Hill & Smith Share Discussion Threads

[wirralowl] 18/3/2003 08:49

Wow ! Great set of results on first view !
Profits up, EPS up to 11.79, Divi up (+6% after today's rise), gearing down, positive outlook. What more could you ask for ?

Summary below :

RNS Number:8399I
Hill & Smith Hldgs PLC
18 March 2003

Embargoed Until

7.00 am on Tuesday 18 March 2003



HILL & SMITH HOLDINGS PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED

31 DECEMBER 2002

HIGHER PROFITS AND DIVIDENDS,

REDUCED BORROWINGS



Hill & Smith Holdings PLC ('Hill & Smith' or 'the Group') has announced
substantially increased profits, a higher dividend and a significant reduction
in Group borrowings.

The Group has reported that profit before taxation increased to #6.5m compared
with the previous year's #1.6m, calculated on an annualised pro rata basis from
the prior 15 month period. On a similar basis, Group turnover increased by 10.0
per cent to #212.7m.

Operating profit before exceptional items and goodwill amortisation rose by 11.6
per cent to #14.0m compared with the prior period annualised equivalent of
#12.6m.

The Board is recommending a final dividend of 2.4p a share, which means that the
total dividends for the year will have effectively risen on an annualised basis
by 3.2 per cent to 4.5p.

Earnings per share before exceptional items and goodwill amortisation rose to
11.79p, an increase of 22.7 per cent compared with the previous period's
annualised figure.

Highlights

Year Ended 31 Pro rata Year Ended 31 15 Months Ended 31
December 2002 December 2001 December 2001

Turnover #212.7m #193.5m #241.8m
Operating profit + #14.0m #12.6m #15.7m
Profit before taxation + #10.0m #8.1m #10.1m
Profit before taxation + #6.5m #1.59m #1.99m
Earnings per share + 11.79p 9.61p 12.01p
Dividends 4.50p 4.36p 5.45p
Net borrowings #44.9m #52.1m #52.1m

+ before exceptional items and goodwill amortisation
+ FRS3

The previous accounting period was one of 15 months ended 31 December 2001, as a
result of the change during that period to a 31 December financial year end.
Comparative figures above are stated both for the 15 month prior period and an
annualised pro rata equivalent of 12 months.

Hill & Smith's Chairman, David Winterbottom, said: "We have delivered improved
profits on increased sales as we continued to see success from our strategy of
developing our building and construction businesses through organic growth and
selective acquisitions. Operating margins in these businesses showed encouraging
growth in the year.

We have effectively increased the dividend again this year and dividend cover
has improved further to 2.6 times. Gearing has also reduced substantially,
leading to a corresponding reduction in interest costs.

We are continuing to benefit from growing demand in infrastructure and
construction markets, particularly as a result of the increased public
expenditure.

All the indications are that this market will continue to grow and our
investment and acquisitions will help us to take advantage of opportunities in
this sector.

The current trading period has started in line with our expectations and if
market conditions remain stable I look forward to another satisfactory
performance this year."



For further information :

Hill & Smith Holdings PLC:
David Grove (Chief Executive) Tel 0121 704 7430
Mobile 07973 325 667

Quantum PR plc:
Edward Carter Tel: 0121 633 7775
Mobile 07770 378097


Chairman's Statement

General

I am pleased to report another year of solid progress in 2002. Turnover at
#212.7m was 10.0% ahead of the previous twelve months (annualised pro rata for
the fifteen month accounting period to December 2001). More importantly,
operating profit before exceptional items and goodwill amortisation rose to
#14.0m representing an annualised year on year improvement of 11.6%. There was
also a substantial 24.2% improvement in profit before exceptional items,
goodwill amortisation and tax to #10.0m against the annualised figure for the
fifteen month period to December 2001. The reduction in debt levels over the
last two years resulted in interest charges of #4.0m compared with #4.5m
annualised for the twelve month period to December 2001.

Adjusted earnings per share of 11.79p for the year (9.61p annualised for the
fifteen months to December 2001) represent an improvement of 22.7% year on year.

