Last checked at 19 Nov 2008 07:00
Second Interim Management Statement 2008
19 November 2008
Hill & Smith Holdings PLC, the international group focused on providing products and services to the infrastructure, galvanizing, building and construction markets, today publishes its Interim Management Statement for the period from 1 July 2008 to date.
Overall demand for our products and services remains healthy and the Group has continued to deliver strong financial results. Certain areas of the building and construction division have however been more challenging, but early action has been taken to reduce operating costs to match revenue, enabling this division to perform ahead of last year.
The Board is confident that the performance for the year ending 31 December 2008 will be in line with market expectations.
The acquisition of Creative Pultrusions in September has been integrated into the Group and we are confident of a strong performance from them in 2009. Our new galvanizing plant in Delaware, USA will open in December 2008 and we will enjoy a full year's contribution from this larger efficient facility in 2009. Our further expansion in the US market, together with the introduction of Zoneguard in the USA, will see 50% of the Group's profits being generated from its overseas operations.
During the period we also successfully concluded the final phase of our acquisition of full ownership of the Zinkinvent businesses in France and the USA, coupled with the disposal of our shareholdings in Zinkinvent's galvanizing operations in Benelux and Germany.
Also, as announced yesterday, we have divested of the steel reinforcing bar and mesh business with the disposal of Express Reinforcements Limited to Celsa Steel Service (UK) Limited for gross cash consideration of £12.8m. This continues our strategy of focusing on our core businesses and markets.
The strength and breadth of our product range, together with our strong market positions, ensure that we are well positioned to take advantage of opportunities that arise, in particular from key infrastructure projects in the UK and, globally, in the LNG market.
Based upon the current condition of the markets in which the Group operates the Board expects our growth to continue in 2009. A further update on prospects will be provided when the Group reports its full year results in early March.
Derek Muir Mark Pegler
Chief Executive Officer Group Finance Director
Westhaven House
Arleston Way
Shirley
Solihull
B90 4LH
Tel: 0121 704 7430
Mobile: 07703 535540