- Hill and Smith
- 13 August 2025 07:28:04
Source: Sharecast
The company, which operates a range of brands across the engineering solutions markets in the US, UK and India, along with galvanising services in the US and UK, said underlying operating profit totalled £73.5m over the six months to 30 June, up 11% at constant currencies.
Revenues were up 4% at £413.6m, driven by good performances in the US Engineered Solutions and Galvanizing Services divisions.
Underlying cash conversion improved to 85%, from 83% in the first half of 2024, while the return on invested capital rose to 25.7% from 22.5%.
Meanwhile, covenant leverage improved to 0.1 times, down from 0.3 times at the end of last year, which Hill and Smith said provides it with "significant capital allocation flexibility for both growth and returns".
Regarding the portfolio, the company said it has an "active" M&A pipeline with multiple discussions ongoing, particularly involving its larger US platform businesses.
"We have delivered another record performance in the first half, driven by a strong performance in our larger US platform businesses and better profitability in the UK," said chief executive Rutger Helbing.
Looking ahead, the company said full-year underlying operating profits should be in line with market expectations, ranging from £147.3m to £153.0m, with its second-half outlook underpinned by continued growth in US end markets.
"Having assessed the capital requirements for the group, given the strength of the balance sheet and cash generation we have the capacity to return capital to shareholders, without compromising our ability to deliver on our growth priorities. We are therefore today announcing a £100m share buyback," Helbing said.