Hill & Smith Regulatory News (HILS)

9 May 2008 07:00

Hill & Smith Hldgs PLC09 May 2008 AGM and Interim Management Statement Hill & Smith Holdings PLC is today issuing its first Interim ManagementStatement ahead of its Annual General Meeting to be held at 11.00 a.m. 9th May2008 at the National Motorcycle Museum, Solihull. This Interim ManagementStatement covers the period from 1 January 2008 to 9 May 2008. Group Overview The positive momentum reported in our Report & Accounts for the year ended 31December 2007 has continued with our core markets benefitting from healthydemand in each of the three divisions of the Group. The resulting sales growthcontinues to demonstrate the benefit of the Group's innovative productdevelopment strategy and provides confidence in its future growth prospects. Divisional Overview Infrastructure Products Group ("IPG") During the period the IPG division has experienced robust demand for its coreproducts, particularly for its temporary crash barrier, "Varioguard". Similarly,our pipe supports business continues to benefit from the sale of the engineeringproducts required for the growing liquid natural gas market and the location ofits low cost Thai operating facilities. Techspan has received its first ordercall-off for the Highways Agency variable message signage contract and we havesuccessfully launched our innovative temporary car parking solution, "TopDeck",with an order from a major UK airport. Galvanizing Services Volumes are consistent with prior year and margins have been maintained. Theprice of zinc used in the companies galvanizing processes has reduced to a morerealistic base level and continued to fluctuate with a downward trend during theperiod. The Voigt & Schweitzer operation in the USA has advanced its plans to expand itsplant capacity in Delaware to service its growing customer base. Building and Construction Products Overall, demand for the division's products has been healthy, particularly forindustrial flooring where we are confident the development of our GRP (glassreinforced plastic) railway platforms will generate future growth. Finance The Group generates a proportion of its earnings through its overseas businesseswhere the current strength of the Euro will have a favourable translationalimpact in comparison to 2007. Our overseas operations are financed throughforeign currency denominated borrowings and therefore the strength of the Eurohas increased both the Sterling carrying value of net assets and net debt. Steel prices have risen significantly during the period and have been managedthrough both increased selling prices and forward buying albeit at the expenseof increased investment in working capital. Acquisitions As part of our strategy for growth we continue to review opportunities offeringpotential for increasing our product portfolio and market share. Summary Our performance remains in line with expectations and the Board anticipatesbeing able to report continued progress in the year. There have been no other material events since the announcement of our annualresults on 11 March 2008. Enquiries: Hill & Smith Holdings PLCD L Grove Chairman Tel: 0121 704 7430Mobile: 07973 325667 D W Muir Chief Executive Tel: 0121 704 7430Mobile: 07703 535540 This information is provided by RNS The company news service from the London Stock Exchange