HSS Hire Group PLC Strategic Review (6199Y)
December 07 2017 - 1:00AM
UK Regulatory
TIDMHSS
RNS Number : 6199Y
HSS Hire Group PLC
07 December 2017
07 December 2017
HSS Hire Group plc
Strategic Review: Returning the business to historic levels of
performance
HSS Hire Group plc ("HSS" or "the Group"), is hosting an event
in London today, 7 December 2017, where management will update
bondholders and equity investors on the outcome of the Group's
Strategic Review. HSS Hire Group presented its third quarter
trading update on 29 November 2017.
Since the arrival of Steve Ashmore, Chief Executive Officer, in
June 2017, the Group has undertaken an extensive review, looking
across every aspect of HSS's business with the aim of returning the
Group to historic levels of performance. The analysis examined in
great detail, the profitability of each customer, product and
branch in a way that has never been done before.
The conclusions of the review have been used to define three new
strategic priorities for the Group which are as follows:
1. To delever the Group
Taking the GBP13m delivered savings announced in the third
quarter of this year, HSS Hire has identified GBP10m - GBP14m of
additional savings that will enable the Group to substantially
reduce leverage and create a more resilient platform from which to
drive profitable growth.
2. To repair the tool hire business
The review has identified significant potential for improved
profits in the heritage tool hire business by focusing on profit
opportunities in relation to customers, products and branches.
Whilst the Group will focus on the tool hire business, management
will ensure its valuable specialist Rental and Services businesses
continue to perform well.
3. To strengthen the commercial proposition
HSS has identified several actions to strengthen its commercial
proposition across the Group. Targeted sales plans based on
customer segmentation will provide focus on the most profitable
opportunities and the prioritisation of local markets, with the
Group continuing to build on its digital competitive advantage.
Looking ahead, HSS expects these priorities to deliver
significantly improved business performance. The Group sets out
today the following financial targets to achieve by 2020:
-- Revenue growth: Grow in line with the market
-- Rental revenue growth: Grow ahead of the market
-- EBITDA margin: above 20%
-- EBITA margin: above 9%
-- Leverage: less than 3x
-- Return on assets: above 20%
Steve Ashmore, Chief Executive of HSS, commented:
"HSS is a business with attractive qualities and significant
potential. Our Strategic Review, the most detailed in the company's
history, has provided us with deep insights on HSS's trading
performance and enabled us to devise a clear and actionable set of
priorities.
We have made progress over the past six months to return the
business to operating profitability, providing us with a platform
from which to make further improvements. Our specialist tool hire
and rental businesses are performing well and the additional cost
savings we have identified will see a material reduction in
leverage in 2018. As we look further ahead, we are excited by the
Group's potential and confident in our plans."
-Ends-
HSS Hire will present to equity investors at 09.00 GMT and to
bondholders at 11.00 GMT. Both these meetings will be available as
a conference call and will include a Q&A session. A playback
facility of both sessions will be available on the HSS Hire website
in due course.
Dial-in details (09.00 Dial in details (11.00
GMT) GMT)
UK Toll Number: +44 (0)2031394830 UK Toll Number: +44 (0)2031394830
UK Toll-Free: 08082370030 UK Toll-Free Number:
Pin: 22913317# 08082370030
Pin: 56730391#
Accompanying presentation materials will be available on the
Company website from 08.45 GMT today. Please follow the link below
for access:
http://www.hsshiregroup.com/investor-relations/financial-results/
For further information, please contact:
HSS Hire Group plc Tel: 020 3757 9248 (on
7(th) December)
(parent company of Hero Thereafter please email:
Acquisitions Limited) Investors@hss.com
Steve Ashmore, Chief
Executive Officer
Paul Quested, Chief Financial
Officer
Jonathan Edwards, Investor
Relations Manager
Teneo Blue Rubicon Tel: 020 3757 9248
Robert Morgan
Shona Buchanan
Disclaimer:
This announcement contains forward-looking statements relating
to the business, financial performance and results of HSS Hire
Group plc and the industry in which HSS Hire Group plc operates.
These statements may be identified by words such as "expect",
"believe", "estimate", "plan", "target", or "forecast" and similar
expressions, or by their context. These statements are made on the
basis of current knowledge and assumptions and involve risks and
uncertainties. Various factors could cause actual future results,
performance or events to differ materially from those described in
these statements and neither HSS Hire Group plc nor any other
person accepts any responsibility for the accuracy of the opinions
expressed in this presentation or the underlying assumptions. No
obligation is assumed to update any forward-looking statements.
Notes 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
250 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
END
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