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Hill & Smith PLC on Wednesday reported a steep rise in annual profit as it posted record revenue on the back of strength in its US-focused business.
For 2022, the infrastructure construction company said pretax profit increased by 62% year-on-year to £69.3 million from £42.8 million in 2021. Revenue totalled £732.1 million, a record figure and up 17% from £625.2 million the previous year.
Hill & Smith proposed a final dividend of 22 pence, a 16% increase from 19p a year earlier. It meant a total yearly payout of 35.0p, up 13% from 31.0p.
Executive Chair Alan Giddins noted 2022 was a year of ‘significant progress,’ particularly for its US business, which now represents 64% of the company’s operating profit.
Looking ahead, Chair Giddins said Hill & Smith is ‘well positioned for the longer term.’
The company added: ‘The benefits of our agile, autonomous operating model provide the board with confidence that Hill & Smith will continue to make good progress in 2023, despite the macro-economic headwinds.’
Separately, the firm said it completed the acquisition of the business and assets of Korns Galvanizing Co Inc for $11.3 million. Korns is based in Johnstown in the US state of Pennsylvania. It has a single site specialising in spin galvanizing and generated revenue of $5.5 million in 2022.
Hill & Smith added that Korns’ operating profit margin is ‘modestly below the divisional average’ but said it expects this to improve as its own operating model is adopted.
Hill & Smith shares fell 4.1% to 1,356.51 pence each on Wednesday morning in London.
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