ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

HSS Hss Hire Group Plc

5.42
-0.28 (-4.91%)
Last Updated: 14:27:50
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Hss Hire Group Plc LSE:HSS London Ordinary Share GB00BVFD4645 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.28 -4.91% 5.42 5.42 5.98 5.42 5.42 5.42 88,031 14:27:50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Equip Rental & Leasing, Nec 349.11M 4.24M 0.0060 9.03 40.52M

HSS Hire Group PLC Results for the 26 week period ended 29 June 2024

24/09/2024 7:00am

RNS Regulatory News


RNS Number : 3264F
HSS Hire Group PLC
24 September 2024
 

HSS Hire Group Plc

Solid performance, launching next phase of strategy

HSS Hire Group plc ("HSS" or the "Group") today announces results for the 26 week period ended 29 June 2024.

Next phase of strategy being implemented to separate the management and trading operations of HSS ProService and HSS Operations to allow each business to pursue different but complementary growth objectives to maximise shareholder value

Financial Highlights (Unaudited)

Continuing operations 1

H1 2024

 

(26 weeks to 29

 

June 2024)

H1 2023

 

(26 weeks to 1 July

 

2023)

Change

Revenue

£170.8m

£165.6m

3.2%

Adjusted EBITDA2

£26.9m

£28.9m

£(2.0)m

Adjusted EBITA3

£7.3m

£10.8m

£(3.5)m

Adjusted profit before tax4

£1.2m

£5.0m

£(3.8)m

Adjusted basic EPS

0.13p

0.55p

(0.42)p

ROCE5

14.9%

18.0%

(3.1)pp

Net debt leverage6 - non IFRS16

1.0x

1.0x6

-x

Net debt leverage7 - IFRS16

1.5x

1.6x7

0.1x

Operating profit (Underlying8)

£6.2m

£9.9m

£(3.7)m

Profit before tax (Underlying8)

£1.2m

£5.0m

£(3.8)m

 

 

Solid performance, strong balance sheet

 

·      Solid revenue performance in challenging markets with H1 24 revenue growth +3.2%

HSS ProService ("ProService") marketplace business like for like growth of 3.4%, ahead of market9, with double digit Services10 increase somewhat offset by seasonal product11 weakness 

HSS Operations ("Operations") maintained utilisation at 56% through efficient fleet management

 

·      Seasonal product weakness impacted H1 24 profitability

Adjusted EBITDA and EBITA excluding this impact broadly in line with H1 23

Targeted cost action creating operational efficiency to mitigate demand softness in certain end markets

Continued strong returns with ROCE above the Group's cost of capital

 

·      Robust balance sheet with non-IFRS16 leverage6 maintained at 1.0x (H1 23: 1.0x)

Net proceeds of £20m from sale of Power businesses used to reduce debt and further strengthen the Group balance sheet

HSS continues to deliver consistently high returns ahead of cost of capital

Material liquidity headroom of £75m to support ongoing strategy development

 

·      Interim dividend maintained at 0.18 pence per share12

 

Continued strategic momentum, launching next phase of strategy

 

·      Following legal separation of ProService and Operations in 2022 as previously announced, the commercial and operational activities of each entity will now be fully separated

·      Each business will now pursue complementary growth strategies with separate management teams and greater control over resources and investment decisions

 

·      ProService:

·      Digital marketplace business for building services focussed on buyer and seller acquisition across a broad range of products and services

·      Marketplace growth strategy building momentum with over 2,200 buyers having now transacted on our self-service marketplace platform, resulting in 38% average buyer revenue growth year-on-year

·      Medium term target of 7,000 buyers transacting through our marketplace

 

·      Operations:

·      Well-invested asset-owning independent tool hire business in the UK and Ireland focussed on delivering a consistently high-quality service combined with unlocking ongoing efficiency gains

·      Low-cost builders merchant network expanded to 104 locations delivering 13% growth on a same stores basis13

·      Medium term target of over 150 trading locations

 

·      The Board believes that this structure provides greater optionality to maximise future value for shareholders

 

·      Capital Markets Days planned for each business during 2025 when the management teams will present their individual growth strategies and market opportunities.

 

 

Current trading

·      While a continued weakness in seasonal products has led to a more challenging start to H2 2024, we are somewhat encouraged by lead macroeconomic indicators for UK construction beginning to trend in a positive direction. Both our businesses are positively positioned to capitalise on improving markets and we shortly expect to mobilise on a number of large accounts won over the summer.

 

Steve Ashmore, Chief Executive Officer, said:

 

"The Group delivered a solid first-half performance against a challenging market backdrop, with above-market growth in our ProService marketplace business and continued good utilisation in Operations.

 

Today we are meaningfully progressing our growth strategy with the announcement of the commercial and operational separation of ProService and Operations. This will enable each business to pursue complementary growth strategies under independent leadership teams with greater control over resources and investment decisions.

 

Looking ahead, we are well placed to capitalise on any change to market conditions and in the meantime have a number of new contracts mobilising in H2. However, as a result of the new Group structure and the period of transition that this will involve, the Board believes it is prudent to remove guidance until further notice.

 

The Board and I are excited about this next stage in the development of our strategy, which we are confident will fully unlock the growth potential of each business and provide greater optionality to maximise future value for shareholders."

 

H1 24 Results Presentation

HSS Hire Group Plc will host a virtual presentation for analysts at 9:00am on 24 September 2024. Analysts wishing to attend should contact FTI Consulting to register - Connie.Gibson@fticonsulting.com

An audio recording will be available on our website in due course.

 

Notes

1)     Results for H1 24 and H1 23 are on a continuing operations basis, excluding the Power businesses which were disposed of in March 2024.

2)     Adjusted EBITDA is defined as operating profit before depreciation, amortisation, and exceptional items. For this purpose, depreciation includes the net book value of hire stock losses and write offs, and the net book value of other fixed asset disposals less the proceeds on those disposals

3)     Adjusted EBITA defined as Adjusted EBITDA less depreciation

4)     Adjusted Profit before tax defined as profit before tax excluding amortisation of brand and customer lists and exceptional items

5)     ROCE is calculated as Adjusted EBITA for the 52 weeks to 29 June 2024 divided by the average of total assets less current liabilities (excluding intangible assets, cash and debt items) over the same period

6)     Non-IFRS16 leverage is calculated as closing net debt excluding non-hire equipment leases divided by adjusted EBITDA less right of use depreciation and interest on non-hire equipment for the 52 weeks to 29 June 2024 (prior year 52 weeks to 1 July 2023). Comparators on a reported basis with no pro-forma adjustments to reflect the disposal of the Power businesses.

7)     IFRS16 leverage is calculated as closing net debt divided by adjusted EBITDA for the 52 weeks to 29 June 2024 (prior year 52 weeks to 1 July 2023). Comparators on a reported basis with no pro-forma adjustments to reflect the disposal of the Power businesses.

8)     Performance excluding exceptional items

9)     European Rental Association forecast +2.7%

10)   Services relates to rehire income generated from third-party owned assets and the Training product vertical as historically presented in operating segments

11)   Seasonal products include Heating and Air Conditioning assets

12)   All dividends will be paid in cash and no scrip dividend, other dividend reinvestment plan or scheme or currency election will be offered to shareholders. Ex-dividend date of 3rd October 2024, record date of 4th October 2024 and payment date of 6th November 2024.

13)   Merchant locations open for comparable period in both H1 24 and H1 23

 

 

 

Disclaimer:

 

This announcement has been prepared solely to provide additional information to shareholders and meets the relevant requirements of the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. This announcement should not be relied on by any other party or for any other purpose.

 

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.

 

Notes to editors

HSS Hire Group plc operates through two separate but complimentary businesses serving predominately business customers:

 

·      HSS ProService is the leading Digital marketplace business focussed on buyer and seller acquisition. Technology driven, scalable and uniquely differentiated. Wide range of building services, including hire, resale, materials, training and more

 

·      HSS Operations, which includes HSS Ireland, provides tool and equipment hire and related services in the UK and Ireland through a nationwide network of Group companies and third-party suppliers. It offers a one-stop shop for all equipment through a combination of its complementary rental and re-hire business to a diverse, predominantly B2B customer base serving a range of end markets and activities.

 

HSS is listed on the AIM Market of the London Stock Exchange. For more information, please see www.hsshiregroup.com.

 

 

For further information, please contact:

 

HSS Hire Group plc

Tel: 020 3757 9248 (on 24 September 2024)

Steve Ashmore, Chief Executive Officer

Thereafter, please email: Investors@hss.com

Richard Jones, Interim Group Chief Financial Officer




FTI Consulting

Nick Hasell

Victoria Hayns

Tel: 020 3727 1340



Numis Securities (Nominated Adviser and Broker)

Tel: 020 7260 1000

Stuart Skinner

George Price


 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended (together, "MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of HSS is Richard Jones, Interim Group Chief Financial Officer.

 

 

 

Chief Executive Officer's Report

Summary of H1 2024 Group performance

We delivered a solid performance during the first six months of 2024 despite challenging market conditions. The warmer winter and cooler early summer weather conditions have led to significantly lower demand for seasonal products. Non-seasonal product performance, while resilient, saw subdued demand driven by low levels of end-user construction activity, particularly in housing and commercial sectors, and wetter Q2 weather also having an impact on enquiry levels.

The teams across ProService, Operations and HSS Ireland have done well to drive performance, despite these challenging markets. The price and cost actions they have taken mitigated some of the market softness and the inflationary pressures that persist. Overall, our revenue growth of 3.2% was marginally ahead of the rental market9.

