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Hill & Smith (HILS) revenue up despite supply chain headwinds

By Angela Barnes

10:48, 25 November 2021

Hill & Smith Holdings PLC company logo seen displayed on a smartphone
Hill & Smith said trading was robust and it was managing supply challenges – Photo: Alamy.

Shares in Hill & Smith Holdings (H&S) dropped 6.09% on Thursday afternoon despite the company reporting “robust” trading in its latest financial update. 

The infrastructure company said in the four-month period to 31 October 2021, organic revenue rose 4% to £237.1m ($315.9m).

It said it had managed shortages of materials and labour, and increased its prices to help offset the rising price of raw materials such as steel.

“Supply chain headwinds relating to the availability of materials and labour continue to be appropriately managed. Our operating companies have also implemented price increases to help offset input cost inflation, with steel being the most impacted category for the group,” H&S said in the update.

Based on the trading performance to date, the group said it remains on track to deliver full-year 2021 underlying operating profit in line with analyst consensus expectations.

“The Board remains confident in the medium to longer term outlook for the group, supported by strong growth drivers for both sustainable infrastructure and safe transport,” it added.

Trading by Division

H&S said in roads and security, demand for the UK temporary barrier fleet was supported by a range of strategic road network schemes including the smart motorway scheme. 

“We have also started to see an encouraging recovery in our UK security businesses as restrictions on public gatherings ease. In the US, the outlook for the Roads business remains positive and during the period we invested in the expansion of our rental fleet,” it said.


463.00 Price
+2.050% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.22


142.10 Price
+0.360% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.24


15.16 Price
-10.810% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.14


238.31 Price
+1.270% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 0.15

Meanwhile, the utilities division performed well, it said, with its fire-resistant utility poles in demand in the US.

Moreover, the Galvanizing division delivered a good performance in the UK and France.

“As previously reported, US labour shortages continued to limit production capacity in some US galvanizing plants, with the team taking action to mitigate the impact by focusing on higher margin work,” H&S added.

Financial position

The company said net debt as of 31 October 2021 was £154.2m.

The group said it remains “cash generative” with the movement in the period, including £13.9m for the payment of the 2020 final dividend. 

Its preliminary results for the year ending 31 December 2021 are scheduled to be announced on 10 March 2022, it added.

Read more: Life beyond Covid as Southeast Asia ambles back to a new normal

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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