Borrowings at December 2002 were #44.9m, representing a #7.2m reduction during
the year. This has been achieved against the background of a continued programme
of capital investment, mainly targeted at our core growth businesses. Also, two
significant acquisitions were made by the Infrastructure Products Group during
the year, namely Mallatite Limited and the trade and assets of Brifen Limited.

The Group's stated strategy remains focussed on investing both organically and
by selective acquisitions into the building and construction sectors and
divesting itself of non-core activities wherever possible, details of which are
given in the Operating and Financial Reviews.

Dividends

The Board is recommending an increase in our dividend payments with a final
dividend of 2.4p, making a total for the year of 4.5p (2001: 5.45p for fifteen
months), compared to an annualised figure of 4.36p in the previous period.

Progress

Since the Board changes in 1998 substantial progress has been made in terms of
shareholder value. Adjusted earnings per share have increased by 240.8% to
11.79p (1998: 3.46p). Dividends, which were held at 4.2p between 1997 and 2000
because of the lack of dividend cover, were increased by 3.8% in 2001 and 3.2%
in 2002. Dividend cover has improved each year since 1998 when it was uncovered
by earnings, so that in 2002 the dividend is covered 2.6 times.

Employees

I would like to thank all our employees for their support and efforts during
2002. As I have said before, they are indeed our most valuable asset.

Outlook

We are continuing to benefit from growing demand in the infrastructure and
construction markets, particularly as a result of the increased public
expenditure. The current trading period has started in line with our
expectations and if market conditions remain stable I look forward to another
satisfactory performance this year.



David Winterbottom

Chairman

18 March 2003

[shuisky] 27/2/2003 19:26

Any thoughts out there on HIls? I like this stock but it's been plummeting recently, even with the recent disposal.

[wirralowl] 13/1/2003 09:42

Waiting patiently to top up on these - current PE of 7 dividend of 6.75%, profit-making and excellent growth prospects. Also, fall has taken place on low volumes.

[oldolie] 10/12/2002 10:38

I`m in @92,

[oldolie] 10/12/2002 10:24

and a bit more

[oldolie] 10/12/2002 08:02

is this the start?
Up a bit

[hv] 09/12/2002 19:54

Could be very posible Oldolie as they are very undervalued at present prices.
Given the profile of the large shareholders at present I think would gladly agree at something like £ 1.50 like the rest of us and even at that price the Company is a bargain for the buyer. So no worries on this one bid or no bid.

[oldolie] 06/12/2002 20:48

glad you agree hv, should we help him to retire - sell the co. for -oh,
£1.50 a share- lets encourage him

good luck

[hv] 06/12/2002 17:16

Oldolie,

You could be so right with this one. Doing all the right things. Profits in current year could easily top £ 12m .Cap still around £ 60m . So a lot to go for. If a bid is in the offing could easily be for £ 1.30 and the buyer would still have a bargain.

A bargain at these levels.

[oldolie] 06/12/2002 17:00

worth a look if any vol. happens soon , the CEO is not too keen on working a lot longer rumour is --a sell out?
Watch this space

[vs] 06/12/2002 00:16

HILS have just set a new all-time-high today...

[diogenesj] 05/12/2002 17:52

Nice rise, and no reason why it shouldn't continue. The shares are still cheap, and Hill & Smith supply all the things Gordon wants to spend our money on: crash barriers, lamp posts and the like.

[hv] 05/12/2002 16:40

All looking very very promising a pound very very soon .

[hv] 18/11/2002 08:24

All aboard now . See these crossing a £ very quickly and even at that still very good value.

[hv] 17/11/2002 09:39

Iglet,

Thank you for your posting. Read the article as well. Looks very good for a rerating. Fill your boots.

[iglet] 16/11/2002 21:41

Written up today in "weekend share watch" in the FT.
Extract:
"H&S in August bought Mallatite, the Uk's largest lamppost and traffic pole supplier. This may prove a shrewd move, for research has shown that about two thirds of the UK's street lights will need to be replaced over the next 10 years. Recent contract wins also include a three-year joint-venture with Laing O'Rourke worth £40m to supply all the reinforcing bars for the Terminal 5 project at Heathrow."

