TIDMHSS
RNS Number : 4516N
HSS Hire Group PLC
30 September 2021
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
HSS Hire Group Plc
Sale of All Seasons Hire Limited
HSS announces that it has entered into an unconditional
agreement to sell All Seasons Hire Limited ("ASH"), the Group's
heating, ventilation and air-conditioning ("HVAC") hire solution
provider, to Cross Rental Services ("CRS") for a cash consideration
of GBP55million (the "Disposal"). The proceeds from the Disposal
will principally be used to accelerate the repayment of debt.
Following the Disposal, leverage will significantly decrease to
around 1.0x on a non-IFRS16, LTM(1) pro-forma basis as at 3 July
2021 (FY 2020: 2.6x), materially strengthening the Group's balance
sheet and marking the completion of one of the Board's three
strategic goals: to Delever the Group. This balance sheet strength
is expected to enable the Group to refinance its current facilities
on attractive terms, supporting improved free cash flow
generation.
The Board believe that the Disposal represents an attractive
valuation for shareholders. Furthermore, as part of this
transaction, HSS has entered into a commercial agreement with CRS
for the cross-hire of HVAC equipment and services to ensure the
broadest possible distribution of, and customer access to, both
parties existing fleets. This follows the successful implementation
of a similar commercial agreement following the disposal of the
Group's Aerial Work Platform business to Nationwide Platforms
Limited in 2019.
ASH represented GBP18m of Group revenues and GBP6m of Group
operating profit for the year ended 26 December 2020.
Steve Ashmore, Chief Executive, commented:
"Over the last four years HSS has undergone a radical
transformation to become a modern, agile, digitally-driven
business. During this time, we have continued to deliver against
the strategic goals we set out in 2017 - to Delever the Group,
Transform the Tool Hire business, and Strengthen our Commercial
proposition - and today's announcement marks the completion of one
of these goals. With leverage at around 1.0x post this disposal, we
have materially exceeded our previously stated targets. Going
forward the Group will target leverage remaining between
1.0-1.5x.
ASH has made an important contribution to the Group over recent
years and I would like to thank the team for their commitment. I am
very pleased that the business will be joining Cross Rental
Services, who recognise its value and will help it reach its full
potential. HSS will continue to work with ASH to provide our UK
customers with all of their larger scale HVAC hire
requirements.
With a substantial reduction in net debt and a strong balance
sheet, we are now positioned to refinance on attractive terms,
improving sustainable cash flow and supporting our growth. We will
continue to focus on our digital capabilities and differentiated
customer proposition. Our strategy is delivering for all
stakeholders and we look forward to a strong and healthy future for
HSS."
Notes
1) For the Group's continuing operations
-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
About HSS Hire
HSS Hire Group plc provides tool and equipment hire and related
services in the UK and Ireland through a nationwide network and its
OneCall rehire business. It offers a one-stop-shop for all
equipment through a combination of its complementary rental and
rehire business to a diverse, predominantly B2B customer base
serving a range of end markets and activities. Over 90% of its
revenues come from business customers. HSS is listed on the AIM
Market of the London Stock Exchange. For more information please
see www.hsshiregroup.com.
About All Seasons Hire
All Seasons Hire Limited ("ASH") is one of the UK's leading
heating, ventilation and air-conditioning ("HVAC") hire companies.
ASH specialises in the supply and installation of temporary,
large-scale heating and cooling equipment, including emergency
boilers, across a wide range of customer segments and end markets.
ASH was acquired in 2015 for a total cash consideration of
GBP11.4m. As at 26 December 2020 ASH had total gross assets of
GBP12.6m and made a profit before tax of GBP4.9m for the year ended
26 December 2020.
About Cross Rental Services
Cross Rental Services is a market leading HVAC and Refrigeration
rental specialist, providing mission-critical cooling and heating
equipment to an extensive B2B client base across the UK and
Ireland. The business comprises two divisions: Climate Control
Solutions ('CCS') and Refrigeration & Catering Solutions
('R&CS'). The CCS division provides a large base of blue-chip
customers with heating and cooling services, focusing primarily on
chillers, boilers, heaters, and air-conditioning, with a
specialisation in technically complex products which are used for
high-criticality applications. The R&CS division provides a
fully managed turn-key service for a range of commercial
refrigeration and catering assets, with a market leading position
for long-term retail refrigeration rental in the UK and
Ireland.
For further information, please contact:
HSS Hire Group plc Tel: 07557 491 860 (on 30 September
2021)
Steve Ashmore, Chief Executive Thereafter, please email: Investors@hss.com
Officer
Paul Quested, Chief Financial
Officer
Greig Thomas, Head of Group
Finance
Teneo
Tom Davies Tel: 07557 491 860
Charles Armitstead Tel: 07703 330 269
Numis Securities (Nominated Adviser Tel: 020 7260 1000
and Broker)
Stuart Skinner
George Price
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DISBRGDCIGDDGBC
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
Hss Hire (LSE:HSS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hss Hire (LSE:HSS)
Historical Stock Chart
From Apr 2023 to Apr 2024
