DAVY VIEW

Hill & Smith has delivered another period of strong trading, especially in the US infrastructure focused businesses. Full year guidance remains unchanged, so we expect only minor moves in consensus today, aided by the FX headwinds that were building for FY25 significantly reducing. Recent acquisitions are integrating well. With four deals done this year already, we do not anticipate any further deals, but we understand the pipeline for 2025 is very encouraging. The new CEO has scope to increase the EBITA margin target at the FY24 results in March, further lifting the financial metrics. The shares continue to look good value.