HSS Hire looks to beat earnings expectations after supply chain overhaul

Tool and equipment hire company HSS Hire said on Wednesday that its full-year earnings should be “marginally ahead” of market expectations after third-quarter revenue rose.

For the three months ended 30 September, revenue increased by 4.5% to £93.6m compared to the same period a year ago, as sales and the strength of seasonal product ranges drove growth.

Increased product availability and hire efficiency have also been achieved courtesy of changes to the London-listed company’s supply chain model, with strategic cost initiatives reported to be on track to realise approximately £14m in savings.

Steve Ashmore, chief executive of HSS Hire, said: "I am pleased to report another good quarter with continued positive trading. Strong delivery against our strategic priorities has enabled us to achieve profitable growth and a further reduction in leverage."

EBITDA jumped by 24% to £22.2m during the quarter and the company reported that the good trading momentum has continued in the first seven weeks of the fourth quarter, driving confidence that it can beat full-year expectations.

"It's been a year of important change at HSS and we have made a significant number of operational and strategic decisions, which are beginning to show tangible results. We look ahead with confidence with the company now operating with a more sustainable cost base, enabling us to drive profitable growth as we strengthen our commercial proposition and realise benefits resulting from greater focus on our Tool Hire business," said Ashmore.

HSS Hire’s share were up 2.88% at 33.50p at 1632 GMT.