HSS Hire Group PLC Pre-close Trading Update (5874R)
RNS Number : 5874R
HSS Hire Group PLC
02 March 2023
2 March 2023
HSS Hire Group Plc
Pre-close Trading Update
"Double digit growth, momentum continuing into 2023"
HSS Hire Group plc ("HSS" or the "Group") provides the following
trading update ahead of its results for the full year 2022,
expected to be announced in April 2023.
The Group's capital-light, technology-led operating model has
delivered strong growth in 2022. Unaudited like-for-like(1)
revenues were approximately 10% ahead of the prior year, driven by
good results through our Rental business and the continued
excellent performance of our Services business.
As a result, Adjusted EBITA(2) for the full year is now expected
to be marginally ahead of market expectations. Strong cash
generation has resulted in net debt leverage on a non-IFR16 basis
remaining below 1.0x.
Following the successful legal restructuring of the Group in
2022, strategy implementation across both HSS ProService(3) and HSS
Operations(3) is progressing well.
Delivery of HSS ProService's technology roadmap remains ahead of
plan. Our initial rollout has seen four large customers
successfully transition to our self-service platform, HSS Pro. This
enables our customers to manage all their hire requirements in one
place, therefore significantly improving efficiency for both
customers and HSS. With positive results and strong customer
feedback to date, we have a healthy pipeline of customers to roll
this platform out to over the coming year.
Trading momentum, underpinned by effective strategy execution,
has continued into 2023 with like-for-like revenue growth for the
first 8 weeks of c12%.
Steve Ashmore, Chief Executive, commented:
"We are extremely pleased with the progress made in 2022, both
in terms of financial performance and the implementation of our
technology roadmap. Our strong focus on execution continues to
underpin our momentum with a very positive start to the new
financial year. While we remain mindful of the macroeconomic
environment, HSS is well positioned for the year ahead."
1) Like-for-like performance excludes the impact of the
following in 2021: additional week's trading and non-recurring
COVID related benefits.
2) Adjusted EBITA is defined as operating profit before amortisation, and exceptional items.
3) HSS ProService targets customer acquisition and enquiry
conversion while HSS Operations focusses on fulfilment and
HSS Hire Group plc Tel: 020 3757 9248
Steve Ashmore, Chief Executive Officer Email: Investors@hss.com
Paul Quested, Chief Financial Officer
Numis Securities Tel: 020 7260 1000
Stuart Skinner / George Price
Teneo (Public Relations Adviser) Tel: 07557 491860
Tom Davies / Charles Armitstead
Notes to editors:
HSS Hire Group plc provides tool and equipment hire and related
services in the UK and Ireland through a nationwide network and its
extensive supply chain of rehire partners. It offers a
one-stop-shop for all equipment through a combination of its
complementary Rental and Services businesses 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 .
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.
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(END) Dow Jones Newswires
March 02, 2023 02:00 ET (07:00 GMT)
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