The belated approval of US president Joe Biden’s $1 trillion infrastructure plan is a positive development for several UK-listed businesses.

However, this is not ‘new’ news to the market as the spending package had been in the post for months, held up by brinksmanship and haggling. The spending will be allocated across areas including roads, rail bridges, high-speed internet, green energy, clean water supplies and electric vehicle charging points.

Some of the more obvious beneficiaries of this spending include building products giant CRH (CRH), road signage and barriers specialist Hill & Smith (HILS), US-focused plumbing products group Ferguson (FERG), groundworks firm Keller (KLR) and construction equipment hire outfit Ashtead (AHT).

Investment bank Jefferies believes some 35% of Hill & Smith’s current revenue stream is exposed to the increased spending.

Many of these stocks have already enjoyed strong gains in anticipation of Biden’s spending spree. Year-to-date Ashtead is up 81.8% and CRH has advanced 18.4% while Ferguson has gained 28.9%, Hill & Smith is up 28.8% and Keller is trading 28.9% higher.

The positive impact won’t be felt in earnings straight away. Jefferies, for example, doesn’t expect Hill & Smith’s revenue and profit to benefit from the US infrastructure boost until 2023.

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