Hss Hire Group Plc

0.10 (0.71%)
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 Shares Traded Last Trade
  0.10 0.71% 14.20 111,754 16:35:25
Bid Price Offer Price High Price Low Price Open Price
14.00 14.40 14.40 14.00 14.40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equip Rental & Leasing, Nec 303.27 7.31 1.00 13.75 100.11
Last Trade Time Trade Type Trade Size Trade Price Currency
16:18:49 O 25,000 14.18 GBX

Hss Hire (HSS) Latest News

Hss Hire (HSS) Discussions and Chat

Hss Hire (HSS) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-05-31 15:18:4914.1825,0003,545.00O
2023-05-31 15:11:2814.0120,0002,802.00O
2023-05-31 12:35:3814.032,567360.02O
2023-05-31 11:25:0014.087,057993.96O
2023-05-31 10:53:3313.832,500345.69O

Hss Hire (HSS) Top Chat Posts

Top Posts
Posted at 01/5/2023 22:36 by philmac56
Well if it includes HSS, let's hope for 25p+++
Posted at 27/4/2023 11:28 by baddeal
Capex is mainly the replacement of obsolete rental fleet. Balance sheet shows c180m gross so assuming avg 6 yr life that's 30m pa and they are saying they spend c5m on IT. So 35m capex to keep as is. If they want to grow rental income then they need more assets ie more capex or do it through price - good luck with that given their customer base.If they don't spend the capex they can't sustain their rental revenues and will eventually either have to catch it up or will lose turnover.It's the great issue with these types of businesses. 21% ebitda margin isn't enough on short life assets.Remember HSS sold its higher returning long life asset businesses ie ukp and all seasons with the exception of its power fleet and most of that is probably 8-9 years old The reality is this is a long slow transfer of value from EV to equity value unless mgmt come up with a new plan.Imo leverage is too low and they have pandered to the mkt to de lever instead of using what was cheaper debt. They've now missed that ship. But hey what do I know!
Posted at 27/4/2023 09:20 by qs99
My issue with HSS is the capex spend each year to drive EBTIDA

How long before they stop replenishing and make some hay (outside of new kit to cope with increased revenues)?

When as baddeal says above, will revenue growth produce much better operational leverage?


Posted at 27/4/2023 09:18 by baddeal
These result demonstrate the challenge of HSS in a nutshell. £30m revenue growth and less than £2m ebitda growthTrading on 2x ebitda - to think the market floated it at 7x...
Posted at 27/4/2023 08:59 by abergele
We are getting that push here now we so deservedly deserve for waiting, I'm still underwater,but investing has it's ups and downs whatever the share,

Two lovely places,Llanelli and Barmouth,
Happy memories of holidays when down that far of Wales and Mid-Wales,we are lucky eh.

Posted at 27/3/2023 11:03 by melloteam
Just to let shareholders and prospective investors know that we will be discussing HSS in our Mello BASH on the MelloMonday webinar which begins at 5pm today. Https://melloevents.com/mm270323/

The programme for the evening is as follows:
5.00 pm Interview with Georgina Brittain, portfolio manager of JPMorgan UK Smaller Companies
5.30 pm Company presentation by Vector Capital plc
6.10 pm Company presentation by Fintel plc
6.40 pm Special guest interview David Cicurel
7.00 pm Company presentation by CentralNic Group plc
7.30 pm Mark Bentley introduces ShareSoc’s ‘Bank failures and their broader implications’ in-conversation event
7.35 pm Mello BASH with Damian Cannon, Kevin Taylor and Mark Simpson

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMLINK50. Https://melloevents.com/mm270323/

Posted at 20/3/2023 13:06 by pugugly
Very simple - Mortgage rate UP Taxes UP - Cost of building materials UP - UP - UP

Result less demand/requirement for the services HSS provide - so less revenue and potentially bigger loss - Subject of course to how the accounts are structed

Result Falling share price market Market Cap - QED. " quod est demonstrandum"

