HSS reports progress

30 June 2021

HSS has given a trading update ahead of its annual general meeting later today, reporting that its move to a digital hire platform has improved its performance.

The company states that, building on the momentum in Q1 2021, trading has continued to improve since the group reported its 2020 year end results, with underlying revenues in Q2 at 102% of 2019 financial year levels.

 In April, HSS announced a pre-tax loss of £23.6m in its results for the year ended 26 December 2020. This compared against a £5.8m loss the previous year. 

HSS says that Q2 2021 Ebitda (earnings before interest, taxes, depreciation, and amortization) and Ebita remain ahead of the comparable levels in the 2019 financial year, and adds that the group's digitally-led operating model is delivering further margin expansion. 

Ebitda for 2021 is expected to be slightly ahead of market expectations and Ebita to be materially ahead, benefiting from reduced depreciation following the change in the operating model.

Cash collection is reported to have remained strong throughout the quarter and the company expects to achieve its net debt leverage 2021 exit rate target of below 2x at the half-year.

Steve Ashmore, chief executive of HSS Hire Group, commented: “Our strong operating profit performance, ahead of 2019 levels is testament to the effectiveness of our digital strategy. Our embedded technology platforms combined with our partnership with builders merchants has allowed us to maintain national coverage while significantly lowering fixed costs and improving margins.” 

Further performance details will be given at HSS' 2021 half year results update, expected to be held in September.