SOLIHULL-based building products supplier Hill & Smith has said trading is in line with expectations.

In an interim management statement covering the period from the start of the year to May 14, the firm - which supplies infrastructure products and galvanizing services to global markets - said the momentum seen in the second half of 2013 has continued at the start of this year.
 
It said the demand for permanent and temporary road barriers in the UK continues to gain momentum as the Highways Agency escalates spending as part of its plan to increase investment in the strategic road network through to 2020. 
 
In the US, trading in the firm's composite materials operation remains strong although the improved profitability has been offset by a lower contribution from its transmission substations business, principally caused by severe weather related issues at the start of the year.

Its pipe supports businesses in the US are seeing an improving backlog and enquiry levels as more projects for gas-fired power stations, fertilizer, LNG and petrochemical plants begin construction. 
 
Underlying galvanizing volumes, up to 30 April, are 7% ahead of the same period in 2013. The US has seen an increase in the lower margin solar and transmission pole work, whilst other end markets remain stable.

In France volumes are also ahead of 2013 with sales to the smaller customers strong, although pricing pressure is apparent due to the lack of large project work in the market.

In the UK Hill & Smith has seen a slower start to the year in structural steel volumes, offset by higher demand for internally manufactured products and the continued outperformance of the Medway business it acquired last year. 
 
Net debt at April 30 was £101.3m compared to £87.1m at December 31, reflecting both the seasonality of working capital and the increasing level of capital investment in organic growth initiatives. 
 
The firm has announced that it has amended and extended its syndicated revolving credit facility. The £210m multi-currency facility has been amended on favourable terms and its term extended by three years to 26 April 2019. 
The financial covenants remain unchanged and the new facility will be effective from June 2.
 
Derek Muir, group chief executive, said: "Our markets remain active and with our strong niche positions in those markets, combined with our geographical representation, we are positioned to make further progress during 2014, in line with our expectations."