Ends: "Attractive, given the 6% yield"

[hv] 08/11/2002 15:36

Good performance this week and will be going higher next. One to buy and hold.
ROCK SOLID .

[hv] 22/10/2002 16:21

Set to post a very strong set of full year figures. EPS could be 12p and growing. Debt will be further reduced.

Am very bullish on these as feel management are very shrewd and expenses
firmly under control.Just look at Directors remuneration not FAT CATS by
any means.

In the right sector at the right time and additing on acquisitions to obtain
synergy.

Think they will cross £ 1 in the next twelve months. Very good didvi at present levels as well at around 4.5-5p.

Worth buying on a 2 year view as borrowings will be well down and shares could be rerated.

[pojscott] 09/10/2002 16:38

showing a small profit on these- anyone any up to date news or views.

[washbrook] 29/8/2002 13:09

ASH & LACY:12.09.00 :after the market closes, the boards of Hill & Smith and Ash & Lacy announce the terms of a recommended offer for the whole of the issued and to be issued ordinary share capital of Ash & Lacy to be made by Old Mutual Securities on behalf of Hill & Smith, valuing the current issued ordinary share capital of Ash & Lacy at approximately £69.59m. The offer values each Ash & Lacy share at 190.5p and will be made on the basis of 153p in cash and 0.6 new Hill & Smith shares for every Ash & Lacy share. A full cash alternative of 186p in cash per Ash & Lacy share will also be made available to Ash & Lacy shareholders. There will also be a Guaranteed loan note alternative available to Ash & Lacy shareholders in respect of the cash element of 153p of the basic offer. In addition, there will be an additional share election under which Ash & Lacy shareholders may elect to receive additional New Hill & Smith shares in lieu of cash (subject to availability). The maximum aggregate number of new Hill & Smith shares, totalling up to 23,174,031, to be issued under the offer will not be varied as a result of the additional share election. The basic offer represents a premium of approximately 40.1% over the closing middle market price of 136p per Ash & Lacy share on 25 July 2000 (the last business day prior to the announcement by Ash & Lacy that it was in discussions which may or may not lead to an offer being made for Ash & Lacy). Hill & Smith has received irrevocable undertakings (including those from the directors of Ash & Lacy) and a letter of intention to accept the offer in respect of a combined total of 18,780,846 Ash & Lacy shares (51.41%). The Hill & Smith Concert Party currently owns 1,689,740 Ash & Lacy shares (4.63%) of which 1,689,000 Ash & Lacy Shares (4.62%) are the subject of irrevocable undertakings referred to above. Together with the irrevocables and letter of intention set out above, Hill & Smith is therefore interested in 18,781,586 Ash & Lacy shares (51.42%). The board of Hill & Smith expects the acquisition of Ash & Lacy to enhance earnings per share adjusted for the effects of exceptional items and goodwill amortisation in the first full financial year of ownership. Chairman said: "The stock market ratings for small companies have been depressed for some time. A number of our major institutional shareholders have recently made known their desire to realise their investments in Ash & Lacy despite the profit record and future prospects. Against this background the board considers that it is unlikely that Ash & Lacy's share price will rise to 190.5p in the near future. Under the circumstances the offer enables shareholders to realise their holdings at a fair valuation while also creating a larger combined business."

