The Hill & Smith Board is recommending an increase of 6% in the final dividend to 23.0p per share (2018: 21.8p per share) making a total dividend for the year of 33.6p per share (2018: 31.8p per share), an increase of 6% on the prior year. Underlying dividend cover remains a conservative 2.4 times (2018: 2.4 times). Reported dividend cover is 1.8 times (2018: 1.9 times).
Other financial highlights include:
Overall performance in line with the Board's expectations
Strong US performance driven by investment in ageing infrastructure and new construction projects
Infrastructure spend underpinning demand in UK markets, despite cautious investment environment
Actions taken to restructure smaller Scandinavian roads business, which faced challenges during the year
Continuation of portfolio management strategy:
- Three UK acquisitions completed at a cost of £43.9m, primarily in the growing security market
- Capital investment of £23.8m in higher return UK temporary road safety barrier and US Galvanizing businesses
Strong operating cash flow: net debt £215.3m (inc. £40.0m IFRS 16), 1.6x EBITDA; borrowing facilities expanded and extended
