Everyone knows the big names of the UK stock market – companies like Unilever, BP or HSBC that dominate headlines and investor attention. But beyond these household names sits a much larger group of UK smaller companies that receive far less coverage, despite playing important roles in the economy.
Through our Hidden Gems series, we shine a light on some of the under‑the‑radar businesses The Henderson Smaller Companies Investment Trust invests in – explaining what they do, why they matter, and the key factors we focus on when identifying long‑term opportunities early.
Hill & Smith – Building the foundations behind everyday infrastructure
Some companies don’t sit in the spotlight, but their products are all around us. From roads and bridges to energy networks and data centres, modern infrastructure depends on businesses that quietly keep things running.
Hill & Smith is one of those companies. Founded in 1824 and listed on the London Stock Exchange in 1969, it has evolved into an international infrastructure products and services group, with operations across the US, UK and India. Today, the US is its largest driver of earnings and growth, reflecting the scale of infrastructure investment currently underway.
Rather than building infrastructure itself, Hill & Smith focuses on supplying the specialist products and services that support it – for example helping protect steel used in roads, bridges and energy networks so it lasts longer. That behind‑the‑scenes role makes it an important enabler of long‑term economic growth.
Why this matters now
Infrastructure investment is rising globally, driven by the need to modernise ageing assets, support energy transition, and build capacity for a more digital economy.
In the US in particular, government initiatives are channelling significant funding into areas such as transport, energy networks and data centres – providing strong visibility of demand for years to come. This creates a supportive backdrop for companies like Hill & Smith, whose products are used throughout these projects.
A business built for long-term growth
What stands out about Hill & Smith is not just what it does, but how it grows. Demand for its products tends to be steady, and the company expands in a measured, disciplined way.
A key part of this is acquisitions. Management has a strong track record of buying smaller, complementary businesses in niche infrastructure markets, often at sensible valuations. These acquisitions have consistently added to both revenue growth and profitability over time.
This is supported by a decentralised operating structure, where local management teams run individual businesses. This allows decisions to be made close to customers, helping the group remain responsive while maintaining the financial strength of a larger organisation.
Hill & Smith at a glance
| What the company does | Hill & Smith supplies infrastructure products and services, including engineered solutions and protective coatings for steel used in construction and industrial projects. |
| Why this matters now | Growing investment in infrastructure – particularly in the US – is driving demand for the products needed to build, maintain and upgrade essential assets. |
| How it makes money | The group generates revenue through a mix of product sales and services across three core divisions, with a growing contribution from higher-margin US operations. |
| What’s changing | The business is increasingly focused on the US, where strong structural growth drivers and supportive policy are creating long-term opportunities. Ongoing acquisitions continue to expand its capabilities and market reach. |
| What we like | A high-quality business with a strong track record of returns on invested capital, resilient demand, and a proven track record of reinvesting profits to drive steady growth. Its exposure to essential infrastructure gives it a durable role in the economy. |
| What could go right | Continued infrastructure spending, combined with successful acquisitions, could help the company grow earnings steadily over time – with more of each pound of revenue translating into profit. |
| What we’re watching | Execution of the acquisition strategy, continued strength in US markets, and the group’s ability to maintain strong returns as it scales. |
Earnings per share (EPS)
EPS is the bottom-line measure of a company’s profitability, defined as net income (profit after tax) divided by the number of outstanding shares.
Profit margin
The amount by which the sales of a product or service exceeds business and production costs.
Valuation metrics
Metrics used to gauge a company’s performance, financial health, and expectations for future earnings, e.g. P/E ratio and ROE.
Important Information
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