HSS results

1 May 2024

HSS Hire Group’s full-year results announced today for the period to 30 December 2023 show adjusted profit before tax down by 43% to £11.9m (2022: £21.0m). This, however, is the second highest figure since the business listed on the stock exchange AIM market in February 2015.

Group revenue increased by 5% to £349.1m (2022: £332.8m), with rental revenues increasing marginally by 0.5% to £207.3m (2022: £206.2m). Revenue from HSS’s Services business grew by 12% to £141.8m, (2022: £126.6m).

HSS’s operating model is built around two divisions. HSS ProService is a scalable, technology-based business focusing on sales acquisition, whilst HSS Operations is a fleet-owning fulfilment activity. Over 90% of revenues come from business customers.

The Services operation is described as a one-stop shop, self-service marketplace driven by the Brenda on-line platform with a network of re-hire and supply chain partners. £5.5m has been invested in further developing the digital technology and £5.1m in areas such as the central sales team and in-housing technology specialists from a third party developer.

In FY24 HSS launched two new product verticals, Equipment Sales and Building Materials, with products readily available to customers across all channels, whether they choose to self-serve, visit a builders merchant where the hirer has a presence, or make contact via email or phone.

In Equipment Sales, HSS partnered with Toolbank to provide an offering of over 30,000 tools, fittings, consumables and PPE.

Commenting on the results, Steve Ashmore, Chief Executive Officer, said: "I am pleased to report another year of significant strategic progress alongside resilient financial performance, delivering revenue growth ahead of the market despite a more challenging macro-environment.

“We have made big strides implementing clear focussed strategies for our two divisions ProService and Operations, with early positive results providing the confidence to accelerate strategic investment to evolve HSS into a leading marketplace for equipment services. Customers are engaging with our marketplace platform at an exponential rate, valuing the ease it brings and resulting in significant revenue growth.”

● HSS has announced that, after nearly eight years with the group, Paul Quested, Chief Financial Officer, will leave and resign his directorship with effect from 1 September 2024, having decided to dedicate more time to his family. A recruitment exercise to find his replacement is underway.