Posted at 02/7/2022 13:27 by tole
https://www.fool.co.uk/2022/07/02/is-this-penny-stock-on-track-for-an-explosive-recovery-in-2021-2/Is this penny stock on track for an explosive recovery in 2022?Investing in penny stocks is a risky endeavour. But it can also deliver gigantic returns for a prudent investor like me.Published 2 July, 8:09 am BSTHSSThe land of penny stocks is fraught with risk, especially today, where access to capital is becoming even more restricted. Most businesses in this arena have small operations with miniscule profits and lack the necessary resources necessary to scale rapidly.Yet, every once in a while, one of these companies finds a way. And suddenly a teeny-tiny business can become a giant. I may have found such an opportunity today. Its shares collapsed during the pandemic, but they could be in for an impressive comeback.A turnaround penny stock?Investing in an equipment hire business is hardly the most exciting idea out there. Yet HSS Hire (LSE:HSS) might soon display an explosive performance for patient investors.As a reminder, this company lends out tools & equipment while also providing support services to over 32,000 customers in the UK. It predominantly caters to construction tradespeople, who don't necessarily have the capital to buy expensive machinery. And for those that do, many still choose to rent to avoid all the costs of testing, maintenance, and distribution.In 2020, the pandemic struck. Multiple lockdowns saw construction projects grind to a halt, and the demand for equipment rental evaporated with it. Unsurprisingly, the group's revenue saw a double-digit decline, and profitability went out the window with a reported £4.7m operating loss. Subsequently, the penny stock went from trading at 26.7p to 14.3p today.Back to blackBut is all that about to change? Earlier this year, management released its preliminary results for 2021. And despite the share price staying in penny stock territory, things seem to be going very well, in my opinion.Revenue across the board jumped by double digits, climbing back to 92% of pre-pandemic levels. According to a recent trading update, this top-line growth has continued over the last six months. But the bottom line is where the real magic is happening.Following the disruptions from Covid-19, management executed a major structural overhaul of the business. Some 134 stores were permanently shuttered, revamping the operating model to rely more heavily on technological solutions. I think it's fair to say the plan worked. Why? Because the Return on Capital Employed (ROCE) surged from 10.7% to 22.1%. Consequently, operating profits for 2021 came in at a record high of £34.5m!Time to buy?HSS Hire's performance is undoubtedly impressive. But I do have some reservations about this still-penny stock. The rental equipment sector doesn't exactly have high barriers to entry. And, unfortunately, that means the group's rental fees are constantly under competitive pressure.It's also worth noting that the firm has just under £79m of debt maturing in the next five years. This is a drastic reduction from the £240m due just a year ago. However, with interest rates rising, these financial obligations could eat away at its newfound profitability.Nevertheless, with a market capitalisation of only £100m, I can't help but feel this opportunity is too good to miss for my portfolio.
Posted at 07/4/2022 21:16 by cravencottage
For those that haven't seen the IC Article from Last set of numbers...

A cheery sequel for HSS
Overhaul of branch network and move into builders' merchants provides a lower-cost route to market
November 18, 2021
By Michael Fahy

The slew of private equity-backed companies that have come to market this year suggests investors remain willing to buy into a well-presented growth story. Building equipment hire company HSS is a reminder that such stories do not always have happy endings. However, investors may be set to enjoy an altogether more cheery sequel.

Tip style
Risk rating
Bull points
Costs cut
Debt cut
Interest bill cut
Bear points
Uncertain end markets
Disposals reduce scale
All too often, companies that are brought to market by private equity players prove to have debt levels that fuelled past performance but impinge future progress. HSS Hire (HSS) falls into this category. The prospectus for its IPO in January 2014 cited a compound annual growth rate of 17 per cent between 2011 and September 2014, with an earnings growth rate of 19 per cent over the same period. The float at 210p per share valued the company at £325m. The prospectus pledged to use £85m to repay some of the debt that had been loaded onto the business, with the company carrying £275m of loans and other borrowings. Most of the rest of its £419m of total liabilities were trade payables relating to money owed equipment bought to hire out.

HSS Hire Group PLC

Today change
2.76%Price (GBP)
Getting borrowings, and the accompanying substantial interest bill, under control proved difficult. The company’s revenue increased only marginally over the four years before the pandemic and fell back below pre-IPO levels last year. Although HSS has made an operating profit in all but two of the years since float, the burden of servicing its debt meant it has declared a pre-tax loss from continuing operations every year.

By 2017, net debt (£234m excluding leases) stood at a hairy 4.8 times cash profits in 2017. But some breathing room was won in 2018 with the £60.5m sale of its UK Platforms business and at the end of last year it managed to raise a very welcome £53m by selling new shares at 10p a pop.

Cutting back
Although Covid-19 presented challenges, with revenue declining by 18 per cent as HSS was forced to close many branches, it also provided the opportunity to step up transformation plans.

HSS decided to close 134 out of its 234 branches last year and lay off 300 staff. This led to it incurring £7.4m in property-related costs and £4.6m of associated charges, including £1.6m of redundancy expenses. However, the company estimates the move will reduce its overheads by £15m a year.

It is also confident of being able to substitute sales lost through shuttered branches. It has improved its online offer, with remote sales teams driving more business to click-and-collect locations.