[washbrook] 29/8/2002 13:05

minuteman: info you require
Dates on left, closing price of that date.
read from bottom of my post

15.07.02 :-1, (68) announces that via its subsidiary Hill & Smith Limited, it has completed the acquisition of the business and certain assets of Brifen for a cash consideration of £1.4m. Based on its unaudited accounts, Brifen made an operating profit of £0.5m in the year ended 31 December 2001 on sales of £7.4m and had net assets of £0.5m. Brifen, based at Mansfield, manufactures and supplies wire rope safety fence and traditional crash barrier systems for both domestic and export markets. Hill & Smith Chief Executive, David Grove, said the acquisition will expand his company's product range in the highways infrastructure market. Grove said he thinks highways infrastructure will be the target of increased government expenditure over the next few years. The Chief Executive said: "This product is an ideal fit alongside our traditional crash barrier products and will also provide opportunities for growth in our export markets."
26.03.02 :+6.5, (80.5) after H2 (15 mths) profits 1.985m (4.352m) - dividend 1.25p total 5.45p (4.2p). Chairman said: "Following the takeover of Ash & Lacy and the change of year end to December, I am pleased to report further progress made by the group in the fifteen month period ending 31 December 2001. A number of actions were taken during the period to realise the benefits of the Ash & Lacy takeover. These actions included the closure of the Ash & Lacy head office, closure of operating sites, property disposals and other rationalisation measures. As a consequence of the financing of the takeover of Ash & Lacy the group's net debt peaked at approximately £78.0m and I am pleased to report that by 31 December this had been reduced to £52.1m which represents gearing of 152%. During the financial period we continued to invest in modern equipment and new products, particularly in our companies supplying the robust infrastructure market in the UK. We continue to seek out opportunities which will further enhance the value of the group... Trading conditions continue to be mixed in the various markets the company supplies. Whereas volumes and margins have generally fallen in its commodity-based businesses, demand is increasing in many of its larger businesses, which are benefiting from increased infrastructure and construction spending in the UK. The current trading period has started in line with company expectations and if market conditions remain stable the company looks forward to another satisfactory performance this year."
18.12.01 :+2.5, (66.5) after H2 profits 3.291m (4.352m) - dividend 2.1p total 4.2p (4.2p). Chairman said: "Results: Sales for the twelve month period were £194.4m (2000: £58.9m). Profit before exceptional items and goodwill amortisation was £8.5m (2000: £4.1m). Acquisition of Ash & Lacy: This acquisition was completed on 1 November 2000 and the results of the Ash and Lacy companies have been consolidated from that date. In order to realise the benefits of the takeover a number of closures, rationalisation measures and divestments have been implemented, affecting both continuing operations as well as the acquired companies, resulting in net exceptional costs of £3.9m. The board report that this acquisition has been integrated into the Group successfully and the benefits of this major strategic move are being realised. Operations: During the period capital expenditure approaching £2.0m was absorbed by the Infrastructure Products Group. This included a new powder coat paint facility for their palisade fencing business and further expansion of the temporary barrier hire fleet. As a result of the above, trading profits were significantly ahead of last year. There has been some rationalisation of our galvanising activities following the Ash & Lacy takeover which has resulted in the closure of two locations. This market has seen some growth during the year and their major sites have benefited from this increased level of demand. The remaining businesses in the Building and Construction Products Division have seen mixed performances and profit margins have seen some erosion due to competitive pressures, particularly in the lintel and building products areas. In the Industrial Products Division Ash and Lacy Perforators has responded well to increased demands in the computer market. However the commodity based businesses such as stockholding have been trading against deteriorating conditions and falling prices. Gearing and Cash Flow: On 30 September 2001 net borrowings had been reduced to £55.7m, from the £78.0m immediately following the acquisition of Ash & Lacy. This represents a reduction in gearing to the present level of 153% (198% at 31 March 2001). The net cash flow from operating activities before exceptional items was £19.0m for the period, of which £3.1m has been generated from the stock reduction programme across the Group... The company are now approaching the end of the final quarter of the current financial period and except for the seasonal difficulties expected in a short December the majority of their businesses, in the context of current market conditions for their sector, are trading at satisfactory levels."
