HSS results

28 September 2023

In its results announced tthis morning for the 26 week period ended 1 July 2023, HSS Hire reports an increase in revenue growth of 6.3 per cent to £170.1 million (2022: £159.9 million), although adjusted Ebitda was reduced by 2.9 per cent to £32.1 million (2022: £32.9 million) owing largely to an investment of £2.2m in additional operating expenditure, including a new central sales team, and £2.4m technology platform capex. 

Adjusted pre-tax profit for the period was £5.5 million (2022: £6.5 million).

The Group has completed an internal restructuring to support its long-term strategic objectives, including the creation of a new divisional structure, separating out the ProService and Operations businesses. 

HSS ProService is a digital marketplace focussed on customer and supplier acquisition, while the HSS Operations fulfilment business includes power generation and a focus on health and safety and the circular economy credentials. HSS says that 28 per cent of group transactions (2022: 21 per cent) are now originated through its online self-serve technology platforms

The business reported rental growth of 2 per cent with fleet utilisation maintained at 56 per cent on a larger fleet. 

HSS continues to grow its presence in builders merchant locations, with four outlets added during the first six months of the year bringing the total to 67. By the end of 2023, the company plans to add a further 20 builders merchants and close 16 traditional branches, with annual cost savings of approximately £1 million and redeployment of all impacted colleagues.  

Steve Ashmore, Chief Executive Officer, said: "I am pleased to report another consecutive period of growth with strong underlying performance driven by continued double-digit growth in our capital-light Services segment.” 

He added: "The macro environment has become more challenging from July; we have experienced significant volatility of demand in our Rental segment over the last few weeks which has widened the range of possible performance outcomes for the balance of the year. However, this will be temporary, and we therefore plan to leverage our robust balance sheet to sustain investment in the business, implementing our strategy to ensure that HSS can take full advantage of the market when it recovers."