Hill & Smith Holdings has reported “encouraging prospects”, as it revealed strong profit growth in the first half. The Solihull-based infrastructure and galvanizing services group said the “momentum” from the six months to 30 June 2014 is continuing into the second half.

Revenues in the first half were £223.8 million, up 1% compared with £221.6 million a year ago — and 5% up on a constant currency basis. Underlying operating profits and pre-tax profits both recorded double-digit growth to £22.5 million and £20.8 million respectively. Reported profit before tax was up from £15.7 million to £16 million.

Chief executive Derek Muir said: “The geographic and market diversity of our businesses, together with our strategic initiatives, fuelled our momentum in the first half of the year. The prospects for our international infrastructure markets are encouraging, with healthy levels of investment being committed by both the public and private sectors in transportation and utilities.

“Our broad-based involvement in the Government’s road investment programmes in particular will underpin our performance over the medium term.

“Currency headwinds are continuing in the second half, when we also face strong comparatives with last year, but our performance to date has been in line with expectations, and we expect 2014 to be a year of good progress for the group.”