Launch of the next phase of the strategy

Our strategy to create two divisions in ProService and Operations in 2022 has proved successful, with each business making material progress in recent years. The Directors believe that the ProService and Operations businesses have leading offerings independently of one another and are well positioned to take advantage of a fragmented market and to further capitalise on increasingly complex customer and supplier requirements. However, as both ProService and Operations continue to grow, the Board believes that each business, while complementary, have different growth strategies and strategic priorities.

In light of the above, the Board believes that a separation of the businesses has the potential to better unlock the value in each business and that this will provide the Board with additional optionality to maximise value for shareholders. It will also allow each business to pursue their strategic objectives independently with greater control over resources and opportunities through individually focused management teams.

As part of the new operating structure, we have established a trading agreement for Operations to provide services to ProService and maintain customer service levels during a period of transition. This is supported by a temporary services agreement to maintain continuity in back-office functions, almost all of which will sit within these respective businesses. The small Group corporate function will continue to exist, fulfilling governance and external reporting activities.

ProService

Positioning and strategy

ProService is a capital light, technology-driven marketplace which acts as a marketplace for those looking to procure and supply for the building services sector. The business is focused on leveraging its platform and first mover advantage and building on the strong momentum and growth in buyer and seller adoption.

The Board recognises the opportunities to be gained by broadening this offering, expanding the number of buyers and sellers on the platform and accessing the wider building services sector in the UK of approximately £186 billion. Our medium-term aspirations are to have a digital platform growing from the existing base of 2,200 to over 7,000 buyers using the marketplace which should allow the business to double its EBITDA margins as it benefits from operating leverage from the platform revenue growth.

ProService H1 2024 trading performance

The investment we made in our technology team during 2023 has supported material strategic and operational progress. The team delivered v2.0 of our marketplace platform, which we launched in December 2023, and during the first six months of 2024 we saw a significant acceleration in the number of buyers using this online self-service platform. To date over 2,200 buyers have registered for the marketplace and raised a contract themselves. This has been achieved primarily through promotion by our salesforce, rather than marketing spend, and is a reflection of the attractiveness of the platform offering.

26% of all contracts in H1 24 were originated through our self-serve technology platforms: ProService Marketplace and HSS.com, compared to 15% in H1 23.

The training vertical continues to perform well achieving 20% year-on-year growth. The training market continues to be supported by tightening legislative and Health & Safety drivers, supporting growth in demand from all buyer markets. Our extensive network of over 240 training sellers, offering a wide range of training solutions on our platform, complements our in-house provision of technical training, combining to offer buyers a market-leading one-stop-shop training proposition.

The two new verticals, building materials and equipment sales, that we launched in 2023 continue to show robust levels of demand despite challenging markets, with revenue in these verticals, having doubled year-on-year.  

 

Operations

Positioning and strategy

Operations is a leading fulfilment business in the UK and Ireland focussed on service delivery, health & safety and quality, with comprehensive coverage across a wide range of tools, low-level powered access and site equipment. It has a well invested asset base and has consistently demonstrated growth ahead of the market. The business has delivered high levels of customer service whilst striving for ongoing efficiency gains, underpinned by expansion of its national network and progress on carbon reduction.

 

Our medium-term aspirations in the UK are to expand our network of trading locations to over 150 and to continue to deliver above market revenue growth whilst maintaining ROCE above our cost of capital.

 

In the Republic of Ireland, HSS is well placed to capitalise in the growth in key markets such as the construction of data centres.

Operations H1 2024 trading performance

We have continued to expand our low-cost builders merchant network, adding a further 10 locations during the first six months of 2024, bringing our total network to 98 at June 2024 (June 2023: 67). A further six have been opened since the period-end. We are pleased with the continued growth in revenues from these locations, with year-on-year growth of 13% on a same-stores like-for-like basis. We currently have plans to open a further ten locations this year and medium-term aspirations for a 150-location national network.

Our route optimisation software, Satalia, continues to optimise vehicle productivity and minimise our carbon footprint. The Digital Service Portal technology we are using in our workshops continues to improve process adherence and drive equipment quality. In addition, we are currently trialling new bar-coding technology, aimed at improving stock availability and enhancing the digital information available to customers.

Health & Safety continues to be top of the agenda amongst our operational teams. They have been promoting three basics of safety this year: following training procedures, wearing the correct PPE for the job and calling out unsafe behaviours. Colleagues have made more than 9,400 safety observations this year and our All-Injury Frequency Rate (AIFR) has reduced from 3.22 in H1 last year to 2.74 in H1 this year. Whilst the number of RIDDORS has increased from 1 to 4 over the same period, I would note that the additional incidents became RIDDORS on the basis of extended lost time, rather than on the basis of the severity of the injury.

Board and people

From the end of September, as part of the new structure, I will take the role of Executive Chairman for ProService and while I remain on the PLC Board as an Executive Director, I will no longer serve as Chief Executive Officer. Alan Peterson OBE will become non-Executive Chairman of Operations and HSS Ireland and will retain his role as non-Executive Chair of the PLC Board. Other than the impending departure of Amanda Burton from the Board announced earlier today, the Board will therefore remain unchanged.

I am also pleased to announce the appointments of Jon Overman and Tom Shorten into the roles of CEO for Operations and ProService respectively. They have each appointed CFOs and CROs for each business including both internal and external hires into these new roles. Both leadership teams are now at full strength and both businesses have strong independent ambitions.

Michael Killeen will continue to run HSS Ireland which is the market-leading rental operator in the Republic of Ireland, and which is already independently self-sufficient, with only limited support required from Group functions.

As previously announced, Paul Quested stepped down from his role as Group CFO at the end of August 2024, with Richard Jones joining as Interim CFO earlier in August.

 

ESG Progress

The entire Group has continued to make progress on our ESG roadmap. We have recently published our 3rd ESG Impact report, which outlines our performance against our targets. We have also completed a Biodiversity impact assessment, publishing the results in out first ever Sites Biodiversity Report. Both new reports are available at www.hsshiregroup.com. We are proud to maintain our Ecovadis Gold Sustainability Rating and look forward to our reassessment later this year. Our ProService team have enhanced our marketplace platform to provide customers with more information on the ESG credentials of different products, allowing them to make better informed choices. They have also enhanced the customer carbon reporting available via the marketplace.

 

Summary

We expect there to be a period of significant transition over the next 6-12 months as we implement change across the Group. Both businesses will need to settle into new team structures and adapt to new ways of working. There will also be changes to systems and processes, most notably in ProService who will be implementing a new ERP system so that it can migrate from the legacy HSS Hire systems. There will also be some optimisation of routes to market and some bedding in of the trading agreement, alongside some temporary double-running of costs and some exceptional costs.

As a result of this period of change, we believe it is prudent to remove guidance for the foreseeable future. We will regularly review the timing with which we will reinstate guidance and provide visibility of our revised expectations at the earliest opportunity. Irrespective of any recovery in market conditions I am confident the business will show further resilience, as it continues to benefit from the broad spectrum of customers we serve and the wide range of products and services we offer. The ongoing strength of our balance sheet makes us well positioned to address any ongoing market challenges, whilst also providing the opportunity to invest in a recovering market.

 

H1 2024 Group Financial Performance

Revenue and segmental contribution

The H1 2024 results are based on 26 weeks of trading, consistent with H1 2023. Both the current and comparator financials are presented on a continuing operations basis, excluding the Power businesses which were disposed of in March 2024. Segmental analysis is based on a consistent basis with FY 2023 but prior to the impact of the separation of the two businesses which is due to take effect from the end of September 2024.

Revenue in H1 2024 was £170.8m, an increase of £5.2m, or 3.2% higher than the previous period (H1 2023: £165.6m), a resilient trading performance given the challenging macro-environment with demand softness in certain end markets and weakness in seasonal product performance due to the mild winter and summer.

ProService revenue increased 3.4% to £156.8m (H1 2023: £151.6m) with growth primarily from rehire of third-party rental fleet and increased resale contracts, reflective of continued demand for the one-stop-shop offering.  Operations UK revenues decreased 8.7% to £49.3m (H1 2023: £54.0m) impacted by softness from certain markets such as housing, RMI (repairs, maintenance and improvements) and fit-out and weak seasonal performance which declined 23% compared to H1 2023. On a consistent foreign exchange basis, HSS Ireland revenue grew 1.1% (reported basis down 1.3%). The Central segment represents the elimination of intercompany revenue between Operations and ProService.

Costs

Cost of sales increased to £94.7m during the period (H1 2023: £85.8m) driven by the growth of third party rehire and resale revenue.

Distribution costs decreased by 3.1% to £13.6m (H1 2023: £14.0m) reflecting the continuing tight control of costs and operational efficiency gains, enabling greater flexibility as volumes change, offsetting inflationary pressures.

Administrative expenses increased by £1.2m to £55.6m (H1 2023: £54.4m). In addition to labour inflation, ongoing costs were incurred relating to the operating of the ProService Marketplace Platform being expensed (£0.8m). There has been a corresponding reduction in the software capitalisation as developers increasingly focus on maintenance activities associated with the recently developed infrastructure.

Adjusted EBITDA and Adjusted EBITA

Adjusted EBITDA reduced £2.0m to £26.9m (H1 2023: £28.9m), principally due to the revenue mix, compounded by the seasonal product performance, and increased technology costs as we invest to support the long-term growth of the business.

Adjusted EBITA decreased £3.5m to £7.3m (H1 2023: £10.8m) with an increase in property right of use depreciation arising from increases as rent review negotiations are concluded.

Operating Profit

The reduction in adjusted EBITA flowed through to operating profit which decreased £3.7m to £6.2m (H1 2023: £9.9m) with the increase in the variance linked to higher amortisation associated with the investment in ProService's marketplace technology.

