Hill & Smith's (HILS) full-year results are always notable for their clarity, but why would you seek to obfuscate when the figures speak for themselves. The infrastructure and galvanizing specialist drove up underlying operating profit 17 per cent at constant currencies to £70.6m, with the underlying margin up 90 basis points to 13.1 per cent. Management felt at ease to increase the final dividend by a third as free cash flows came in at £41.6m, against £35.7m in 2015.
The Solihull group highlighted the benefits accruing from the government's UK Road Investment Strategy. Management has sensed greater urgency on the part of ministers to drive through large-scale infrastructure projects, evidenced by a surge in revenue at Hill & Smith's roads segment, up a quarter to £168m.