Hill & Smith : Acquisition of ATG Access and Debt Facility Update

22 February 2019

Hill & Smith Holdings PLC

Acquisition of ATG Access and Principal Debt Facility Update

Hill & Smith Holdings PLC ('Hill & Smith' or 'the Group'), the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, today announces that it has completed the acquisition of ATG Access Limited ('ATG'), from LDC and private shareholders, for a cash consideration of £22.5m, on a debt and cash free basis (the 'Acquisition'). The consideration will be funded from the Group's existing bank facilities.

Based in the UK and exporting to over 30 countries, ATG specialises in the development, manufacture, and installation of hostile vehicle mitigation perimeter security solutions including bollards (automated, static, impact and non-impact tested), road blockers, barriers and gates. Representative of ongoing trading, in the unaudited twelve months to 31 October 2018,ATG recorded turnover of £21.1m, adjusted EBITDA of £2.5m, and had net operating assets, on a debt and cash free basis of £0.6m. The Acquisition is expected to be earnings enhancing to the Group in the first full financial year following acquisition.

Derek Muir, Group Chief Executive, commented: 'ATG provides high security and traffic management solutions and is the UK's leading manufacturer of bollards, road blockers and vehicle barrier systems. The acquisition provides the Group with a strong platform to introduce new products and new geographies, thereby accelerating the expansion of both our existing UK and international roads businesses. We are excited to welcome ATG and its employees to the Group.'

The Group today also announces that in January it amended and extended its principal debt facility, extending the term to January 2024 and increasing the tenor by £50m to c.£280m, with no material impact on costs. The financial covenants on the syndicated revolving credit facility remain unchanged. The amendment provides the Group with extended certainty of funding and further increases the headroom available to the Group in order to pursue growth opportunities.

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Cautionary Statement

This announcement contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be regarded as a profits forecast.

For further information, please contact:

Hill & Smith Holdings PLC

Derek Muir, Group Chief Executive Tel: [phone]

Mark Pegler, Group Finance Director

MHP Communications

Andrew Jaques / Ollie Hoare Tel: [phone]

Notes to Editors

Hill & Smith Holdings PLC is an international group with leading positions in the design, manufacture and supply of infrastructure products and galvanizing services to global markets. It serves its customers from facilities principally in the UK, France, USA, Sweden, Norway, India and Australia.

The Group's operations are organised into three main business segments:

Infrastructure Products - Roads, supplying products and services such as permanent and temporary road safety barriers, hostile vehicle mitigation products, street lighting columns, bridge parapets, temporary car parks, traffic management and variable road messaging solutions.

Infrastructure Products - Utilities, supplying products and services such as pipe supports for the power and liquid natural gas markets, energy grid components, composite 'GRP' products, plastic drainage pipes, industrial flooring, handrails, access covers and security fencing.

Galvanizing Serviceswhich provides zinc and other coatings for a wide range of products including fencing, lighting columns, structural steel work, bridges, agricultural and other products for the infrastructure and construction markets.

Headquartered in the UK and quoted on the London Stock Exchange (LSE: HILS.L), Hill & Smith Holdings PLC employs some 4,400 staff, principally in 7 countries.