07.08.01 :+0, (64) exchanges contracts for the sale of two sites, one at Newport and one at Netherton for £557,000. The proceeds will be used to reduce net borrowings of Hill & Smith.
15.06.01 :+0, (70) in a review of the recent results, IC say (at 70p): "Hill & Smith stands to gain from John Prescott's pledge to spend £100bn on roads over the next 10 years. Nevertheless, the shares are unlikely to outperform in the current climate. Fairly priced."
06.06.01 :+3, (74.5) after H1 loss 1.588m (+2.118m) - dividend 2.1p (2.1p). Highlights: Debt reduction programme ahead of schedule; Healthy increase in operating cash flow; Successful integration of Ash & Lacy businesses... Chairman said: "The integration of the Ash & Lacy companies into the group has been achieved ahead of expectations and the board reports that the post acquisition due diligence review has revealed no surprises in respect of the trading activities, although it has taken a prudent view of the fixed assets acquired. The recent investments (both organic and acquisitions) in the Infrastructure Products Group continue to yield increasing returns and the market trends reflecting increased government spending are very positive for the largest division. A number of capital investment projects were successfully completed in the period which will benefit future performance. The acquisition of the galvanising activities within Ash & Lacy has resulted in a rationalisation of the group's galvanising capacity. Two plants have been closed, thus eliminating duplication of facilities in the West Midlands and South Wales. The remaining businesses in the construction and building products division continue to operate against a background of challenging market conditions. In the industrial products division the individual performances have been mixed. Ash & Lacy Perforators has invested in additional capacity to meet the demands of its major customers. On the other hand, the stockholding businesses have suffered from poor market conditions during the period. In general terms market conditions remain tough. The net cash flow from operating activities during the period before exceptional items was £11.4m (2000: (£0.3)m) which included a net reduction of £2.1m in working capital. Gearing: At 31 March 2001 the level of net borrowings had been reduced to £66.8m from a peak level of £78.0m immediately following the Ash & Lacy acquisition. This represents gearing of 198%. Furthermore, on 25 May 2001 four group properties were sold under a sale and leaseback arrangement for a gross sum of £8.9m. This transaction has resulted in a reduction in the net indebtedness to below £60m... The businesses have commenced the second half of the year with market conditions varying across the group. Additional sales of surplus properties are likely in the rest of 2001, thus making further inroads into the level of debt, which is being managed well ahead of expectations. Overall it believes that the outcome for the full 15 months will be satisfactory, given no deterioration in economic conditions."
04.06.01 :+0, (70) sells Lygon Court in Halesowen to New World Securities for a cash consideration of £1.06m. The site was previously producing annual rental income of £0.12m. The consideration will be used to reduce net borrowings of Hill & Smith.
29.05.01 :+1.5, (67) agrees with Lakelarge ("Lakelarge") the sale and leaseback of four Hill & Smith sites, Telford, Walsall, Smethwick and West Bromwich. Total consideration for the sale of the four properties to Lakelarge is £8.96m, payable in cash on completion. Hill & Smith has agreed to take a 20 year lease from Lakelarge on these sites at an annual rental of £0.93 million. The consideration will be used to reduce net borrowings of Hill & Smith. Following the takeover of Ash & Lacy in November 2000, net debt peaked at £78m. When the cash is received in respect of the property sales outlined above, the net debt position will fall to £60m. The aggregate net book value, as at 31 December 2000, of the properties sold was £6.95m.
10.04.01 :+0.5, (61.5) sells the business and stock of Clews Brothers, a wholly owned subsidiary of Hill & Smith, to Clews Tipco, a subsidiary of Tipco, which is incorporated in Ontario, Canada. Completion took place on 4 April 2001. The consideration, payable to Hill & Smith in cash on completion, was £285,000. After the collection of debts and payment of creditors, the cash released to Hill & Smith will be around £380,000, which approximates to the net asset value of Clews Brothers. In the year to 31 December 2000, Clews Brothers made a loss before interest and taxation of £73,000. Redundancy costs will be minimal, as 10 of the 11 staff currently employed at Clews Brothers will be employed by the new owner of the business, Clews Tipco.
