Shares digital

Hill & Smith (HILS) – Finals PTP £32.9m (£18.5m) Divi: 8.7p (7.2p)

Record revenue and profits were flattered by the consolidation of Zinkinvent but earnings are still up an impressive 34% helped by higher margins. Overseas profits will rise sharply as galvanizing company Zinkinvent is now 68% owned.

UK business is strong due to a rise in temporary barriers for road widening schemes plus associated work such as lighting and signage. The pipe supports arm is booming due to new LNG infrastructure projects worldwide.

Another growth area is railway station platforms where H & S extends existing ones with lightweight but strong plastic structures. The company says 67% of revenues are in growth markets and is confident that new products, acquisitions and markets will continue to lift profits.

Shares says: The shares have been dragged down by weakness in construction sector but have rallied strongly on these results. Hill & Smith will not be able to escape UK slowdown but on a prospective of 11 this is already in the price.

SPECULATIVE BUY

by: Timon Day