Business
Telford Closure
Telford Closure.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n \nRNS Number : 9228V Hill & Smith Hldgs PLC 19 December 2013 \n \n\n \n19 December 2013\n \nHill & Smith Holdings PLC\n \nTelford Closure\n \nHill & Smith Holdings PLC, the international group with leading positions in the supply of infrastructure products and galvanizing services, reports that its Redman Fisher Engineering Limited subsidiary has announced its intention to close its Telford operation, trading as Access Design and Engineering (\"Access Design\"), and transfer all production and manufacturing activity to a sister site in Middlesbrough.\n \nAs previously reported, Access Design, which manufactures and installs secondary steelwork, industrial flooring and handrails to AMP5 projects, was downsized earlier in the year to reduce its exposure to the challenging and highly competitive contracting arena. The challenging market conditions facing this particular area of our business have not abated during 2013 and the relocation of the business to the successful Middlesbrough site will significantly reduce overhead and provide a foundation for its future profitable growth within the UK market.\n \nThe Group expects to book a one off non-underlying charge of circa £4.9m in its 2013 financial statements, of which £1.2m is non cash related. The impact of the restructuring is expected to be marginally earnings enhancing in 2014.\n \nThe Board previously reported the disposal of land and buildings at its former Joseph Ash site in London for cash proceeds of £2.5m, which it can now confirm produced a gain on disposal of £1.7m which will be recorded as a non-underlying item in the 2013 financial statements.\n \nDerek Muir, Group Chief Executive, commented: \"These actions, whilst not taken lightly, further demonstrate Hill & Smith's commitment to its stated strategy of active portfolio management in furtherance of improving return on sales, return on invested capital and shareholder value.\"\n \nNote: The statement regarding earnings enhancement does not constitute a profit forecast nor should it be taken to mean that the earnings per share of Hill & Smith in the year ending 31 December 2013 or in future years will necessarily match or exceed the Group's historical earnings per share.\n \nENDS\n \nFor further information, please contact...