% to 28.0 pence per share from 22.0p a year before. This brought the full-year payout to 43.0p, up 23% from 35.0p.
Hill & Smith Executive Chair Alan Giddins said he expects business momentum to continue in 2024. "Over the medium term, we see significant opportunities as a result of the group's exposure to infrastructure markets with strong structural growth drivers, particularly in the US, and through our ability to use selective [mergers and acquisitions] to acquire complementary technologies and access both new customers and end markets," he said.
On Tuesday, Hill & Smith said it completed the acquisition of FM Stainless LLC for USD8.3 million in cash, with up to a further USD500,000 due upon reaching agreed performance targets. FM Stainless is based in the US state of Georgia. It makes stainless steel pipe supports and other steel products for the water and waste water sector, with underlying earnings of USD1.6 million on revenue of USD8.6 million in 2023.
Hill & Smith said FM Stainless will be added to Paterson Group within its Engineered Solutions division. It is expected to be earnings enhancing in 2024.
Shares were up 3.3% to 1,911.20 pence early Tuesday in London.
By Tom Waite, Alliance News editor
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