LONDON (ShareCast) - (Sharecast News) - Infrastructure products manufacturer Hill & Smith posted a rise in full-year profits on Wednesday but writedowns and restructuring costs at its Scandinavian business held back growth.
Hill & Smith said pre-tax profit had grown 3% to ?61.8m in 2019, while revenues increased 9% to ?694.7m. Operating profits were up 8% at ?86.3m, driven by a strong performance in the US.

The FTSE 250-listed group's full-year dividend was raised by 6% to 33.6p.

However, H&S said growth had been held back by a ?7m impairment charge and restructuring costs of ?1.9m - both of which were related to its Scandinavian operations.

"Our Scandinavian roads business, which for context represents around 5% of group revenue, experienced difficult market conditions and operational challenges resulting in the business reporting operating losses in the year," said H&S.

Acquisition related expenses of ?1.8m and ?6.2m worth of amortisation of acquisition intangibles also weighed on earnings.

"Our outlook for 2020 remains unchanged and, whilst we may see some short-term delays in the commencement of UK roads projects across the transition from RIS 1 to RIS 2, we expect another year of good progress for the group," the company said.

"The global outbreak of the COVID-19 virus is a developing situation, and at this stage we are not in a position to speculate on the duration nor its future impact on the group. Presently we have seen no material impact on our business, however, we continue to monitor the situation closely and will update the market if appropriate."

As of 0905 GMT, H&S shares were up 4.12% at 1,432.72p.

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