Hill & Smith PLC - Solihull, West Midlands-based provider of infrastructure products - Buys Trident Industries LLC for up to $46.0 million in cash, including an initial payment of $13.5 million and deferred cash of up to $32.5 million based on Trident’s revenue over the next five years. Trident is based in the US state of Illinois, and the existing management team will remain in place. It is a designer and supplier of composite utility poles, serving utilities in North America and the Caribbean. In 2023, Trident reported adjusted earnings of $5.7 million on $23.3 million in revenue. ‘Trident is a business we have known and worked with for many years and is an excellent fit with our existing US composites business,’ says Hill & Smith Executive Chair Alan Giddins.
Hill & Smith also reports half-year results. Pretax profit is £57.8 million in the six months that ended June 20, up 20% from £48.2 million a year before, as revenue edges up 0.4% to £422.7 million from £420.8 million. The company declares a 16.5 pence dividend, up 10% from 15.0p a year before. Looking ahead to all of 2024, Hill & Smith says operating profit will be in line with recently upgraded market consensus of £137.4 million. This would be up 12% from £122.5 million in 2023.
Current stock price: 2,110.00p, down 2.3% in London on Thursday
12-month change: up 34%
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