Hss Hire Share Discussion Threads

[2pigshit] 09/3/2024 10:38

Wot was the share price in 2019 I rest my case

[qs99] 09/3/2024 09:08

wigwammer, great post thanks

[wigwammer] 09/3/2024 08:47

So I went back and read the reports, and sure enough, the debt has NOT all been paid off by selling assets. Over the last 4 reported years (2019-2022) debt has been repaid through a combination of selling assets (£107m), raising cash (£52m) and free cash generation (around £35m). That £35m was achieved despite the covid affected years, and represents around 60% of the current market cap. Turnover is currently around 90% of what it was in 2019 and net operating cash flow about flat at £40m. So if they have sold assets, they have been growing elsewhere. So as an operating business they have a similar size to 2019, but the enterprise value has fallen as net debt has dropped and the equity price fallen. Quite a different story to the one painted by some here. Would be good to see more management purchases.

[baddeal] 08/3/2024 22:48

Well they've spent the last 5-6 years selling off the best parts of the group. That seems to be as quickly as they could.

[baddeal] 08/3/2024 22:47

Yes they retain some of the revenue but not at the same margin. They now pay ces to cross hire that equipment so margins will be much lower on the 20m than previously reported

[2pigshit] 08/3/2024 20:29

If they wanted to cut down on debt why didn't they do it sooner something g stinks here.it seems to me somethings happening with the institutional investors

[mjneish] 08/3/2024 19:10

This is what the company wrote about the sale:

Power represented £34 million of Group revenues and £6 million of Group operating profit for the year ended 31 December 2022. Around £20 million of this revenue was through the Group's marketplace business which will continue to be provided under the commercial agreement [with CES].

So they retain £20 million of the £34 million that the business was generating, even after selling it off.

[baddeal] 08/3/2024 15:20

Well go and read the reports and see for yourself. This business has rarely generated free cashflow. It has now sold off the business which had the largest fcf generating capability - platforms, power and heating/cooling.Let's see what ebitda they can now generate with what's left, deduct the required annual capex, interest etc and see what the fcf really is

[dealy] 08/3/2024 14:06

another disastrous stock for investors. The UK market is littered with stocks like this, e.g. Capita, Petrofac, Metro Bank. All down 95% over the last 8 years. Symptoms are generally the same: too much debt and no profit

[wigwammer] 08/3/2024 13:44

No. The point was that the debt has been repaid by selling assets, not through profit. So I'll ask again - has the company really never made a profit or generated free cash to contribute to debt reduction?

[2pigshit] 08/3/2024 13:32

This financial year the point is lok at the share price and it will go down further

[wigwammer] 08/3/2024 13:13

Really? So HSS has never generated a profit, or associated free cash flow?

[2pigshit] 08/3/2024 12:53

Just my opinion I reckon there may have been a breach of covenant without this money very difficult to see any profit this year and no dividend

[philmac56] 08/3/2024 10:49

Well the markets don't like it

[2pigshit] 08/3/2024 09:38

The assets they just sold made 6million approx 30 percent of profits

[baddeal] 08/3/2024 09:33

All the debt has been repaid by selling off assets not making profits!

[wigwammer] 08/3/2024 08:11

Interesting mjneish. I guess you don't repay debt like that unless you make pretty material profits.

[2pigshit] 07/3/2024 20:36

14mil + 6mil = 20mm

[baddeal] 07/3/2024 20:26

To be fair if you actually read the rns in full you'll see they say 20m

[2pigshit] 07/3/2024 18:47

That's good mjneish but 38mm of sales producing 6mil profit the other 300 mil only produced 14 mil they are making an habit of selling off assets producing good profit where will it end

[mjneish] 07/3/2024 18:18

HSS's journey towards reducing net debt.

YE 2016: £219.4m
YE 2017: £223.4m
YE 2018: £235.6m
YE 2019: £179.5m
YE 2020: £120.4m
YE 2021: £45.4m
YE 2022: £41.5m

[baddeal] 07/3/2024 17:08

It won't they'll need to buy new generators, most of the ones abird has are old as HSS hadn't updated the fleet since about 2017

[2pigshit] 07/3/2024 15:39

So if commercial profit stays the same for ces they will get there money back in 4 years what a steal should have been at least 47 million