Shares round-up: Hochschild Mining, Hill & Smith, 4imprint

The resumption of dividends by Hochschild Mining (LSE:HOC) and unveiling of new targets by Hill & Smith (LSE:HILS) today ensured their shares returned to form at the top of the FTSE 250 index.

Their double-digit percentage increases on the day of annual results recouped share price losses so far in 2025, having previously been on strong runs since the end of 2022.

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South America-focused gold miner Hochschild boosted its valuation by declaring that it intends to set aside $10 million for the payment of a dividend of 1.94 US cents a share on 18 June.

The distribution is well ahead of consensus estimates of 1.3 US cents a share and is in line with the payments of 1.95 US cents made in June and September of 2022.

Hochschild put the dividend on hold due to political, social and regulatory challenges as well as the cost of its Mara Rosa mine in Brazil, which entered commercial production in May.

Alongside today’s resumption, Hochschild unveiled a new dividend policy aimed at providing greater predictability and consistency for investors in the years ahead.

This will be based on 20-30% of attributable free cash flow, combined with a minimum $10 million payout across two instalments.

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Peel Hunt said this suggested upgrades to its present 2025 dividend estimate of four US cents. It reiterated its Buy stance and 230p target price, which compares with 214.5p after the results.

The dividend return came as Hochschild reported its best financial performance for 13 years, with a record gold price and operational efficiency behind a 37% rise in revenues to $947.7 million and adjusted earnings 54% higher at $421.4 million.

Strong cash flow drove a $40 million reduction in net debt to $215.6 million, while also enabling continued investment in the project pipeline.

Hochschild’s exploration efforts added a record 2.8 million gold-equivalent ounces of mineable resources, extending the life of all its current operations. Two major growth projects are also being developed that could boost annual production by over 200,000 ounces.

The group’s overall production target for this year is between 350,000 and 378,000 gold equivalent ounces, up from 347,374 last year. The new Mara Rosa mine is set to produce 94,000-104,000 ounces.

Peel Hunt added: “The reintroduction of dividends places visible discipline on management and with exploration adding significantly to the operating asset resource base, cash flow duration is extended.”

The bounce for Hill & Smith follows a 17% slide for shares since the specialist in infrastructure, galvanising services and road safety products last updated investors in November.

Fears over the impact of the slowing economy in the US, where the company generated 76% of group underlying operating profit in 2024, fuelled the sell-off.

Those worries were allayed by new chief executive Rutger Helbing today as he said the US businesses continued to benefit from strong demand for infrastructure solutions.

He added: “We are closely monitoring the effect of current trade tensions on our businesses and supply chains, however we do not see a significant impact at this time.”

The outlook for UK businesses in 2025 is likely to remain challenging given budgetary pressures in the public sector, although the company is cautiously optimistic for some level of recovery.

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Confidence in the group’s prospects has been seen in plans to pay a final dividend of 32.5p a share on 4 July, increasing the total for the year by 14% to 49p a share. Underlying earnings of £143.5 million rose 17% year-on-year and were 3% ahead of consensus.

Helbing also addressed the group’s longer-term growth outlook by unveiling a new financial framework, including an increase in operating margin target to more than 18% from the 16.8% reported today.

He added: “I am excited about the potential for the group going forward as we continue to build on the strong momentum and we expect another year of good progress in 2025.”

The shares rose 164p to 1898p, compared with the price target of 2540p held by analysts at Jefferies prior to today’s results.

Shore Capital added: “The direct impact of tariffs is likely to be limited, in our view, on both a positive and negative basis, with much of the competition for the US businesses also being based domestically.”

At the bottom of the FTSE 250 index, the ongoing tariffs uncertainty overshadowed strong results by the US-focused promotional products firm 4imprint Group (LSE:FOUR).

Revenues lifted 3% to $1.37 billion and pre-tax profits improved by 10% to $154.4 million, while the company’s strong financial position has allowed a special dividend of 250 US cents a a share. This brings the total distribution for the year to 490 US cents.

However, shares fell 632.6p to 4,157.3p as chair Paul Moody said order intake had been slightly lower than a year ago at the start of 2025.

He added: “It is possible that market conditions, including potential tariff impacts, may continue to influence demand in 2025

“From our experience, however, as business sentiment improves, demand for promotional products increases, as does our ability to gain market share.”

Panmure Liberum cut its earnings forecasts for this year and next by 7% and 10% respectively to reflect the macroeconomic conditions. However, it retained its Buy recommendation alongside a lower price target of 6,000p.