Hill & Smith Hldgs PLC
22 April 2005
Relocation of galvanizing production
Hill & Smith Holdings PLC ('Hill & Smith') announced today that its subsidiary
Joseph Ash Limited is to relocate galvanizing production from its Digbeth,
Birmingham, plant to its other factories in the West Midlands. This will result
in the closure of the site later this year.
The Board of Hill & Smith considers that for a number of reasons the Digbeth
plant is no longer suitable for galvanizing production. The relocation may
result in the loss of up to 95 jobs. The resulting redundancy and other
closure costs will be taken as restructuring costs in the 2005 accounts. The
cash impact after taking into account the likely proceeds from the disposal of
the Digbeth property is expected to be broadly neutral.
The Board anticipates that the relocation of galvanizing production from Digbeth
to its more modern plants will significantly improve customer service and
operating efficiency and will also be earnings enhancing for the year ending
31 December 2006 and in subsequent years (see note).
For further information contact:
David Grove, Chief Executive, Hill & Smith Holdings PLC 0121 704 7430
07973 325 667
Edward Carter, Quantum PR 0121 633 7775
07770 378 097
Note: This statement should not be taken to mean that earnings per share in
periods following the relocation will necessarily be greater than those for
the relevant preceding financial period.
End
April 22nd, 2005
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