HSS Hire Group PLC Pre-Close Trading Update (9926J)
July 04 2017 - 1:00AM
UK Regulatory
TIDMHSS
RNS Number : 9926J
HSS Hire Group PLC
04 July 2017
4 July 2017
HSS Hire Group plc
("HSS" or "the Group")
Q2 FY17 Trading Update
HSS is pleased to announce a pre-close trading update for the 13
weeks ended 1 July 2017.
Underlying revenue in the second quarter was marginally ahead of
the prior year with an improving Rental revenue trend as the
programme of sales initiatives we began implementing in March
gained traction with target customers, supported by the continued
strength of our Services business.
Good progress has been made with the cost reduction initiatives
announced in May, with the majority of these - c.GBP10m -
implemented by the end of Q2. Accordingly we expect to be at the
upper end of our previous guidance of annualised savings of between
GBP11m to GBP13m below the Q1 FY17 cost run-rate.
The Group's new operating model is delivering improved fleet
availability across our network, driving greater capital
efficiency, as expected. As a result we now expect that FY17
capital expenditure will be in the range of GBP36m - GBP38m, GBP4m
- GBP6m lower than FY16.
EBITA growth and net debt reduction will be weighted towards H2
FY17 in line with usual trading seasonality and reflecting the
growing momentum from our sales initiatives combined with the
impact of our cost actions.
Alan Peterson, Chairman said: "Our clear focus during Q2 has
been on translating our market-leading fleet availability into
sales growth within our Rental business. We are therefore pleased
to see underlying core hire sales momentum building month by month
across the quarter as initiatives targeting smaller and medium
sized customers have begun to have an impact.
"In parallel, the operating model is also delivering the planned
benefits of greater capital efficiency, which is reducing our
investment requirement, and higher cost savings through operational
efficiency. We are encouraged by these initial signs that our
operating model is delivering the benefits we expected."
Steve Ashmore, CEO, said: "Having only joined the Group towards
the end of the quarter, I have spent the last few weeks
familiarising myself with its operations and meeting the team.
While this process is ongoing, it is already clear to me that we
have a fundamentally strong business with the building blocks in
place to deliver improved customer experience and shareholder
returns. I look forward to updating shareholders further at the
interim results in August."
HSS Hire Group plc will announce its interim results for the 26
week period ended 1 July 2017 on 30 August 2017.
For further information, please contact:
HSS Hire Group plc Tel: 020 7638 9571 (on
4 July 2017)
Steve Ashmore, Chief Thereafter: 020 8260 3343
Executive Officer
Paul Quested, Chief
Financial Officer
Robert Halls, Investor
Relations Manager
Citigate Dewe Rogerson Tel: 020 7638 9571
Kevin Smith
Nick Hayns
Note to editors
HSS Hire Group plc provides tool and equipment hire and related
services in the UK and Ireland through a nationwide network of over
280 locations. Focusing primarily on the maintain and operate
segments of the market, over 90% of its revenues come from business
customers. HSS is listed on the Main Market of the London Stock
Exchange. For more information please see www.hsshiregroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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