19 December 2013
Hill & Smith Holdings PLC
Telford Closure
Hill & Smith Holdings PLC, the international group with leading positions in the supply of infrastructure products and galvanizing services, reports that its Redman Fisher Engineering Limited subsidiary has announced its intention to close its Telford operation, trading as Access Design and Engineering ("Access Design"), and transfer all production and manufacturing activity to a sister site in Middlesbrough.
As previously reported, Access Design, which manufactures and installs secondary steelwork, industrial flooring and handrails to AMP5 projects, was downsized earlier in the year to reduce its exposure to the challenging and highly competitive contracting arena. The challenging market conditions facing this particular area of our business have not abated during 2013 and the relocation of the business to the successful Middlesbrough site will significantly reduce overhead and provide a foundation for its future profitable growth within the UK market.
The Group expects to book a one off non-underlying charge of circa £4.9m in its 2013 financial statements, of which £1.2m is non cash related. The impact of the restructuring is expected to be marginally earnings enhancing in 2014.
The Board previously reported the disposal of land and buildings at its former Joseph Ash site in London for cash proceeds of £2.5m, which it can now confirm produced a gain on disposal of £1.7m which will be recorded as a non-underlying item in the 2013 financial statements.
Derek Muir, Group Chief Executive, commented: "These actions, whilst not taken lightly, further demonstrate Hill & Smith's commitment to its stated strategy of active portfolio management in furtherance of improving return on sales, return on invested capital and shareholder value."
Note: The statement regarding earnings enhancement does not constitute a profit forecast nor should it be taken to mean that the earnings per share of Hill & Smith in the year ending 31 December 2013 or in future years will necessarily match or exceed the Group's historical earnings per share.
ENDS
For further information, please contact:
Derek Muir, Group Chief Executive Tel: +44 (0) 121 704 7430
Hill & Smith Holdings PLC
John Olsen/Barnaby Fry Tel: +44 (0) 203 128 8100
MHP Communications
Notes to Editors
Hill & Smith Holdings PLC is an international group with leading positions in the design, manufacture and supply of infrastructure products and galvanizing services to global markets. It serves its customers from facilities principally in the UK, France, USA, Thailand, Sweden, India and Australia.
The Group's operations are organised into three main business segments:
Infrastructure Products - Utilities, supplying products and services such as pipe supports for the power and liquid natural gas markets, energy grid components, "GRP" railway platforms, plastic drainage pipes, industrial flooring, handrails, access covers and security fencing.
Infrastructure Products - Roads, supplying products and services such as permanent and temporary road safety barriers, street lighting columns, bridge parapets, gantries, temporary car parks, variable road messaging solutions and traffic data collection systems.
Galvanizing Services which provides zinc and other coatings for a wide range of products including fencing, lighting columns, structural steel work, bridges, agricultural and other products for the infrastructure and construction markets.
Headquartered in the UK and quoted on the London Stock Exchange (LSE: HILS.L), Hill & Smith Holdings PLC employs some 3,500 staff across 50 sites.