05.03.01 :+6.5, (76.5) the Mail on Sunday say buy. The paper reckons the company boosted its product range last year with the £70m takeover of Ash & Lacy, its larger rival. The shares at 70p value the company at £42m and trade at just 7 times forecast earnings. Net assets per share are 60p and there are still opportunities to be taken from the Ash deal.
26.01.01 :-0.5, (69.5) in a review of the recent results, IC say (at 72p): "The acquisition of Ash & Lacy has stretched Hill & Smith's balance sheet to the limit. Until the debt is paid down and the benefits start coming through investors should treat the shares with caution. High enough."
23.01.01 :+0, (71.5) announces that, in line with its strategy of reducing debt by disposal of investment and other properties, it has contracted for the sale and leaseback of the site at Telford occupied by Eurogrid and Access Design and Engineering. Completion is set for tomorrow. The sale and leaseback has been entered into with Brentside Investments. The net book value of the property was £2.6m at 31 December 2000 and it will be sold for £2.8m after allowing for costs. The lease is for a term of 20 years at an initial rent of £242,000, which will be subject to 5 yearly reviews, representing an annual yield of 8.6%. This follows the sale in December 2000 of the Streetly investment property for £1.6m. The debt of the group will be reduced by £4.4m as a result of these two transactions.
23.01.01 :+0, (71.5) after H2 profits 4.35m (3.56m) - dividend 2.1p total 4.2p (4.2p). Chairman said: "Gearing at 18.6% (1999: 19.2%) improved slightly against the previous year, reflecting tight control, offset by increased cost of holding raw materials, and infill acquisitions made during the year. Board Structure and Employees: Following the acquisition of Ash & Lacy, Howard Marshall joined the board as a non-executive director. He was previously chief executive of Ash & Lacy. Additionally, Chris Burr joined the board as group finance director, he was previously finance director of Ash & Lacy. Howard Everett moves to take the role of executive director and company secretary.... Conditions continue to be difficult in its sector but, as long as there is no further adverse change in economic conditions, the company looks forward to a satisfactory outcome to the current trading period, which has started in line with expectations. As Ash & Lacy had a different year end to the company, the decision was taken to change Hill & Smith Holdings' year end to 31 December. This will give a 15 month period for the enlarged group, which will only include Ash & Lacy companies from the date of acquisition (1 November 2000) to 31 December 2001."
23.10.00 :+5, (56.5) the Sunday Telegraph say buy. The paper reckons the company is expected to announce, within the next few days, the irrevocable acceptances from institutional shareholders in Ash & Lacey putting the acquisition firmly in the bag. The shares trade well below the net asset value of the combined entity.
11.09.00 :+0.5, (60) an article in the Sunday Telegraph suggests Ash & Lacy will announce next week that it has agreed a 70 mln stg takeover bid from its smaller rival Hill & Smith Holding. Ash & Lacy has been the subject of a hostile bid battle between Hill & Smith, which has a market value of 23 mln stg, and Metnor Group, which has a capitalisation of 33 mln stg. Metnor is believed to have made the higher offer, a mixture of cash and shares that would have valued Ash & Lacy at about 80 mln stg. However, institutions are thought to have been less keen to take Metnor's shares and prefered Hill & Smith's lower offer with a higher proportion of cash.
12.09.00 :after the market closes, the boards of Hill & Smith and Ash & Lacy announce the terms of a recommended offer for the whole of the issued and to be issued ordinary share capital of Ash & Lacy to be made by Old Mutual Securities on behalf of Hill & Smith, valuing the current issued ordinary share capital of Ash & Lacy at approximately £69.59m. The offer values each Ash & Lacy share at 190.5p and will be made on the basis of 153p in cash and 0.6 new Hill & Smith shares for every Ash & Lacy share. A full cash alternative of 186p in cash per Ash & Lacy share will also be made available to Ash & Lacy shareholders. There will also be a Guaranteed loan note alternative available to Ash & Lacy shareholders in respect of the cash element of 153p of the basic offer. In addition, there will be an additional share election under which Ash & Lacy shareholders may elect to receive additional New Hill & Smith shares in lieu of cash (subject