Construction group Hill & Smith reports profits boost despite supply chain strains
International construction and infrastructure firm Hill & Smith reported a jump in full-year profits today after suffering a slowdown in trading through the pandemic.
Pre-tax profits rose 43 per cent to hit £50.9m, up from £35.5m last year, as the firm surged back to pre-pandemic performance, lifted by booming profits in its utilities division and strong demand in the US.
Hill & Smith widened margins to 8.1 per cent as revenues grew to £705m, up from £660.5m, but bosses said the firm felt the pressure of supply chain disruption and rising costs .
“2021 was not without its challenges, particularly supply chain and inflationary pressures,” chief executive Paul Simmons said.
“The Group navigated these well which is testament to the resilience of our autonomous operating model.
“Creating sustainable infrastructure and safe transport is core to our purpose and over the course of the year, we have developed an ESG strategy, setting out our path to carbon net zero by 2040.”
Simmons said the firm was now gearing up for growth despite inflation and geopolitical uncertainties likely to strain supply chains in the year ahead.
Shareholders are also set for a pay day as the firm upped its dividend to 31p per share, up from 26.7p per last year.