Hill & Smith remains profitable despite revenue hit
Infrastructure products supplier Hill & Smith saw a "modest recovery" in performance in May as lockdown measures eased, but stressed it remained cautious given the level of market uncertainty.
The Solihull-headquartered group said trading in April was significantly impacted Covid-19 related business closures and reduced activity levels.
Revenue for April and May fell 26 per cent on-year, however, the group remained profitable in both months.
The group mainly manufactures products for the construction industry.
It includes its namesake motorway barriers factory at Bilston, Halesowen-based galvanising firm Joseph Ash, which also has sites in Telford, Walsall and Bilston, and Oldbury-based street lighting firm Signature.
During the period the company took a number of measures to manage costs and conserve operational cash flows without impacting its longer-term growth prospects.
The group also made use of government employee furlough schemes in the UK and France to help preserve jobs.
Chief executive Derek Muir said: "Our decentralised model, with agile leaders close to their local markets, has enabled Hill & Smith to respond swiftly to Covid-19 developments as they have unfolded over recent months.
"Looking forward, we believe the group is well positioned to benefit from likely government stimulus in our major markets, as well as targeted new business opportunities underpinned by our strong financial position."
On its outlook the company added: "Given the ongoing uncertainty caused by Covid-19, it is still too early to predict the duration or the severity of the economic disruption.
"We would, however, note that the group's FY20 trading performance is likely to be second half weighted.
"We have confidence in our strategy of growing market leading businesses in niche infrastructure markets, supported by a strong balance sheet.
"As a result, the group remains well positioned to benefit from market opportunities as they arise."
