A decent performance from Hill & Smith's (HILS) US operations, combined with a steady stream of water utility-related work, meant robust full-year figures from the infrastructure and galvanising specialist. Underlying pre-tax profit rose 8 per cent to £40.4m - after adjusting for £4.8m in non-trading items and 2011's £5.9m loss from selling a subsidiary.
In fact, US profits now generate 50 per cent of the group's underlying profit, up from 32 per cent in 2011, with overseas operating profit now comprising over three quarters of the group's total. The core infrastructure business performed especially well and revenue there rose 16 per cent to £319.8m, driven by water utility work. Although the group profit margin did slip from 7.2 per cent to 5.8 per cent after a more difficult time at the roads business - reflecting reduced road work activity during the Olympics. The French roads unit is seeing lower domestic demand, too, although chief executive Derek Muir says that road-related business is now accelerating back to previous levels.