This resulted in adjusted basic earnings per share (on a continuing basis) decreasing to 0.13p in H1 24 from 0.55p in the prior period. The change in the continuing basic earnings per share was 0.87p, to a loss per share of 0.21p.

Net finance expenses

Net finance expenses were £5.0m, in line with H1 2023, with the impact of increased charges due to UK base rate changes offset by a £12.5m senior facility prepayment in March 2024, utilising the proceeds from the Power businesses sale.

Exceptional items

Total exceptional items of £3.1m have been recognised in H1 2024 principally linked to the formal separation of the commercial and operational activities of ProService and Operations (£2.2m) and the financial impact of the Power businesses disposal (£0.9m).

Return on Capital Employed

ROCE on a continuing basis decreased to 14.9% from 18.0% in the prior year with the impact of seasonal product weakness resulting in an adverse impact of around 3 percentage points. 

 

Net debt

Net debt on 29 June 2024 was £88.3m, a £22.6m reduction compared to H1 2023 (£111.6m). This reduction has been primarily driven by the sale of the Power businesses in March 2024 which realised net proceeds of £20.1m alongside the removal of related hire purchase and lease liabilities. The reduction in net debt and continued strong working capital management has resulted in IFRS16 leverage decreasing to 1.5x (H1 2023: 1.6x, FY 2023: 1.7x). Non-IFRS16 leverage remained at 1.0x (H1 2023: 1.0x)

The debt facilities consist of a £57.5m senior finance facility and an undrawn revolving credit and overdraft facility of £25.0m, both maturing in November 2025. Including cash balances of £38.2m and unutilised finance lines for the expansion of hire fleet of £11.3m, the Group had liquidity headroom of £74.5m at 29 June 2024.

Dividend

The Board has decided to maintain the dividend at 0.18 pence per share despite the reduction in H1 2023 Earnings Per Share, demonstrating confidence in the company's strong balance sheet position

Going concern

At 29 June 2024, the Group's financing arrangements consisted of a drawn senior finance facility of £57.5m, an undrawn revolving credit facility of £19.0m and undrawn overdraft facilities of £6.0m. Cash at 29 June was £38.2m, providing liquidity headroom of £74.5m. Both the senior finance facility and revolving credit facility are subject to net debt leverage and interest rate cover financial covenant tests each quarter. At the reporting date the Group had significant headroom against these covenants. Since the 2023 year end, the Group has been in a position to make repayments against the senior finance facility of £12.5m and the Group has begun discussions to renew the financing, with the Directors confident that this will be achieved well in advance of the expiration date of the facility.

The Directors continue to model via a number of scenarios current macroeconomic factors such as increasing inflation. At 24 September 2024 the Group had sufficient liquidity to operate within banking covenants for the period to 30 September 2025 even under a 'reasonable worst case' scenario. The reasonable worst case scenario models lower underlying revenue performance, lowers product margins, and increases debtor days.

After reviewing the above, considering current and future developments and principal risks and uncertainties, and making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence over a period of at least twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing these unaudited condensed consolidated financial statements.

 

Risks and uncertainties

The principal risks and uncertainties that could have a material impact upon the Group's performance over the remaining 26 weeks of the 2024 financial year have not changed significantly from those described in the Group's 2023 Annual Report and are summarised in note 18 of this interim report.

Macroeconomic and strategy execution, given the scale of organisational change, have been identified as the most material risks that could impact performance and will continue to be closely monitored to ensure that appropriate actions can be taken as required.

 

Steve Ashmore

Director

24 September 2024

 

 

HSS Hire Group plc

Unaudited condensed consolidated income statement


Note

26 weeks ended
29 June 2024

26 weeks ended1
1 July 2023

Underlying

Exceptional items

(note 5)

Total

Underlying

Exceptional items

(note 5)

Total

£000s

£000s

£000s

£000s

£000s

£000s

Revenue

3

170,769

-

170,769

165,553

-

165,553

Cost of sales


(94,708)

-

(94,708)

(85,817)

-

(85,817)








-

Gross profit


76,061

-

76,061

79,736

-

79,736









Distribution costs

(13,557)

-

(13,557)

(13,990)

-

(13,990)

Administrative expenses


(55,585)

(2,298)

(57,883)

(54,408)

(209)

(54,617)

Impairment loss on trade receivables and contract assets


(870)

-

(870)

(1,422)

-

(1,422)

Other operating income

4

148

-

148

-

112

112



 

 

 




Operating profit

 

6,197

(2,298)

3,899

9,916

(97)

9,819









Net finance expense

7

(5,002)

(154)

(5,156)

(4,905)

(187)

(5,092)

(Loss)/profit on continuing operations before tax


1,195

(2,452)

(1,257)

5,011

(284)

4,727

Income tax charge


(228)

-

(228)

(50)

-

(50)

(Loss)/profit from continuing operations


967

(2,452)

(1,485)

4,961

(284)

4,677

(Loss)/profit from discontinued operations, net of tax

17

(230)

(642)

(872)

817

-

817

(Loss)/profit for the financial period


737

(3,094)

(2,357)

5,778

(284)

5,494



 

 

 




Alternative performance measures £000s






Adjusted EBITDA (note 19)

 


26,875

 


28,928

Adjusted EBITA (note 19)

 


7,289

 


10,810

Adjusted profit before tax (note 19)

 


1,195

 


5,011

 








Earnings per share for continuing operations (pence)





Adjusted basic earnings per share (note 8)

 


0.13

 


0.55

Adjusted diluted earnings per share (note 8)

 


0.13

 


0.54

Basic (loss)/earnings per share (note 8)

 


(0.21)

 


0.66

Diluted (loss)/earnings per share (note 8)

 


(0.20)

 


0.64





 

 



Continuing and discontinued operations (pence)

 

 



Basic (loss)/earnings per share (note 8)


(0.33)

 


0.78

Diltuted (loss)/earnings per share (note 8)


(0.32)

 


0.76

 

The notes form part of these condensed consolidated financial statements.

 

1.     The notes supporting the income statement have been restated to disclose continuing operations (note 2)

HSS Hire Group plc 

Unaudited condensed consolidated statement of comprehensive income

 



26 weeks ended
29 June 2024

26 weeks ended
1 July 2023



£000s

£000s





(Loss)/profit for the financial period

 

(2,357)

5,494





Items that may be reclassified to profit or loss:

 



Foreign currency translation differences arising on consolidation of foreign operations


(340)

(368)





Other comprehensive loss for the period

 

(340)

(368)





Total comprehensive (loss)/profit for the period

 

(2,697)

5,126





Attributable to owners of the Group

 

(2,697)

5,126

 

The notes form part of these condensed consolidated financial statements.

 

HSS Hire Group plc 

Unaudited condensed consolidated statement of financial position





At 29

June

2024


At 30 December

2023

 

Note


£000s

£000s

ASSETS

 




Non-current assets

 




Intangible assets

9


147,426

152,982

Property, plant and equipment



 


   - Hire equipment

10


72,535

81,191

   - Non-hire assets

10


10,825

11,992

Right of use assets



 


   - Hire equipment

11


2,281

2,592

   - Non-hire assets

11


45,623

49,219

Deferred tax asset



2,012

2,012




280,702

299,988

Current assets

 


 


Inventories



3,066

3,823

Trade and other receivables

12


79,887

93,441

Cash



38,201

31,931




121,154

129,195




 


Total assets

 


401,856

429,183




 


LIABILITIES

 


 


Current liabilities

 


 


Trade and other payables

13


82,860

85,317

Lease liabilities

14


12,891

14,548

Borrowings

15


5,047

5,545

Provisions

16


5,015

4,816




105,813

110,226




 


Non-current liabilities

 




Lease liabilities

14


39,774

42,822

Borrowings

15


67,518

79,015

Provisions

16


10,678

13,753

Deferred tax liabilities



26

182




117,996

135,772




 


Total liabilities

 


223,809

245,998




 


Net assets

 


178,047

183,185




 


EQUITY

 


 


Share capital



7,108

7,050

Share premium



45,552

45,552

Merger reserve



97,780

97,780

Foreign exchange translation reserve



(993)

(653)

Retained earnings



28,600

33,456

Total equity

 


178,047

183,185

 

The notes form part of these condensed consolidated financial statements.

 

 

HSS Hire Group plc

Unaudited condensed consolidated statement of changes in equity

 


Share capital

Share premium

Merger reserve

Foreign exchange translation reserve

Retained earnings

Total equity

 

£000s

£000s

£000s

£000s

£000s

£000s

 







At 30 December 2023

7,050

45,552

97,780

(653)

33,456

183,185

 







Loss for the period

-

-

-

-

(2,357)

(2,357)

Foreign currency translation differences arising on consolidation of foreign operations

-

-

-

(340)

-

(340)

Total comprehensive loss for the period

-

-

-

(340)

(2,357)

(2,697)

Transactions with owners recorded directly in equity

 






Share-based payment charge

-

-

-

-

239

239

Issue of shares

58

-

-

-

(58)

-

Dividends paid

-

-

-

-

(2,680)

(2,680)

At 29 June 2024

7,108

45,552

97,780

(993)

28,600

178,047

 








Share capital

Share premium

Merger reserve

Foreign exchange translation reserve

Retained earnings

Total equity


£000s

£000s

£000s

£000s

£000s

£000s








At 1 January 2023

7,050

45,552

97,780

(422)

32,503

182,463








Profit for the period

5,494

5,494

Foreign currency translation differences arising on consolidation of foreign operations

(368)

(368)

Total comprehensive profit/(loss) for the period

(368)

5,494

5,126

Transactions with owners recorded directly in equity







Share-based payment charge

82

82

At 1 July 2023

7,050

45,552

97,780

(790)

38,079

187,671








 

The notes form part of these condensed consolidated financial statements.

