Hill and Smith became the latest victim of government cutbacks in the construction sector this morning, dropping 15% on the back of a profits warning.
The company makes signs for roads, and with the programme for managed motorways spending put back, the company moved to lower expectations in an Interim Management Statement today.
Group CEO Derek Muir said:
Overall we are pleased with the outcome of the UK Government's spending review although there will be a twelve month delay in starting the first managed motorway programme, which will have an effect on our UK infrastructure businesses in 2011.
The shares were down 44p to 244p, with Altium cutting its price target for the stock to 275p from 320p.
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