Hill & Smith Posts Robust H1 Results; Reaffirms FY Guidance

(RTTNews) - Hill & Smith PLC (HILS.L), on Wednesday, reported strong half-year results for the six months ended 30 June 2025.

Revenue rose to GBP431.6 million, up 2% from GBP422.7 million in the same period last year, with constant currency growth of 4%. Underlying operating profit increased by 7% to GBP73.5 million, while statutory operating profit reached GBP68.0 million, an 8% improvement year-over-year. The Group's operating margin expanded by 80 basis points to 17.0%, reflecting a more profitable portfolio mix and improved performance across its divisions.

Profit before tax rose to GBP69.0 million, up 9% from GBP63.2 million in H1 2024. Earnings per share grew 10% to 63.9p, and the interim dividend was increased by 9% to 18.0p.

Cash conversion remained robust at 85%, and return on invested capital improved significantly to 25.7%, up from 22.5% last year. Covenant leverage dropped to just 0.1 times, providing ample flexibility for growth and shareholder returns.

The Group announced a GBP100 million share buyback program to be executed over the next 18 months, reflecting its strong balance sheet and commitment to capital returns. Strategic progress included the divestment of two non-core, loss-making businesses in Q1 and continued momentum in bolt-on M&A activity, particularly focused on expanding its US platform businesses.

The Group reaffirmed its full-year guidance, with underlying operating profit expected to be in line with the market consensus of about GBP150.4 million.

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