 

 

 

HSS Hire Group plc 

Unaudited condensed consolidated statement of cash flows


Note

26 weeks ended
29 June 2024

 

26 weeks

ended
1 July 2023



£000s

£000s



 


(Loss)/profit for the financial period

 

(2,357)

5,494

Adjustments for:




- Tax


228

45

- Amortisation

6

1,092

956

- Depreciation

6

16,903

17,881

- Accelerated depreciation relating to hire stock customer losses and hire stock write offs

6

2,536

2,808

- Lease Disposals

6

(815)

-

- Profit/(loss) on disposal of property, plant and equipment and right of use assets

6

1,001

(438)

- Capital element of net investment in sublease receipts


80

-

- Share-based payment charge


239

82

- Loss on disposal of discontinued operations


872

-

- Foreign exchange gains on operating activities


(586)

(161)

- Net finance expense

7

5,156

5,222

Changes in working capital (excluding the effects of disposals and exchange differences on consolidation):




- Inventories


(151)

(241)

- Trade and other receivables

12

9,199

617

- Trade and other payables

13

(1,676)

(9,994)

- Provisions

16

(2,537)

(1,772)

Cash flows from operating activities before purchase of hire equipment

 

29,184

20,499

Purchase of hire equipment

10

(10,324)

(14,163)

Cash generated from operating activities

 

18,860

6,336





Net interest paid


(4,842)

(4,471)

Income tax received/(paid)


753

(614)

Net cash generated from operating activities

 

14,771

1,251





Cash flows from investing activities

 



Proceeds on disposal of business, net of cash disposed of


20,321

-

Purchases of non-hire property, plant, equipment and software

10,11

(3,891)

(5,147)

Proceeds on disposal of non-hire property, plant and equipment

6

-

315

Net cash generated from/(used in) investing activities

 

16,430

(4,832)





Cash flows from financing activities

 



Repayment of borrowings


(12,500)

-

Capital element of lease liability payments

14

(8,343)

(7,506)

Capital element of hire purchase arrangements


(4,298)

-

Net cash paid in financing activities


(25,141)

(7,506)

 

 

 


 

Net increase/(decrease) in cash

 

6,060

(11,087)

 

Net effects of foreign exchange on cash and cash equivalents


210

-

 

Cash at the start of the period


31,931

47,709

 

Cash at the end of the period

 

38,201

36,622

 

 

 

 


 

 

The notes form part of these condensed consolidated financial statements.

 

HSS Hire Group plc 

Notes forming part of the unaudited condensed consolidated financial statements

 

1.     General information

 

The Company is a public limited company, is quoted on the AIM market of the London Stock Exchange and is incorporated and domiciled in the United Kingdom. The address of the registered office is Building 2, Think Park, Mosley Road, Manchester M17 1FQ. These condensed consolidated financial statements comprise the Company and its subsidiaries (the 'Group') and cover the 26-week period ended 29 June 2024.

 

The Group is primarily involved in providing tool and equipment hire and related services in the United Kingdom and the Republic of Ireland, details of the developments in the period, along with the effects of seasonality, can be found in the Chief Executive Officer's Report and Group Financial Performance.

 

The condensed consolidated financial statements were approved for issue by the Board on 24 September 2024.

 

The condensed consolidated financial statements do not constitute the Statutory Accounts within the meaning of Section 434 of the Companies Act 2006 and have not been subject to audit by the Group's auditor. Statutory Accounts for the year ended 30 December 2023 were approved by the Board on 30 April 2024 and delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

 

2.     Basis of preparation and significant accounting policies

 

The condensed consolidated financial statements for the 26 weeks ended 29 June 2024 have been prepared in accordance with IAS 34 Interim Financial Reporting. The condensed consolidated financial statements should be read in conjunction with the Group's Annual Report and Accounts for the year ended 30 December 2023, which were prepared in accordance with IFRS as adopted by the UK (IFRS).

 

Under the requirements of IFRS5, the group has restated certain income statement disclosures to present the comparative figures on a continuing operations basis. For details of the discontinued operation please see note 17 business disposals.

 

Accounting policies are consistent with those in the Statutory Accounts for the year ended 30 December 2023.

 

Going concern

 

At 29 June 2024, the Group's financing arrangements consisted of a drawn senior finance facility of £57.5m, an undrawn revolving credit facility of £19.0m, undrawn overdraft facilities of £6.0m and finance lines to fund hire fleet of £11.3m. Cash at 29 June was £38.2m, providing liquidity headroom of £74.5m. Both the senior finance facility and revolving credit facility are subject to net debt leverage and interest rate cover financial covenant tests each quarter. At the reporting date the Group had significant headroom against these covenants. Since the year end, the Group has been in a position to make repayments against the senior finance facility of £12.5m and the Group has begun discussions to renew the financing, with the Directors confident that this will be achieved well in advance of the expiration date of the facility.

The Directors continue to model via a number of scenarios current macroeconomic factors such as increasing inflation. At 24 September 2024 the Group had sufficient liquidity to operate within banking covenants for the period to 30 September 2025 even under a 'reasonable worst case' scenario. The reasonable worst case scenario models lower underlying revenue performance, lowers product margins, and increases debtor days.

After reviewing the above, considering current and future developments and principal risks and uncertainties, and making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence over a period of at least twelve months from the date of approval of these financial statements.  Accordingly, they continue to adopt the going concern basis in preparing these unaudited condensed consolidated financial statements.

 

3.     Segmental reporting

 

In the previous year, the Group's Operating Segments were amended after restructuring during 2022 had changed the internal Board Reporting and by extension, the Operating and Reportable Segments. In the previous interim financial statements, the Group had included the original and revised segmental information as a transitional disclosure arrangement because it was not possible to restate the comparative period under the new Segments. These interim financial statements present both periods using only the revised segments for the first time.

 

As discussed more fully in note 17, the Group disposed of the 'Power' segment during the period (comprising ABird Limited, ABird Superior Limited and Apex Generators Limited). As a result of this transaction, the Group has restated the comparative income statement disclosures on a continuing operations basis. The Power companies were previously presented within the 'Operations - UK' Segment.

 

The largest customer of the Power companies was and continues to be the ProService business. This relationship means that the elimination of transactions between trading segments included within Central have also been restated as a result of the continuing operations basis of preparation. The relationship between ProService and the Power companies continues under commercial terms reached during the sale and are discussed in note 17.

 

The Group continues to present separately costs relating to central management within the "Central" heading in the disclosures below, which, also includes the elimination of revenue between trading segments. All segment revenue, operating profit, assets and liabilities are attributable to the principal activity of the Group being the provision of tool and equipment hire and related services in, and to customers in, the United Kingdom and the Republic of Ireland. No single customer represented more than 10% of Group Revenue in the 26 week period ending 29 June 2024 (26 weeks ending 1 July 2023: None).


26 weeks ending 29 June 2024


ProService

Operations - UK

HSS Ireland

Central

Total


£000s

£000s

£000s

£000s

£000s


 

 

 

 

 

Equipment hire and related revenue

130,320

47,026

11,772

(47,127)

141,990

Sale of goods and related service

15,136

2,290

1,580

(1,557)

17,450

Other services rendered

11,318

-

11

-

11,329

Total revenue (including intergroup)

156,774

49,316

13,363

(48,684)

170,769


 

 

 

 

 

Adjusted EBITDA (continuing basis)

9,213

21,968

3,565

(7,871)

26,875

Less: Depreciation

(941)

(16,749)

(1,664)

(232)

(19,586)

Adjusted EBITA (continuing basis)

8,272

5,219

1,901

(8,103)

7,289


 

 

 

 

 

Less: Exceptional items (non-finance)

 

 

 


(2,298)

Less: Amortisation

 

 

 


(1,092)

Operating profit (continuing basis)

 

 

 

 

3,899

Net finance expenses

 

 

 

 

(5,156)

Loss before tax (continuing basis)

 

 

 

 

(1,257)

 

 

 

 

 

 



 


26 weeks ending 1 July 2023


ProService

Operations - UK

HSS Ireland

Central

Total


£000s

£000s

£000s

£000s

£000s







Equipment hire and related revenue

130,431

51,234

11,435

(51,234)

141,866

Sale of goods and related service

11,789

2,772

2,103

(2,400)

14,264

Other services rendered

9,420

-

3

-

9,423

Total revenue (including intergroup)

151,640

54,006

13,541

(53,634)

165,553







Adjusted EBITDA (continuing basis)

9,746

24,341

3,678

(8,838)

28,928

Less: Depreciation

(801)

(15,849)

(1,371)

(97)

(18,118)

Adjusted EBITA (continuing basis)

8,945

8,492

2,307

(8,935)

10,810







Less: Exceptional items (non-finance)





(97)

Less: Amortisation





(894)

Operating profit (continuing basis)





9,819

Net finance expenses





(5,093)

Profit before tax (continuing basis)





4,726

 

 

 

 

 

 

 

 

 

As at 29 June 2024

 

ProService

Operations - UK

HSS Ireland

Central

Total

 

£000s

£000s

£000s

£000s

£000s

 

 

 

 

 

 

Additions to non-current assets

 

 

 

 

 

Property, plant and equipment

185

13,510

1,361

-

15,056

Right of use assets

1,419

6,142

1,049

166

8,776

Intangible assets

1,340

590

-

-

1,930


 

 

 

 

 

Non-current assets net book value

 

 

 

 

 

Property, plant and equipment

658

72,197

10,505

-

83,360

Right of use assets

4,976

39,335

3,064

529

47,904

Intangible assets

72,203

67,713

7,510  

-

147,426

Other non-current assets

 

 

 

2,012

2,012

Current assets

 

 

 

121,154

121,154

Current liabilities

 

 

 

(105,813)

(105,813)

Non-current liabilities

 

 

 

(117,996)

(117,996)

Net assets

 

 

 

 

178,047

 

 


 

 

 

 

 


As at 30 December 2023


ProService

Operations - UK

HSS Ireland

Central

Total


£000s

£000s

£000s

£000s

£000s







Additions to non-current assets






Property, plant and equipment

458

26,081

5,539

-

32,078

Right of use assets

3,037

15,100

741

309

19,187

Intangible assets

5,718

1,340

-

-

7,058







Non-current assets net book value






Property, plant and equipment

649

82,242

10,292

-

93,183

Right of use assets

4,477

44,311

2,601

422

51,811

Intangible assets

71,613

73,859

7,510  

-

152,982

Other non-current assets




2,012

2,012

Current assets




129,195

129,195

Current liabilities




(110,226)

(110,226)

Non-current liabilities




(135,772)

(135,772)

Net assets





183,185

 

4.     Other operating income

 




26 weeks

 ended
29 June 2024

26 weeks ended
1 July 2023




£000s

£000s






Sublease rental and service charge income



148

112






During the period sub-let rental income of £0.1m (26 weeks ended 1 July 2023: £0.1m) was received on properties no longer used by the Group for trading purposes.

