The robust trading patterns outlined in November's trading update suggest that full-year results at Hill & Smith (HILS) won't contain any nasty shocks. In short, that means we're likely to see further benefits from the UK and US government's commitments to spruce up their respective crumbling infrastructure.
In galvanising, a process that involves dipping components that make street lights, bridges and fencing in molten zinc to prevent them rusting, all eyes will be on the profitability of the recently opened £9.4m brownfield site in Memphis. Expectations are high, given that the plant has no rivals in a 200-mile radius. Investors will also hope that the group's cost-cutting measures and legacy contracts can offset the effects of a weaker French economy.
Meanwhile, Hill's road products should continue to prosper from the UK government's motorway investment strategy. Expect more strong demand for variable message signs, and an update on the previously delayed Smart Motorway projects.
