HSS Hire sees FY in line with market views as Q1 profit grows
Tool and equipment hire company HSS Hire posted growth in profit and revenue for the first quarter on Thursday as it said earnings for the year should be in line with market expectations.
In the 13 weeks to 30 March, adjusted earnings before interest, taxes, depreciation and amortisation rose 18.6% to £13.1m while revenue pushed up 6.5% to £82.2m. Within that, like-for-like revenue from the rental segment increased 1.5%, while revenue from the services business was 8% higher.
The company said it had achieved a reduction in debt leverage to 2.9x from 4.2x in the first quarter of last year, thanks to improved trading and the disposal of the UK platforms business.
HSS said trading for the first seven weeks of the second quarter was in line with expectations and it expects full-year EBITDA to be in line with market views.
Chief executive officer Steve Ashmore said: "As we set out in April the next phase of our strategy is focused on strengthening our customer proposition. We are pleased with the reaction to the recent launch of the customer app in our rental business and the transformation of our OneCall Rehire business is proceeding to plan.
"While the broader economic outlook remains uncertain, our leaner operating model, excellent market positions and clear strategy leave us well placed to continue to grow share in any market."
At 1440 BST, the shares were up 3.9% at 37p.