 

5.     Exceptional items

 

Items of income or expense have been shown as exceptional because of their size and nature or because they are outside the normal course of business. During the 26 weeks ended 29 June 2024 the Group has recognised exceptional items as follows:

 




Included in administrative expenses

Included in finance expense

Included in loss on disposal

Total 26 weeks ended
29 June 2024




£000s  

£000s

£000s

£000s








Onerous property costs/(credits)



(209)

29

-

(180)

Costs relating to group restructuring

2,507

-

-

2,507

Onerous contract

-

125

-

125

Exceptional items from continuing operations

 

2,298

154

-

2,452

Loss arising from business divestiture - discontinued operations

-

-

642

642

Total



2,298

154

642

3,094

 

During the 26 weeks ended 1 July 2023, the Group recognised exceptional items analysed as follows:




Included in administrative expenses

Included in other operating income

Included in finance expense

Included in loss on disposal

Total 26 weeks ended
1 July 2023




£000s  

£000s

£000s

£000s

£000s









Onerous property costs/(credits)



10

(112)

18

-

(84)

Costs relating to group restructuring

208

-

-

-

208

Onerous contract

(9)

-

169

-

160

Exceptional items from continuing operations

 

 

209

(112)

187

-

284

 

Costs related to onerous properties: branch and office closures (incurred in 2024 and 2023)

In the 26 weeks ended 1 July 2023 an exceptional credit of £0.1m has been recognised within other operating income, this mainly relates to sublease income on vacant stores.

Cost relating to restructuring (incurred in 2024 and 2023)

Following the changes made to its operating network in Q4 2020 and the roll-out of HSS Pro in Q1 2021, the Group finalised the restructuring exercise in the prior period. This related primarily to third party legal and professional expenses in connect with the legal separation of the HSS Operations and HSS Pro Service divisions into distinct entities, with the legal separation completed on 3 July 2022.

 

In the current period, £2.2m of these costs principally relate to the formal separation of the commercial and operational activities of ProService and Operations.

 

Discontinued operations (incurred in 2024 and 2023)

Included within exceptional items is the loss on disposal of the Group's power companies. This has been classified as exceptional to ensure that the results of the Group can be clearly distinguished from all discontinued amounts in the income statement, more detail on the disposal of the Power businesses is provided in note 17.

 

6.     Depreciation and amortisation expense

 





 

26 weeks ended
29 June 2024

 

26 weeks ended
1 July 2023

 





£000s

 

£000s

 








 

Amortisation




1,092

 

894

 

Depreciation




19,586

 

18,118

 








 

Amounts charged in respect of depreciation:

26 weeks ending 29 June 2024

 

26 weeks ending 1 July 2023


Property, plant and equipment

Right of use assets

Total

Property, plant and equipment

Right of use assets

Total


£000s

£000s

£000s

£000s

£000s

£000s








Depreciation (notes 10,11)

9,427

8,300

17,727

              9,897

             7,984

            17,881

Accelerated depreciation relating to hire stock lost by customers or written off (notes 10,11)

2,438

98

2,536

2,680

             128

              2,808

Loss on disposal of non-hire PPE before proceeds (notes 10,11)

77

924

1,001

                   259

115

                   374

Total depreciation per notes 10,11

11,942

9,322

21,264

12,836

8,227

21,063

Proceeds on disposal of non-hire property, plant and equipment

-

-

-

(315)

-

(315)

Profit on surrender of leases

(163)

(815)

(978)

(167)

(340)

(507)

Total depreciation per income statement and statement of cash flows

11,779

8,507

20,286

12,354

7,887

20,241

Less depreciation from discontinued operations

(677)

(170)

(847)

(1,919)

(214)

(2,133)

Less depreciation included within exceptional items

(33)

180

147

10

-

10

Total depreciation used in calculating adjusted performance measures

11,069

8,517

19,586

10,445

7,673

18,118

 

 

Amounts charged in respect of amortisation:






26 weeks ended
29 June 2024

26 weeks ended
1 July 2023






£000s

£000s

Intangible assets







Amortisation (note 9)





1,110

935

Loss on disposal




-

21

Total amortisation per notes





1,110

956

Amortisation included in discontinued operations


(18)

(62)

Total from continuing operations and used in calculating adjusted performance measures


1,092

894








1.     The notes supporting the income statement have been restated to disclose continuing operations (note 2).

 

 

7.     Net finance expense

 




26 weeks ended
29 June 2024

26 weeks ended
1 July 2023




£000s

£000s






Interest on senior finance facility



2,548

2,462

Amortisation of debt issue costs



254

254

Interest on lease liabilities



1,678

1,630

Interest on hire purchase arrangements



466

345

Interest unwind on discounted provisions



298

347

Interest on revolving credit facility, including commitment fees


148

108

Other interest received



(236)

(54)

Net finance expense



5,156

5,092

Finance expense from discontinued operations



119

130

Total finance expense for statement of cash flows



5,275

5,222






 

 

8.     Earnings per share

 

Basic earnings per share:

 


(Loss)/profit after tax from total operations

(Loss)/profit after tax from continuing operations

Weighted average number of shares

Earnings after tax from total operations per share

Earnings after tax from continuing operations per share

 

£000s

£000s

000s

pence

pence

26 weeks ended 29 June 2024

(2,357)

(1,485)

705,788

(0.33)

(0.21)

26 weeks ended 1 July 2023

5,494

4,677

704,988

0.78

0.66

 

Basic earnings per share is calculated by dividing the result attributable to equity holders by the weighted average number of ordinary shares in issue for that period.

 

Diluted earnings per share:

 


(Loss)/profit after tax from total operations

(Loss)/profit after

tax from continuing operations

Weighted average number of shares

Earnings after tax from total operations per share

Earnings after tax from continuing operations per share

 

£000s

£000s

000s

pence

pence

26 weeks ended 29 June 2024

(2,357)

(1,485)

728,141

(0.32)

(0.20)

26 weeks ended 1 July 2023

5,494

4,677

726,283

0.76

0.64

 

 

Diluted earnings per share is calculated using the result attributable to equity holders divided by the weighted average number of shares outstanding assuming the conversion of potentially dilutive equity derivatives outstanding, being market value options, nil-cost share options (LTIP shares), restricted stock grants, deferred bonus shares and warrants.

 

All of the Group's potentially dilutive equity derivative securities were dilutive for the purpose of diluted basic earnings per share for the period (26 weeks ending 1 July 2023: all equity derivative securities were dilutive).

 

The following is a reconciliation between the basic earnings per share and the adjusted basic earnings per share:

 



26 weeks ended 29 June 2024

As restated1

26 weeks ended 1 July 2023



 Total operations

 Continuing operations

 Total operations

 Continuing operations



pence

pence

pence

pence

Basic earnings per share


(0.33)

(0.21)

0.78

0.66

Add back:






Exceptional items per share


0.44

0.35

0.04

0.04

Tax per share


0.02

0.03

0.01

0.01

Charge:

 





Tax charge at prevailing rate


(0.03)

(0.04)

(0.18)

(0.16)

Adjusted basic earnings per share


0.10

0.13

0.65

0.55

 

The following is a reconciliation between the diluted earnings per share and the adjusted diluted earnings per share:

 



26 weeks ended 29 June 2024

As restated1

26 weeks ended 1 July 2023



 Total operations

 Continuing operations

 Total operations

 Continuing operations



pence

pence

pence

pence

Diluted earnings per share


(0.32)

(0.20)

0.76

0.64

Add back:


 

 



Exceptional items per share


0.42

0.34

0.04

0.04

Tax per share


0.02

0.03

0.01

0.01

Charge:


 

 



Tax charge at prevailing rate


(0.03)

(0.04)

(0.18)

(0.15)

Adjusted diluted earnings per share


0.09

0.13

0.63

0.54

 

 

The weighted average number of shares for the purposes of calculating the diluted earnings per share are as follows:




 26 weeks ended
29 June 2024

 26 weeks ended
1 July 2023




Weighted average number of shares

Weighted average number of shares




000s

000s






Basic



705,788

704,988

LTIP share options



2,564

3,003

Restricted stock grant



19,712

18,209

CSOP options



77

83

Diluted



728,141

                726,283






 

1. The notes supporting the income statement have been restated to disclose continuing operations (note 2).

 

 

 

9.     Intangible assets



Goodwill

Customer relationships

Brands

Software

Total

 


