Birmingham-based engineering group Hill & Smith Holdings is set to report trading results ahead of expectations when it announces its figures for the first half of 2008 on August 18.
Hill & Smith chief executive Derek Muir said: “Hill & Smith continues to deliver excellent organic growth across all divisions, with revenue, operating profit and order books all ahead of the same period last year.
“Our markets remain strong, being driven by expenditure on infrastructure products, particularly for oil and gas, power generation, and, in the UK , flood prevention, water treatment and health and safety.
“Our strong presence in high growth market segments, allied to our new product development, gives us confidence for continued growth in the second half of the year and in 2009.
“Major contributors to the organic growth have been ‘TopDeck,’ a temporary or permanent car parking solution, variable electronic message signs aimed at improving traffic flow on the motorway network and GRP railway platforms to accommodate increased rail capacity.”
Hill & Smith has announced a proposed investment of 23.7 million euros (£18.8 million) in the acquisition of the remaining stake in German investment company Zinkinvent, in which it has a 68.2 per cent shareholding. Zinkinvent owns Vista, a leading galvaniser operating in Europe and the USA.
“We now have a growing international base to our markets with 40 per cent of the group’s profits being generated from businesses operating in the Far East, mainland Europe and the USA ,” said Mr Muir.
Along with the proposed further investment in Zinkinvent, the group also announced the proposed sale of its trading subsidiaries in the Benelux countries and Germany for 29.9 million euros (£23.7 million).
“The net effect of these transactions will be earnings enhancing and further benefits are expected from 100 per cent ownership of Zinkinvent’s key businesses in France and the United States ,” added Mr Muir.
The proposed additional investment in Zinkinvent and the proposed sale of the Benelux and German businesses are subject to approval by shareholders at a general meeting.
