HSS Hire Group PLC Trading Update (4950D)

TIDMHSS

RNS Number : 4950D

HSS Hire Group PLC

30 June 2021

30 June 2021

HSS Hire Group Plc

Trading update and AGM statement

"EBITA expected to be materially ahead of expectations"

HSS Hire Group plc ("HSS" or the "Group") provides the following trading update ahead of its Annual General Meeting later today.

Building on the encouraging momentum in Q1 2021, trading has continued to improve since the Group reported its 2020 year end results, with underlying(1) revenues in Q2 2021 at 102% of FY19 levels.

Q2 2021 EBITDA(2) and EBITA(2) remain ahead of the comparable FY19 levels with the Group's digitally-led, lower cost operating model delivering further margin expansion. Based on the performance in the second quarter, EBITDA(2) for 2021 is expected to be slightly ahead of market expectations and EBITA(2) is now expected to be materially ahead of expectations, including the benefit of reduced depreciation following the change in operating model.

Cash collection has also remained strong throughout the quarter and, combined with improved profitability, we expect to achieve our net debt leverage(2) 2021 exit rate target of below 2x at the half-year.

The Board will provide further details on Group performance at HSS' 2021 half year results update, expected to be held in September 2021.

Steve Ashmore, Chief Executive, commented:

"We are very pleased with how the Group has continued to perform. Our strong operating profit performance, ahead of 2019 levels, is testament to the effectiveness of our digital strategy. Our embedded technology platforms combined with our partnership with builders merchants has allowed us to maintain national coverage while significantly lowering fixed costs and improving margins. Supported by very strong cash collection, we anticipate achieving our 2021 net debt leverage target of below 2x six months ahead of schedule. This strong performance has given us further confidence in our digital-focused model as we continue to build on our differentiated commercial proposition and capitalise on the market opportunities ahead of us."

-Ends-

Notes:

1) Underlying excludes impact of loss of Services volume associated with FY19 announced change to one managed service contract and Laois Hire, disposed of 7(th) April 2021.

   2)    Pre-IFRS16 basis 

Enquiries:

 
HSS Hire Group plc                               Tel: [phone] 
Steve Ashmore, Chief Executive Officer               Email: [e-mail] 
Paul Quested, Chief Financial Officer 
Greig Thomas, Head of Group Finance 
 
Numis Securities                                 Tel: [phone] 
 Stuart Skinner / George Price 
Teneo (Public Relations Adviser)                 Tel: [phone] 
Tom Davies / Charles Armitstead 
 
 

Notes to editors:

HSS Hire Group plc provides tool and equipment hire and related services in the UK and Ireland through a nationwide network and its OneCall rehire business. 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. Over 90% of its revenues come from business customers. HSS is listed on the AIM Market of the London Stock Exchange. For more information please see www.hsshiregroup.com .

Disclaimer:

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.

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 [e-mail] 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

TSTDKCBNKBKDBAB

(END) Dow Jones Newswires

June 30, 2021 02:00 ET (06:00 GMT)