£000s

£000s

£000s

£000s

£000s

Cost

 






At 31 December 2023

 

115,855

25,400

22,585

39,462

203,302

Additions


-

-

-

1,931

1,931

Disposed of on business divestiture


(6,053)

(900)

(685)

-

(7,638)

Disposals


-

-

-

-

-

At 29 June 2024

 

109,802

24,500

21,900

41,393

197,595

 







Amortisation

 






At 31 December 2023

 

-

25,382

361

24,577

50,320

Charge for the period


-

13

5

1,092

1,110

Disposed of on business divestiture


-

(895)

(366)

-

(1,261)

Disposals


-

-

-

-

-

At 29 June 2024

 

-

24,500

-

25,669

50,169

Net book value

 






At 29 June 2024

 

109,802

-

21,900

15,724

147,426

 

 

 


Goodwill

 

Customer relationships

Brands

Software

Total



£000s

£000s

£000s

£000s

£000s

Cost







At 1 January 2023


115,855

25,400

22,585

32,764

196,604

Additions


-

-

-

4,246

4,826

Disposals


-

-

-

(3,827)

(3,827)

At 1 July 2023


115,855

25,400

22,585

33,183

197,023








Amortisation







At 1 January 2023


-

25,291

327

23,119

48,737

Charge for the period


-

45

17

873

935



-

-

-

(3,827)

(3,827)

At 1 July 2023


-

25,336

344

20,165

45,845

Net book value







At 1 July 2023


115,855

64

22,241

13,018

151,178

 



Goodwill

Customer relationships

Brands

Software

Total



£000s

£000s

£000s

£000s

£000s

Cost







At 1 January 2023


115,855

25,400

22,585

32,764

196,604

Additions


-

-

-

7,058

7,058

Disposals


-

-

-

(360)

(360)

At 30 December 2023


115,855

25,400

22,585

39,462

203,302








Amortisation







At 1 January 2023


-

25,291

327

23,119

48,737

Charge for the period


-

91

34

1,818

1,943

Disposals


-

-

-

(360)

(360)

At 30 December 2023


-

25,382

361

24,577

50,320

Net book value







At 30 December 2023


115,855

18

22,224

14,885

152,982








 

The Group tests property, plant and equipment, goodwill and indefinite life brands for impairment annually and considers at each reporting date whether there are indicators that impairment may have occurred.

 

10.  Property, plant and equipment

 



Land & buildings

Plant & machinery

Materials & equipment held for hire

Total

 


£000s

£000s

£000s

£000s

Cost

 

 

 

 

 

At 31 December 2023

 

35,759

21,912

181,054

238,725

Transferred from right of use assets

 

-

-

193

193

Additions

 

662

431

13,963

15,056

Disposals

 

(912)

(2)

(10,306)

(11,220)

Disposed on business divestiture

 

(1,414)

(1,291)

(39,277)

(41,982)

Foreign exchange differences

 

(24)

(5)

(8)

(37)

At 29 June 2024

 

34,071

21,045

145,619

200,735



 

 

 

 

Accumulated depreciation

 

 

 

 

 

At 31 December 2023

 

26,539

19,140

99,863

145,542

Transferred from right of use assets

 

-

-

145

145

Charge for the period

 

1,160

517

7,750

9,427

Disposals

 

(835)

(2)

(7,869)

(8,706)

Disposed on business divestiture

 

(1,007)

(1,210)

(26,756)

(28,973)

Foreign exchange differences

 

(9)

(2)

(49)

(60)

At 29 June 2024

 

25,848

18,443

73,084

117,375



 

 

 

 

Net book value

 

 

 

 

 

At 29 June 2024

 

8,223

2,602

72,535

83,360

 

The transferred from right of use assets category represents the acquisition of ROU assets at expiry of the lease in cases where the title is transferred to the Group.

 

 




Land & buildings

Plant & machinery

Materials & equipment held for hire

Total




£000s

£000s

£000s

£000s

Cost

 

 





At 1 January 2023



35,045

29,196

174,508

238,749

Transferred from right of use assets



-

-

242

242

Additions



575

405

17,788

18,768

Disposals



(360)

(40)

(9,958)

(10.358)

Foreign exchange differences



(32)

(3)

(302)

(337)

At 1 July 2023

 

 

35,228

29,558

182,278

247,064








Accumulated depreciation

 

 





At 1 January 2023



23,957

26,122

100,895

150,974

Transferred from right of use assets



-

-

169

169

Charge for the year



1,278

666

7,953

9,897

Disposals



(102)

(40)

(7,278)

(7,420)

Foreign exchange differences



(3)

-

-

(3)

At 1 July 2023

 

 

25,130

26,748

101,739

153,617








Net book value

 

 





At 1 July 2023

 

 

10,098

2,810

80,539

93,447

 

 




Land & buildings

Plant & machinery

Materials & equipment held for hire

Total




£000s

£000s

£000s

£000s

Cost

 

 





At 1 January 2023



35,045

29,196

174,508

238,749

Transferred from right of use assets



-

-

372

272

Transferred to right of use assets



-

-

(483)

(483)

Additions



1,680

847

29,551

32,078

Disposals



(724)

(8,128)

(22,753)

(31,605)

Remeasurement



(216)

-

-

(216)

Foreign exchange differences



(26)

 (3)

(141)

(170)

At 30 December 2023

 

 

35,759

21,912

181,054

238,725








Accumulated depreciation

 

 





At 1 January 2023



23,957

26,122

100,895

150,974

Transferred from right of use assets



-

-

323

323

Transferred to right of use assets



-

-

(380)

(380)

Charge for the year



2,531

1,248

15,296

19,075

Disposals



(444)

(8,124)

(16,382)

(24,950)

Accelerated depreciation on exit of trading locations



507

9

-

516

Foreign exchange differences



(12)

-

(4)

(16)

Transfers



-

(115)

115

-

At 30 December 2023

 

 

26,539

19,140

99,863

145,542








Net book value

 

 





At 30 December 2023

 

 

9,220

2,772

81,191

93,183

 

11.  Right of use assets



Property

Vehicles

Equipment for internal use

Equipment for hire

Total



£000s

£000s

£000s

£000s

£000s

Cost

 






At 31 December 2023

52,935

27,908

-

4,134

84,977

Additions

2,615

5,773

150

237

8,775

Remeasurements

(321)

-

-

-

(321)

Transferred to property, plant and equipment

-

-

-

(193)

(193)

Disposals

 

(1,107)

(2,303)

-

(174)

(3,584)

Disposed of with business divestiture

(3,779)

(1,801)

(30)

-

(5,610)

Foreign exchange differences

(56)

(47)

-

-

(103)

At 29 June 2024

 

50,287

29,530

120

4,004

83,941

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

At 31 December 2023

21,321

10,303

-

1,542

33,166

Charge for the period

4,511

3,373

14

402

8,300

Transferred to property, plant and equipment

-

-

-

(145)

(145)

Disposals

 

(746)

(1,740)

-

(76)

(2,562)

Disposed of with business divestiture

(1,942)

(748)

-

-

(2,690)

Foreign exchange differences

(14)

(18)

-

-

(32)

At 29 June 2024

 

23,130

11,170

14

1,723

36,037

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

At 29 June 2024

 

27,157

18,360

106

2,281

47,904

 

The transferred to property, plant and equipment category represents the acquisition of ROU assets at expiry of the lease in cases where the title is transferred to the Group.

 



Property

Vehicles

Equipment for internal use

Equipment for hire

Total



£000s

£000s

£000s

£000s

£000s

Cost

 






At 1 January 2023

 

56,895

31,613

520

3,606

92,634

Additions

2,152

7,462

-

1,012

10,626

Transferred to property, plant and equipment

-

-

-

(242)

(242)

Disposals

 

(4)

(547)

(200)

(179)

(930)

Foreign exchange differences

(64)

(35)

-

-

(99)

At 1 July 2023

 

58,979

38,493

320

4,197

101,989

 

 






Accumulated depreciation






At 1 January 2023

 

20,540

18,909

502

870

40,821

Charge for the period

4,028

3,453

17

486

7,984

Transferred to property, plant and equipment

-

-

-

(169)

(169)

Disposals

 

(4)

(432)

(200)

(51)

(687)

Foreign exchange differences

(5)

(9)

-

-

(14)

At 1 July 2023

 

24,559

21,921

319

1,136

47,935

 

 






Net book value

 






At 1 July 2023

 

34,420

16,572

1

3,061

54,054

 

 



Property

Vehicles

Equipment for internal use

Equipment for hire

Total



£000s

£000s

£000s

£000s

£000s

Cost

 






At 1 January 2023

56,895

31,613

520

3,606

92,634

Additions


5,243

12,882

-

1,062

19,187

Re-measurements


(608)

-


-

(608)

Transferred to property, plant and equipment

-

-

-

(372)

(372)

Transferred from property, plant and equipment

-

-


483

483

Disposals


(8,558)

(16,573)

(520)

(645)

(26,296)

Foreign exchange differences

(37)

(14)

-

-

(51)

At 30 December 2023

 

52,935

27,908

-

4,134

84,977








Accumulated depreciation






At 1 January 2023

20,540

18,909

502

870

40,821

Transfers to property, plant and equipment

-

-

-

(323)

(323)

Transferred from property, plant and equipment

-

-

-

380

380

Charge for the year


6,625

6,976

18

979

14,598

Accelerated depreciation on exit of trading locations

943

-

-

-

943

Disposals


(6,787)

(15,582)

(520)

(364)

(23,253)

At 30 December 2023

 

21,321

10,303

-

1,542

33,166








Net book value

 






At 30 December 2023

 

31,614

17,605

-

2,592

51,811

Disclosures relating to lease liabilities are included in note 14.

