LONDON (ShareCast) - (ShareCast News) - Hill & Smith shares surged on Wednesday as the group hailed its "best ever" trading performance in 2017.
The company, which designs, manufactures and supplies products for the construction industry, said pre-tax profit rose 15% to £78.5m in the year to the end of December 2017 thanks to strong growth in its international infrastructure work and a solid performance from its galvanising business, as revenue increased 8% to £585.1m.

Basic earnings per share were up 60% to 68.6p and the group lifted its dividend per share by 14% to 30p.

The company said the increased threat of terrorism in the UK has intensified demand for deployment of its range of hostile vehicle mitigation products, including temporary and permanent, steel and concrete applications in key locations across the country. It has completed projects to protect bridges in London, as well as sports and other high profile events and said discussions are also being held with security agencies outside the UK.

Chief executive Derek Muir said: "Hill & Smith has delivered its best ever trading performance in 2017 with good organic revenue and profit growth, supported by targeted bolt-on acquisitions and the restructuring of under-performing assets, improving overall returns and shareholder value.

"Our performance remains underpinned by our consistent and proven strategy of international diversity combined with the leading positions our businesses hold in their respective markets. Prospects in our core US and UK infrastructure markets as well as the other geographies in which we operate continue to be positive for 2018 and beyond.

"Overall, despite political and macro-economic uncertainties, we remain well positioned to again deliver another year of progress."

Investec upgraded its stance on the stock to 'buy' from 'add' following the results, which it said were "very strong".

"For the fourth year in succession, Hill & Smith has delivered better-than-expected full year results," the brokerage said, noting a 4.3% beat to its adjusted pre-tax profit estimate.

At 0855 GMT, the shares were up 11% to 1,373p.

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