Hss Hire Share Discussion Threads

[2pigshit] 12/3/2024 14:59

You do wig or you wouldn't be here
I'll bet even the chairman can't believe what's happening hete

[wigwammer] 12/3/2024 14:39

Maybe. Tell someone who gives a sh1t

[2pigshit] 12/3/2024 13:10

Hey wigwammer if they're burning a million a month as you say which will probably. get worse by the time it picks up and how long is a peice of string this will probably ly be gone

[fevertreeman] 12/3/2024 12:46

One way to view Plant Hire sale is that if things really are dire out there which the update suggests not, then by raising cash this way HSS have spared s/holders a dilutive equity raise

[fevertreeman] 12/3/2024 12:42

Only 2 s/holders count here: Exponent (the VC that floated it originally) and Ravensworth (upped its stake recently to c27pc) With 60% of the equity they call the shots.So far they've appeared supportive of the management team. I think that s/o is selling down/trimming positions which isn't helping the sp, but fundamentally this is a good business that will turn once the markets turn. Don't forget it's been a hellish period for cyclical business like this: Brexit, Pandemic, Ukraine, Inflation, Interest rates rises, and UK flirting with recession. We all know the sector is soft (VP/Speedy in agreement)so taking positive action to improve balance sheet makes good sense to me. They've gota decent price for a plant hire business that ties up capex, and done a deal to retain access to a portion of the revenues.

[2pigshit] 12/3/2024 08:33

Already read that wig tell us something new.

[wigwammer] 12/3/2024 08:20

"HSS confirms that trading for 2023 was in line with market expectations with year-on-year revenue growth of 5%. Whilst we have continued to see some demand softness in certain customer segments, implementation of the Group's marketplace proposition is progressing well with self-service platform adoption accelerating with around 650 customers now having transacted on the platform. The Board remain confident that this transformational strategy positions the Group well to take full advantage of the market when it recovers. HSS will report 2023 full year results during May 2024."

[scepticalinvestor] 12/3/2024 07:59

TU a tad late this year. No change to forecastsI assume?

[2pigshit] 11/3/2024 15:32

Another consistent large sell it can only be one of the big boys there ain't many small ones left

[philmac56] 11/3/2024 10:50

I've never known so much activity on the BBC.

Fingers crossed we seen the bottom, with a move north from now on!?

Gla

[mjneish] 11/3/2024 10:22

This ought to cut costs as well.

Since 2020, one part of HSS Hire’s wider strategy has been to reorganise its network, removing a sizeable number of its own locations and developing a model of ‘implants’ within builders’ merchant branches. Allowing the rental specialist to reduce its costs, the format is said to offer significant benefits to merchants by opening new revenue streams from their existing customers with limited outlay whilst being able to leverage HSS Hire’s expertise, brand reach, logistics, support services and buying power.

[wigwammer] 10/3/2024 21:47

In fairness, I think p1gsgit has a fair point. There is an angle that justifies the fall in price. The company appears to be leaking cash over the last 8 months - about a million a month - see my post below starting "something to consider". The judgement call is whether they now have the balance sheet strength to get through to recovery. If so, we know from the 2022 results that they have the scale and capacity to drive a sizeable recovery, and little reason why the enterprise value cannot see a return to historic levels as profitability recovers. Imo ATB

[mjneish] 10/3/2024 12:16

Thanks for engaging wigwammer, even though somehow I doubt that people are coming here to have their investment decisions swayed by a semi-literate, anonymous poster named after porcine excrement. It's reminding the rest of us of some basic facts.

[2pigshit] 10/3/2024 11:54

There was SIGNIFICANT day to day trading in h2 and CONSIDERABLE downturn in trading but still in line to make it the second best year ever 23 30 mill profit Oct statent
This yrars update trading in line so if and only if it is then maybe the share price could increase to about 13p but a tall ask with consistent large sells by whoever

[wigwammer] 10/3/2024 07:22

"They sold all the parts that made the money." You should take your own advice and read the reports. Turnover in 2022 (the last full year reported period) was around 95% of what it was in 2019, and operating cash flow almost identical at around £40m. They have evidently divested parts and grown others.

[baddeal] 09/3/2024 23:44

Why would ev revert to where it was 5 years ago? They sold all the parts that made the money!

[wigwammer] 09/3/2024 18:11

Something to consider. We know they had £49m of pre ifrs16 net debt at end June 2023. And we know they have around £60m net debt now (£37m net debt post disposal + £23m disposal receipts). - so there has been a material cash outflow over the last 8 months. Things evidently not great currently, but receipts should give them breathing space.

[wigwammer] 09/3/2024 17:45

Hi dealy. Last 52 week period showed £330m group revs and £26m op profit. We know the power unit constituted around £34m revs and £6m op profit. Net debt post divestment down to £37m. ATB

[dealy] 09/3/2024 15:46

Hi Wig,What does the business look like after this week's disposal in terms of revenue and Ebitda and net debt ?

[wigwammer] 09/3/2024 13:00

Broad director participation in the 2020 cash raise too... Market cap circa £60m - similar to 4/5 years ago and business has a similar quality and scale. But net debt now £200m lower. If we see a reversion to the historic enterprise value then HSS shares will multiply - that £200m is worth around 30p on the shares... Really interesting at this level. ATB