Revenue for the period was £163.1 million, compared with £153.2 million for the same period in 2015. This represent a 2% organic increase after adjusting for currency translation and acquisitions/disposals. The positive translational impact of the strengthening of the US$ and the Euro against UK Sterling increased revenue by 3% versus average exchange rates in the first half of 2015. Underlying operating profit and operating margin are ahead of the same period last year.
A key improvement has been seen in its infrastructure division. In the UK, implementation of the Government’s Road Investment Strategy continues to develop in line with expectations and demand for the temporary safety barriers is strong. The firm says that order intake has remained encouraging for variable message signs which bodes well for the rest of the year.
On 13 May, the firm completed the acquisition of Safety and Security Barrier Holdings (Hardstaff Barriers) for a total cash consideration of £11 million on a debt free, cash free basis. The consideration will be funded from the Group’s existing bank facilities. Hardstaff Barriers is a privately owned business specialising in the sale and rental of fully tested temporary and permanent pre-cast concrete barriers for site and vehicle protection, and complements the firm’s existing range of vehicle restraint systems. Hardstaff Barriers has also developed a quick-deploy, high security perimeter system for the protection of critical infrastructure in vulnerable locations with products supplied across the UK and Europe. In the year ended 31st March 2016 the business generated revenue and adjusted EBITDA of £3.8 million and £1.3 million respectively. The acquisition is expected to be earnings development in the first full year of ownership.
Internationally, the firm continues to make progress in each of its chosen geographies and results are ahead of prior year. On 1st April 2016, the company completed the acquisition of FMK Trafikprodukter (FMK) for a cash consideration of £2.9 million. Additional deferred payments of £0.6 million are due on achievement of certain targets. FMK designs and manufactures safety barriers, noise reduction screens and bridge parapets for the Scandinavian market and is based in Sweden. In year ended 30th April 2015, FMK had turnover of £3.9 million and EBITDA of £0.2 million. The acquisition of FMK and its suite of products will accelerate the growth plans of the group’s existing Scandinavian roads business.
