TIDMHSS
RNS Number : 1002P
HSS Hire Group PLC
24 May 2018
HSS Hire Group Plc
Q1 18 Trading Update
Recovery gains momentum
HSS Hire Group Plc ("HSS" or the "Group"), announces an update
on its performance for the 13 week period ended 31 March 2018.
Financial Highlights Q1 18 Q1 17 Change
(Unaudited) (13 weeks) (13 weeks)
Revenue GBP84.4m GBP80.2m 5.2%
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Adjusted EBITDA(1) GBP13.8m GBP8.4m 64.3%
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Adjusted EBITDA margin 16.4% 10.5% 5.9pp
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Adjusted EBITA(2) GBP2.1m (GBP4.5m) GBP6.6m
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Adjusted EBITA margin 2.5% (5.6%) 8.1pp
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Net debt (GBP225.8m) (GBP226.3m) GBP0.5m
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Financial Highlights for the quarter
-- Adjusted EBITDA growth of 64.3%
o Rental revenue growth and cost initiatives improved margins by
5.9pp to 16.4%
o LTM Adjusted EBITDA of GBP54.3m
-- Revenue growth of 5.2%
o Underlying revenue growth greater than 8%
o Underlying core rental revenue growth greater than 4%
o Continued strength in Services with revenue +14.5% and
contribution +55.0%
-- Net leverage reduced to 4.2x (FY17: 4.8x)
o Net debt has reduced by GBP6.9m since the year end
o Cash and facility headroom greater than GBP30m as at 31 March
2018
Current Trading and Outlook
-- Trading momentum continued into April
o LTM EBITDA increased to c.GBP57m
o Underlying revenue growth greater than 7%
o Underlying core rental revenue growth c.3%
-- Network has been reconfigured
o Smooth implementation of new supply chain model delivering
annualised savings of c.GBP11m
-- Reducing Group leverage remains a key focus
o Net leverage reduced to 4.0x by end of April
o Board remains fully focused on refinancing the Group's debt
facilities during 2018
o Looking forward, we expect net leverage to reduce to 3.2x
following the implementation of the identified strategic
actions
Steve Ashmore, Chief Executive Officer of HSS Hire, said:
"We have started 2018 positively and our recovery is now well
established and gaining momentum. The business is trading well
delivering adjusted EBITDA that is materially higher than the prior
year and driving margin progress through cost savings and growth in
core rental revenue.
I am particularly pleased with the progress we are making on our
strategic priorities. At the beginning of April we moved to the new
distribution model, a significant operational change which was
delivered flawlessly and is now well embedded. This significant
change will not only deliver long term cost savings but also enable
us to better serve our customers.
Looking ahead, we are encouraged by the positive trend in
trading and remain focused on our strategic priorities so that the
business can deliver on its full potential."
Notes
1) Adjusted EBITDA is defined as operating profit before
depreciation, amortisation, and exceptional items. For this purpose
depreciation includes the net book value of hire stock losses and
write offs, and the net book value of other fixed asset disposals
less the proceeds on those disposals.
2) Adjusted EBITA is defined as operating profit before
amortisation and exceptional items
-Ends-
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.
For further information, please contact:
HSS Hire Group plc Tel: 020 3757 9248 (on 24(th)
May 2018)
Steve Ashmore, Chief Executive Thereafter, please email: Investors@hss.com
Officer
Paul Quested, Chief Financial
Officer
Jonathan Edwards, Investor Relations,
Treasury and Special Projects
Manager
Teneo Blue Rubicon Tel: 020 3757 9248
Robert Morgan
Shona Buchanan
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END
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