Hill & Smith Holdings PLC (LSE:HILS) shares jumped 13% after the infrastructure products group unveiled record half-year results, a 9% dividend increase, and a £100 million share buyback.
Revenue rose 4% on a constant currency basis to £431.6 million, driven by strong demand in its US Engineered Solutions and Galvanising Services divisions.
Underlying operating profit climbed 11% to £73.5 million, lifting margins by 80 basis points to 17%. The US business reported record order books, offsetting softer UK road infrastructure activity.
Cash generation was robust, with leverage almost negligible at 0.1 times, giving the group “significant financial firepower” for acquisitions and shareholder returns. Two small loss-making units were sold, while bolt-on M&A remains a focus.
Chief executive Rutger Helbing reiterated full-year guidance and said Hill & Smith is “well positioned” to capture long-term growth in infrastructure and built environment markets. The interim dividend rises to 18p a share.
Peel Hunt said: "This is very typical Hill & Smith - robust, solid, premium growth and proactive capital allocation."
The broker says 'buy' up to 2.650p. The shares were up 252p at 2,220p.