 

 

12.  Trade and other receivables


26 week period ended 29 June 2024


Gross

Provision for impairment

Provision for credit notes

Net of provision


£000s

£000s

£000s

£000s






Trade receivables

62,106

(3,350)

(4,909)

53,847

Accrued income

14,389

(115)

-

14,274

Trade receivables and contract assets

76,495

(3,465)

(4,909)

68,121

Net investment in sublease

217

-

-

217

Other debtors

4,232

-

-

4,232

Prepayments

7,317

-

-

7,317

Total trade and other receivables

88,261

(3,465)

(4,909)

79,887



 

 

 

 

 


Year ended 30 December 2023


Gross

Provision for impairment

Provision for credit notes

Net of provision


£000s

£000s

£000s

£000s






Trade receivables

76,620

(3,607)

(5,528)

67,485

Accrued income

13,318

(103)

-

13,215

Trade receivables and contract assets

89,938

(3,710)

(5,528)

80,700

Net investment in sublease

569

-

-

569

Other debtors

5,846

-

-

5,846

Prepayments

6,326

-

-

6,326

Total trade and other receivables

102,679

(3,710)

(5,528)

93,441

 

The following table details the movements in the provisions for credit notes and impairment of trade receivables and contract assets:

 




26-week period ended

29 June 2024

Year ended

30 December 2023




Provision for impairment

Provision for credit notes

Provision for impairment

Provision for credit notes




£000s

£000s

£000s

£000s




 




Balance at the beginning of the period


(3,710)

(5,528)

(3,449)

Increase in provision



(870)

(3,631)

(2,183)

Utilisation



1,070

4,187

1,922

Disposed of with business divestiture

45

63

-

Balance at the end of the period

 

 

(3,465)

(4,909)

(3,710)

(5,528)








 

 

The bad debt provision based on expected credit losses and applied to trade receivables and contract assets, all of which are current assets, is as follows:

 

At 29 June 2024

Current

0-60 days past due

61-365 days past due

1-2 years past due

Total

Trade receivables and contract assets

59,816

7,256

7,621

1,802

76,495

Expected loss rate

0.7%

2.3%

20.6%

74.2%

4.5%

Provision for impairment charge

392

169

1,567

1,337

3,465

 


















At 30 December 2023

Current

0-60 days past due

61-365 days past due

1-2 years past due

Total

Trade receivables and contract assets

 73,810

7,594

7,031

        1,503

      89,938

Expected loss rate

0.6%

2.4%

24.1%

90.6%

4.1%

Provision for impairment charge

469

184

1,696

1,361

3,710

 

Contract assets consist of accrued income.

 

The provision for impairment is estimated using the simplified approach to expected credit loss methodology and is based upon past default experience and the Directors' assessment of the current economic environment for each of the Group's ageing categories.

 

The Directors have given specific consideration to the macroeconomic uncertainty leading to pressures on businesses facing staff and material shortages and, more latterly, increased inflation. At the balance sheet date, similar to 2023, the Group considers that historical losses are not a reliable predictor of future failures and has exercised judgement in the expected loss rates across all categories of debt. In so doing the Group has applied an adjusted risk factor of 1.125x (2023: 1.25x) to reflect the increased risk of future insolvency. As in the prior year, historical loss rates have been increased where debtors have been identified as high risk, with a reduction applied to customer debt covered by credit insurance.

 

In line with the requirements of IFRS 15, provisions are made for credit notes expected to be raised after the reporting date for income recognised during the period.

 

The combined provisions for bad debt and credit notes amount to 12.3% of trade receivables and contract assets at 29 June 2024 (30 December 2023: 11.4%).

 

13.  Trade and other payables




29 June

2024

30 December 2023




£000s

£000s

Current

 




Trade payables



48,272

50,410

Other taxes and social security costs



4,049

4,631

Other creditors



4,144

1,020

Accrued interest on borrowings



589

716

Accruals



24,464

27,204

Deferred income



1,342

1,336




82,860

85,317






 

 

14        Lease liabilities

 

 

 

 

 

29 June

2024

30 December 2023





£000s

£000s

Current






Lease liabilities




12,891

14,548

Non-current






Lease liabilities




39,774

42,822





52,665

57,370

 

 






The interest rates on the Group's lease liabilities are as follows:





29 June

2024

30 December 2023







Equipment for hire

Fixed


10.6 to 19.1%

10.6 to 19.1%

Other

Fixed



6.3 to 7.7%

5.7 to 6.1%

 

 

The weighted average interest rates on the Group's lease liabilities are as follows:

 





29 June

2024

30 December 2023







Lease liabilities




6.5%

6.4%







 

The Group's leases have the following maturity profile:

 





29 June

2024

30 December 2023





£000s

£000s







Less than one year




15,953

17,735

Two to five years




35,455

37,765

More than five years




12,207

13,375





63,615

68,875







Less interest cash flows:




(10,950)

(11,505)

Total principal cash flows


 

 

52,665

57,370



 

 

 


 

 

The maturity profile, excluding interest cash flows of the Group's leases is as follows:

 





29 June

2024

30 December 2023





£000s

£000s







Less than one year




12,891

14,548

Two to five years




29,627

31,737

More than five years




10,147

11,085





52,665

57,370

 













The lease liability movements are detailed below:

Property

Vehicles

Equipment for hire and internal use

Total


£000s

£000s

£000s

£000s

At 31 December 2023

35,940

18,158

3,272

57,370

Additions

2,150

5,775

266

8,191

Re-measurements

(321)

-

-

(321)

Discount unwind

1,056

539

198

1,793

Payments (including interest)

(4,865)

(3,810)

(1,462)

(10,137)

Disposals

(472)

(615)

-

(1,087)

Disposed of with business divestiture

(2,020)

(1,028)

(26)

(3,074)

Foreign exchange differences

(45)

(25)

-

(70)

At 29 June 2024

31,423

18,994

2,248

52,665


 

 

 

 


Property

Vehicles

Equipment for hire and internal use

Total


£000s

£000s

£000s

£000s

At 1 January 2023

39,268

13,472

3,552

56,292

Additions

5,167

12,955

1,126

19,248

Re-measurements

(720)

-

-

(720)

Discount unwind

2,320

764

536

3,620

Payments (including interest)

(9,483)

(7,924)

(1,942)

(19,349)

Disposals

(584)

(1,091)

-

(1,675)

Foreign exchange differences

(28)

(18)

-

(46)

At 30 December 2023

35,940

18,158

3,272

57,370

 

15        Borrowings

 











29 June

2024

30 December 2023





£000s

£000s

Current  




 


Hire purchase arrangements




5,047

5,545

 




 


Non-current  




 


Hire purchase arrangements




10,679

9,930

Senior finance facility




56,839

69,085





67,518

79,015







The senior finance facility is stated net of transaction fees of £0.7m (30 December 2023: £0.9m) which are being amortised over the loan period.

 

 

The nominal value of the Group's loans at each reporting date is as follows:

 





29 June

2024

30 December 2023





£000s

£000s







Hire purchase arrangements




15,726

15,475

Senior finance facility




57,500

70,000





 73,226

85,475

 

The interest rates on the Group's borrowings are as follows:

 





29 June

2024

30 December

2023







Hire purchase arrangements

Floating

% above NatWest base rate

2.2 to 2.5%

2.2 to 2.5%

Revolving credit facility

Floating

% above SONIA

3.0%

3.0%

Senior finance facility

Floating

% above SONIA

3.0%

3.0%

 

The weighted average interest rates on the Group's borrowings are as follows:

 





29 June

2024

30 December 2023





 


Hire purchase arrangements

Floating

% above NatWest base rate

7.7%

7.7%

Revolving credit facility

Floating

% above SONIA

8.2%

8.2%

Senior finance facility

Floating

% above SONIA

8.2%

8.2%

 

The Group had undrawn committed borrowing facilities of £36.3m at 29 June 2024 (2023: £36.3m), including £11.3m (2022: £11.3m) of finance lines to fund hire fleet capital expenditure not yet utilised. Including net cash balances, the Group had access to £74.5m of combined liquidity from available cash and undrawn committed borrowing facilities at 29 June 2024 (2023: £68.2m).

 

 

The Group's borrowings have the following maturity profile:

 


29 June 2024

30 December 2023


Hire purchase arrangements

Senior finance facility

Hire purchase arrangements

Senior finance facility


£000s

£000s

£000s

£000s






Less than one year

5,964

4,715

6,333

5,733

Two to five years

11,789

59,307

10,805

75,096


17,753

64,022

17,138

80,829






Less interest cash flows:

(2,027)

(6,522)

(1,663)

(10,829)






Total principal cash flows

15,726

57,500

15,475

70,000






 

 

16        Provisions 


Onerous property costs

Dilapidations

Onerous contracts

Total

 

£000s

£000s

£000s

£000s

 





At 30 December 2023

554

11,215

6,800

18,569

Additions

-

99

-

99

Utilised during the period

(149)

(519)

(1,644)

(2,312)

Unwind of provision

10

166

125

301

Impact of change in discount rate

-

-

-

-

Releases

(198)

(126)

-

(324)

Foreign exchange

-

(19)

-

(19)

Disposed of with business divestiture

-

(621)

-

(621)

At 29 June 2024

217

10,195

5,281

15,693

 





Of which:





Current

112

1,775

3,128

5,015

Non-current

105

8,420

2,153

10,678

 

217

10,195

5,281

15,693

 





 


Onerous

property costs

Dilapidations

Onerous contracts

Total


£000s

£000s

£000s

£000s






At 1 January 2023

117

11,380

9,806

21,303

Additions

492

230

-

722

Utilised during the period

(60)

(508)

(3,289)

(3,857)

Unwind of provision

5

377

311

693

Impact of change in discount rate

-

907

(28)

879

Releases

-

(1,153)

-

(1,153)

Foreign exchange

-

(18)

-

(18)

At 30 December 2023

554

11,215

6,800

18,569






Of which:





Current

271

1,477

3,068

4,816

Non-current

283

9,738

3,732

13,753


554

11,215

6,800

18,569






Onerous property costs

The provision for onerous property costs represents the current value of contractual liabilities for future rates payments and other unavoidable costs (excluding lease costs) on leasehold properties the Group no longer uses. The releases are the result of early surrenders being agreed with landlords - the associated liabilities are generally limited to the date of surrender but were provided for to the date of the first exercisable break clause to align with the recognition of associated lease liabilities.