to availability). The maximum aggregate number of new Hill & Smith shares, totalling up to 23,174,031, to be issued under the offer will not be varied as a result of the additional share election. The basic offer represents a premium of approximately 40.1% over the closing middle market price of 136p per Ash & Lacy share on 25 July 2000 (the last business day prior to the announcement by Ash & Lacy that it was in discussions which may or may not lead to an offer being made for Ash & Lacy). Hill & Smith has received irrevocable undertakings (including those from the directors of Ash & Lacy) and a letter of intention to accept the offer in respect of a combined total of 18,780,846 Ash & Lacy shares (51.41%). The Hill & Smith Concert Party currently owns 1,689,740 Ash & Lacy shares (4.63%) of which 1,689,000 Ash & Lacy Shares (4.62%) are the subject of irrevocable undertakings referred to above. Together with the irrevocables and letter of intention set out above, Hill & Smith is therefore interested in 18,781,586 Ash & Lacy shares (51.42%). The board of Hill & Smith expects the acquisition of Ash & Lacy to enhance earnings per share adjusted for the effects of exceptional items and goodwill amortisation in the first full financial year of ownership.
27.07.00 :-1.5, (55) in the light of today's press speculation the board of Hill & Smith Holdings confirm that they are in discussions with the board of Ash & Lacy concerning a proposal which may or may not lead to an offer for the entire issued share capital of Ash & Lacy. The proposal under discussion involves a potential offer at or around the current share price. This potential offer would comprise principally cash with the balance to be satisfied in new Hill & Smith Holdings Ordinary shares. Under the Board's proposal there would be an underwritten mix and match facility which would enable those shareholders who choose to do so to elect to receive consideration for their shares entirely in cash.
20.06.00 :+3.5, (55) after H1 profits 2.12m (1.13m) - dividend 2.1p (2.1). Chairman said: "Operations: Significant efforts have been put into developing Pipe Supports as a global business, during the last year. Its overseas operations in the USA and Thailand are both developing successfully and are ahead of expectations. The UK operation is, however, being down-sized as a result of lower volumes, which are affected by the strength of sterling. We are continuing to review the costs of manufacturing throughout the Group and capital spend in this area will be significantly higher in the current financial year. This increased spend will not benefit our profits until next year. Gearing: Cash flow remains strong but deliberate decisions were taken to increase stocks, particularly of steel which was purchased at low prices in a rising market. Debtors rose but this was largely a comparative position, reflecting increased trading levels in the latter part of the half year. Gearing at 22.2% (1999: 22.1%) remains comfortable but is kept under constant tight review. We remain in a strong position to develop the Group further, through selective acquisitions to provide either new products or to increase the market penetration of our traditional products. During the half year, we invested in Pipe Supports Asia, which is now an 80% owned subsidiary... The second half of the year has started in line with the board's expectations. Whilst sterling remains strong against European currencies, business will be tough. Given no adverse movements in economic conditions, I am confident that we will be able to report further progress at the full year end."
06.06.00 :+0, (52.5) announces the acquisition of two operations. The first consists of the highway parapets division of Baco Contracts, itself a division of British Aluminium Limited. The cost of intellectual property and assets purchased, together with goodwill, was £404,000. This operation, which designs, manufactures and installs aluminium parapets for the UK and worldwide markets, consolidates the position of Varley & Gulliver, a wholly owned subsidiary of Hill & Smith, in the worldwide parapet market. The second acquisition was for the total share capital of Dundec Barrier Systems Limited. The cost of the acquisition will lie between £200,000 and £410,000, dependant upon completion accounts and order book received. Dundec Barrier Systems Limited installs car park barrier and owns a proprietary system called "Optimum". The group has funded both these acquisitions from internal resources.
