Hill & Smith PLC on Wednesday said it expects to outperform market consensus on underlying operating profit in 2023 amid an expected boost from the US, as it posted interim profit growth.

The Solihull, West Midlands-based infrastructure construction company said in the first half of 2023, pretax profit jumped 42% to £57.2 million from £40.2 million a year prior.

Revenue rose 20% to £420.8 million from £349.9 million, which the company said was driven by US growth.

Hill & Smith said that lower building product volumes in the UK were offset by price and cost efficiency. In the US, it hailed its Composite business which it said delivered ‘record results’.

The company declared an interim dividend of 15.0 pence per share, up 15% from 13.0p.

Looking ahead, the company expects a boost from US industrial growth drivers, with 2023 underlying operating profit expected to be modestly ahead of the current market consensus of £111.8 million, with range of £110.2 million to £112.8 million. The consensus would be 15% higher than £97.1 million in 2022.

Hill & Smith shares rose 7.3% to 1,684.00 pence each on Wednesday morning in London.

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