 

Onerous contract

The onerous contract represents amounts payable in respect of the agreement reached in 2017 between the Group and Unipart to terminate the contract to operate the NDEC.

 

Dilapidations

The timing and amounts of future cash flows related to lease dilapidations are subject to uncertainty. The provision recognised is based on management's experience and understanding of the commercial retail property market and third-party surveyors' reports commissioned for specific properties in order to best estimate the future outflow of funds, requiring the exercise of judgement applied to existing facts and circumstances, which can be subject to change. Utilisation of provisions during the period led to a £0.5m decrease in the provision (2023: £0.5m), driven by the exit of properties associated with the branch network restructure discussed in the Group's 2023 annual report. Provisions of £0.6m were disposed of in the period in association with the disposal of the Power companies, see note 17 for more details.

 

17        Business disposals

 

During the current period, on 7 March 2024, the Group announced the sale of ABird Limited, ABird Superior Limited and Apex Generators Limited (together the 'Power' Companies) to CES Global. The sale was undertaken as part of a strategic decision to focus on the core business and growth of the ProService and Operations businesses. The consideration for the sale was entirely settled in cash.

 

As discussed more fully in Note 3, the results of the Power businesses were previously reported within the Group's 'Operations - UK' reporting segment, with a significant element of revenues recorded through the ProService business.

 

As part of this transaction, HSS has entered into a commercial agreement with CES for the cross-hire of power generators and related services to ensure the broadest possible distribution of, and customer access to, both parties' existing fleets. The Board expects this commercial arrangement to ensure that even post-disposal, the sales in respect of the Power hire stock will continue through HSS ProService under the new commercial agreement.

 

Shortly after the disposal, the Group utilised £12.5m of the proceeds to repay borrowings and further strengthen the Group's balance sheet position.

 

The Group have restated comparative figures for the income statement throughout the financial statements in accordance with IFRS 5. The table below shows the details results of discontinued operations:




 

Result of discontinued operations

26 weeks ended 29 June 2024

26 weeks ended 1 July 2023



£000s

£000s





Revenue


4,052          

           14,893

Expenses other than finance costs, amortisation and depreciation

(3,402)

(11,756)

Depreciation

(847)

(2,133)

Amortisation

(18)

(62)

Net finance expenses

(119)

(130)

Taxation


104

5

(Loss)/profit from trade within discontinued operations, net of tax

(230)

817

Loss on disposal of discontinued operations

(642)

-

(Loss)/profit from discontinued operations, net of tax

(872)

817



 




 


Basic earnings/(loss) per share (p) from discontinued operations

(0.12)

0.12

Diluted earnings/(loss) per share (p) from discontinued operations

(0.12)

0.12


 


Weighted average number of shares (000s)

705,788

704,988

Weighted average number of diluted shares (000s)

728,141

726,283

 

Below is a detailed breakdown of the result on disposal:

 






 

 

 

£000s

Description of assets and liabilities

 

 

Goodwill


6,053

Brand and customer lists


324

Property, plant and equipment


13,009

Right of use assets


2,920

Deferred tax assets


56

Inventories


908

Trade and other receivables


3,018

Cash



369

Trade and other payables


(2,148)

Provisions


(621)

Deferred tax liabilities


(108)

Lease liabilities


(3,074)

Net assets disposed of


20,706





Total consideration


20,690

Less: costs of disposal


(626)

Less: net assets disposed of


(20,706)

Total loss on disposal


(642)



 

Cash consideration received


20,690

Cash disposed of


(369)

Net cash inflow on disposal of discontinued operations


      20,321

 

18.  Risks and uncertainties

 

The principal risks and uncertainties which could have a material impact upon the Group's performance over the remaining 26 weeks of the 2023 financial year have not changed significantly from those set out on pages 48 to 54 of the Group's 2023 Annual Report, which is available at https://www.https://www.hsshiregroup.com/investor-relations/financial-results/.

 

These risks and uncertainties are:

1)    Macroeconomic conditions;

2)    Competitor challenge;

3)    Strategy execution;

4)    Customer service;

5)    Third party reliance;

6)    IT infrastructure;

7)    Financial risk;

8)    Inability to attract and retain personnel;

9)    Legal and regulatory requirements;

10)  Safety; and

11)  Environment, Social and Governance ('ESG').

The Group continues to identify Macroeconomic Conditions as the main risk expected to affect the Group in the remaining 26 weeks for the financial year.

The Group continues to monitor the impact of inflationary pressures and interest rates at their current levels. In addition, wider macroeconomic factors like increased global conflict and the change in UK Government shortly after the balance sheet date are all taken into consideration by the Board.

 

19.  Alternative performance measures

 

Earnings before interest, taxation, depreciation and amortisation (EBITDA) and Adjusted EBITDA, earnings before interest, tax and amortisation (EBITA) and Adjusted EBITA and Adjusted profit before tax are alternative, non-IFRS and non-Generally Accepted Accounting Practice (GAAP) performance measures used by the Directors and Management to assess the operating performance of the Group.

 

- EBITDA is defined as operating profit before depreciation and amortisation. For this purpose, depreciation includes depreciation charge for the year on property, plant and equipment and on right of use assets; the net book value of hire stock losses and write-offs; the net book value of other fixed asset disposals less the proceeds on those disposals; impairments of right of use assets; the net book value of right of use asset disposals, net of the associated lease liability disposed of; and the loss on disposal of sub-leases. Amortisation is calculated as the total of the amortisation charge for the year and the loss on disposal of intangible assets. Exceptional items are excluded from EBITDA to calculate Adjusted EBITDA.

 

- EBITA is defined by the Group as operating profit before amortisation. Exceptional items are excluded from EBITA to calculate Adjusted EBITA.

 

- Adjusted profit before tax is defined by the Group as profit before tax, amortisation of customer relationships and brand related intangibles as well as exceptional items.

 

The Group discloses Adjusted EBITDA, Adjusted EBITA and Adjusted profit before tax as supplemental non-IFRS financial performance measures because the Directors believe they are useful metrics by which to compare the performance of the business from period to period and such measures like Adjusted EBITDA, Adjusted EBITA and Adjusted profit before tax are broadly used by analysts, rating agencies and investors in assessing the performance of the Group. Accordingly, the Directors believe that the presentation of Adjusted EBITDA, Adjusted EBITA and Adjusted profit before tax provides useful information to users of the financial statements.

 

As these are non-IFRS measures, other entities may not calculate the measures in the same way and hence are not directly comparable.

 

Adjusted EBITDA is calculated as follows:


26 weeks ended
29 June 2024

26 weeks ended
29 June 2024

26 weeks ended
1 July 2023

26 weeks ended
1 July 2023


Continuing

Total

Continuing

Total


£000s

£000s

£000s

£000s


 

 

 

 

Operating profit

3,899

3,684

9,819

10,761

Add: Depreciation of property, plant and equipment and right of use assets

19,586

20,433

18,118

20,251

Add: Amortisation of intangible assets

1,092

1,110

894

956

EBITDA

24,577

25,227

28,831

31,968

Add: Exceptional items (non-finance) from continuing operations

2,298

2,298

97

97

Adjusted EBITDA

26,875

27,525

28,928

32,065

 

Adjusted EBITA is calculated as follows:

 


26 weeks ended
29 June 2024

26 weeks ended
29 June 2024

26 weeks ended
1 July 2023

26 weeks ended
1 July 2023


Continuing

Total

Continuing

Total


£000s

£000s

£000s

£000s


 

 

 

 

Operating profit

3,899

3,684

9,819

10,761

Add: Amortisation of intangible assets

1,092

1,110

894

956

EBITA

4,991

4,794

10,713

11,717

Add: Exceptional items (non-finance) from continuing operations

2,298

2,298

97

97

Adjusted EBITA

7,289

7,092

10,810

11,814

 

 

Adjusted profit before tax is calculated as follows:


26 weeks ended
29 June 2024

26 weeks ended
29 June 2024

26 weeks ended
1 July 2023

26 weeks ended
1 July 2023


Continuing

Total

Continuing

Total


£000s

£000s

£000s

£000s


 

 

 

 

Profit before tax

(1,257)

(2,233)

4,727

5,539

Add: Amortisation of customer relationships and brands

-

18

-

62

Profit before tax and amortisation

(1,257)

(2,215)

4,727

5,601

Add: Exceptional items (finance and non-finance)

2,452

3,094

284

284

Adjusted profit before tax

1,195

879

5,011

5,885

 

 

20.    Post Balance-sheet events

Dividends

Subsequent to the half end, on 23 August 2024, an interim dividend of 0.18p per share was approved by the Board. This will be paid on 6th November 2024 and has an ex-dividend date of 3rd October 2024.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR GZGZLRFRGDZM

1 Year Hss Hire Chart

1 Year Hss Hire Chart

1 Month Hss Hire Chart

1 Month Hss Hire Chart

Your Recent History

Delayed Upgrade Clock