(Alliance News) - Hill & Smith Holdings PLC on Wednesday said it will resume shareholder payouts following a "resilient" first half performance in the face of Covid-19 pandemic.
The Solihull, England-based company added that it expects a stronger performance in the second half of 2020 after seeing a gradual recovery in trading and assuming that end markets remain open.
The company, which makes road safety barriers, pipe supports and street lighting columns, recorded pretax profit of GBP19.5 million for the six months to June 30, down 42% from GBP33.4 million recorded in the year ago period. Revenue fell 7% to GBP315.6 million.
Stripping out exceptional items, pretax profit fell 38% year-on-year to GBP22.8 million.
Hill & Smith said first half performance was hurt by Covid-19 related business closures and reduced activity levels from the middle of March. However, the company has seen a gradual recovery in business trading since reopening of businesses in May.
The FTSE 250-listed company resumed dividend payments. declaring an interim dividend of 9.2 pence per share, down from 10.6p paid a year ago.
"The board will continue to review the application of its dividend policy but is focused on maintaining dividends that are sustainable and progressive," the company said.
Looking forward, Hill & Smith said it remains well positioned to benefit from government stimulus in its major operating markets as well as new business opportunities.
Shares in Hill & Smith were up 3.3% at 1,260.00 pence each in London on Wednesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Hill & Smith (HILS)