Manufacturing group Hill & Smith Holdings has said international income – particularly from the US – has helped it meet management targets.
Shirley-based Hill & Smith (HILS) said export sales continued to underpin its performance in the first half of the year.
The group, which was previously chaired by recently deceased industrialist David Grove, said it had managed to reduce net debt to £110.8 million, compared with £113.9 million as reported at the half year.
It has been wholly focused on infrastructure products and galvanizing services as part of growth plans.
The group, which makes road safety barriers and bridge parapets among other things, said the UK roads market “remains challenging against the background of reduced government infrastructure spending”.
However, it added: “Our expansion into other road markets through the recent acquisition of ATA in Scandinavia, and our push for international growth in Australia and the Middle East, are helping to mitigate the UK downturn.”
The group said its utilities arm had a robust order book and, as anticipated, was delivering a stronger second half performance, despite its Thai facility, while not directly impacted by the current flooding in Bangkok, experiencing flood-related issues with its supply chain.
In terms of galvanizing services, the group has been boosted by US operations on the back of renewable energy projects and strong general industrial demand.
Speaking of the death of Mr Grove OBE on November 12, chief executive Derek Muir paid tribute to his time with the group.
He said: “As chief executive and latterly chairman, from 1998 until his retirement in 2009, David was the prime driving force behind Hill & Smith Holdings and the architect of the business it is today.
“During that period he drove the expansion and profitable growth of our group, and embedded the entrepreneurial culture that remains at our heart today. Our thoughts are with his family at this very sad time.”