30.11.99 :+1, (71) after H2 profits 3.56m (-1.57) - dividend 2.1p total 4.2p (4.2). Chairman said: "The board has continued to concentrate on cash management within the Group, operating cash flow per share was 22.47p, an increase on last year's 19.49p, and we achieved net borrowings of £4.43m at the year end (1998: £11.26m. This was after expending £3m to acquire Berry Safety Systems Limited. The major reorganisation of the group's businesses is now completed and the board is concentrating on organic growth and the introduction of new products. Additionally, we continue to look for appropriate acquisitions in line with our core strategy. Our systems have been checked and cleared for Year 2000 compatibility, although our operations are not highly microprocessor dependent.... Conditions continue to be difficult for the engineering sector. However, given the usual caveat about no further adverse change in economic conditions, I look forward to a satisfactory outcome to the current trading year."
08.06.99 :-1, (67.5) after H1 profits 1.13m (1.79m) - dividend 2.1p (2.1). Chairman said: "The increased emphasis on cash management across the group has resulted in operating cash flow per share of 12.44p (1998: 8.98p) for the period. As a result of the healthy cash flow and a sale and leaseback transaction, net borrowings have been reduced to £5.2m at 31 March 1999 compared with £15m at March 1998 and £11.3m at September 1998. Gearing is now only 22.1%. Having now completed a major part of our disposal programme, we intend to expand and develop our core businesses where we have good market positions. This will take the form of organic expansion through the introduction of new products, together with selective acquisitions... The second half of the year has started in line with board expectations. I look forward to reporting further progress at the full year, given no adverse movements in economic conditions."
01.06.99 :+2, (67.5) sells Tipton Steel Stockholders and three additional steel plate stockholding businesses, which the group acquired earlier in the day, to an MBO team for a total consideration of £1.165m. TSS will also repay intra-group loans of £332,000 and the property of TSS will be retained by Hill & Smith and sold separately. The group purchased Steelply Stockholding, Mill Steels (Southern) and Mill Steels Cradley for a total cash consideration, equal to the value of their net assets of £625,000.
13.05.99 :+6, (72.5) reports the sale of its two drop forging units, British & Midland Forgings and Criterion Stampings, to Brockhouse Forgings for £2.5m cash. H&S has also bought Berry Systems, the manufacturer and installer of special- ised safety barrier products, for £3.0m. The company subscribed for a minority holding in Brockhouse Forgings, as part of the deal, it said. Proceeds from the disposals will pay in part for the acquisition of Berry Systems, which will be merged with Hill & Smith, the group's subsidiary.
07.05.99 :+6, (61.5) IC say buy (52.5) - a new boss is shaking up the steel and plastic products group. He has cut gearing, employee costs and stocks. Rising demand for motorway sign gantries and bridge parapets is set to fuel Hill's drive into the UK galvanising market. On a forward PE ratio of 8 and dividend yield of 8%, the shares cannot remain unnoticed for long.
12.04.99 :+0, (46) announces that David Grove has been appointed group chief executive with immediate effect. Grove was appointed acting chief executive in June 1998, after joining the board in March 1998 to spearhead a strategic review of the group's operations.
15.02.99 :+0.5, (49) after a Sunday Telegraph buy recommendation. It reckons the engineering group is beginning to see its new growth strategy bear fruit and could be"worth a punt for the brave".
25.01.99 :-0.5, (49.5) reports that the company's performance since November 1998 is encouraging. The board expects to recommend the payment of a final dividend of 3.2p per share in respect of the year ending 31 March 1999. Hill Hire also said it is placing 1,426,660 new ordinary shares at 130p per share with institutional and other investors to raise approximately £1.8m net of expenses. The proceeds of the placing will be used to continue the organic expansion of the company.
t.

[huttonr] 29/8/2002 11:12

I suggest that you get a copy of the annual report, which covers some of the events related to the takeover of Ash & Lacy. This effectively trebled the size of the company and has turned it into a geared play on the government's plan to invest large amounts of money in the road and rail networks. In my opinion, there is a substantial risk involved with planning delays, the government's plan actually turning into reality and the amount of debt currently on the balance sheet. However, I have put some money into these shares as I think that the risk level is acceptable.

[minuteman] 29/8/2002 08:01

Big increase in assets, debtors, & creditors last year with these, and they have been on the aquisition trail.

My question, as they looked a rather sorry outfit some years ago, have they done a right issue or some other sort of financing recently??

Just need to get more infor, other than whats on ADVFN, so if you have any leads, post away

regards
M