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Hill & Smith looks to a biased second half

The infrastructure engineer has reported a downturn at the start of 2018
May 21, 2018

Shares in Hill & Smith (HILS) came under pressure after the infrastructure engineer reported that operating profits and revenue for the first four months of the year were lower than the corresponding period a year ago, although this was partly as a consequence of unfavourable currency translations.

IC TIP: Hold at 1406p

The FTSE 250 constituent said that its international businesses was performing well, but group activity had been adversely affected by project delays and bad weather in the UK. Chief executive Derek Muir reiterated that “expectations for the full year remain unchanged, albeit with a greater second-half bias”.

The group remains in acquisitive mode, with its latest deal, the acquisition of Work Area Protection Corp (WAPCO) for $42m (£31m) announced earlier this month. US-based WAPCO produces a wide range of road work-zone safety products, including crash attenuators, temporary variable message signs and traffic control systems – a neat fit with Hill & Smith’s existing offering.