A trial that began in 2019 to house HSS concessions within builders’ merchants was also stepped up, with 24 concessions operating at the end of last year.

By the end of the third quarter of 2020, sales had returned to 90 per cent of pre-pandemic levels with just a fifth of its pre-Covid branch network open. As a result, it managed to generate positive adjusted earnings throughout the year.

The builders’ merchants’ trial has been extended this year to 43 locations by the end of the first half. Operating profit for the six months came in at £22.6m compared with a £700,000 loss last year and revenue grew by 22 per cent to £150.5m. Online revenue grew by 75 per cent year on year and stood at 24 per cent of total transactions.

The increased profit and the sale of an Irish business unit, Laois Hire, for £10m after expenses (on which it made a £3.2m profit) helped to bring its net borrowings down to £98m, or 1.7 times last year’s cash profits. The debt reduction has continued apace with the sale of All Seasons Hire at the end of September for £55m. Adjusted for the lost profits associated with the disposal, this puts the company's net debt-to-cash profit ratio at just one times. That's a major transformation of the balance sheet (see graph).

Profit without the kit
HSS has agreed deals with the companies it has sold off to continue to offer their equipment for hire through its online platform. Although rehire agreements won’t be as profitable, it means the company can still make some money from these businesses without having the same hefty capital commitments.

Utilisation rates for specialist kit such as access platforms and lifting gear is also typically higher than for smaller tools, but they’re also a much bigger drain on profits when not being used.

By the end of last year, the number of product lines HSS offered had been slimmed down to around 1,000. Utilisation rates stood at 56.5 per cent in the first half of this year.

HSS’s reduced borrowing requirement has allowed the company to refinance its remaining debt. It agreed a new £70m term loan and £25m revolving credit facility with HSBC (HSBA) and NatWest (NWG) earlier this month. It will be charged interest rates of between 275 and 350 basis points over the interbank rate, which means last year’s interest charge of £16.3m should fall to about £3m. A £12.7m saving on top of the £15m taken out of operating cost.

HSS’s share price is up almost 75 per cent since the start of this year – just after the company completed the equity raise. Most of the gains were in the first few months of the year, though, and the share price has remained largely flat over the past six months.

It’s easy to understand why investors who endured years of losses and declining valuations may be reluctant to buy back in. HSS’s move from the main market onto Aim in January this year will preclude some from doing that.

There’s also no guarantee that the positive momentum experienced by the company over the past 18 months or so will be maintained.

The home improvement market has witnessed double-digit growth this year, but this rate is likely to slow in 2022, according to the Construction Products Association. Other sectors, such as the fit-out market for retail and hospitality sectors as well as infrastructure and energy services, are likely to post stronger growth, though.

A crowded market
HSS estimates the size of the UK hire industry to be around £4bn, and prior to this year's disposals it had a share of about 8 per cent. That concurs with estimates by Ashtead (AHT) , which regards its Sunbelt Rentals brand as the market leader with a 9 per cent share, ahead of Speedy Hire’s (SDY) 7 per cen and VP Group (VP) at 6 per cent. This shows how fragmented the market is, with the remaining 72 per cent split between independent operators.

The four big national players enjoy some competitive advantage given their nationwide coverage, but their pricing power is limited. The Office for National Statistics said there were 4,165 companies registered in the sector last year, with a lack of differentiation leaving most firms to compete on price. The annual growth rate for hire services was 1.5 per cent in the third quarter, which was well below the overall construction output price index growth of 5.1 per cent – the highest since records began in 2014.

The sector is therefore unlikely to provide runaway growth, but HSS’s reduction in overheads and significantly lower finance costs should provide the opportunity for better returns. Recent forecast upgrades bode well. Broker Numis last week upgraded its earnings forecast for next year by 147 per cent, to 2.6p a share. By this metric, HSS’s shares trade at only seven times next year’s earnings – below peers such as Speedy Hire and VP and significantly below high-flying Ashtead, which now makes most of its money from the US market. Numis also increased its price target on HSS’s shares from 28p to 33p.

The company is in much better financial shape now than when it floated, but with investors losing faith over many years, its valuation has sunk – its current market capitalisation stands at £125m, which is only just above its net asset value of £121m. Exponent Private Equity, the firm that brought HSS onto the London Stock Exchange, is still its biggest shareholder with a stake of almost 34 per cent. If the company’s share price continues to languish below peers, it wouldn’t be such a shock if either its biggest backer or one of its peers sees an opportunity to take it out of shareholders’ hands.

Last IC View, Sell at 31p, 6 April 2018

Company Details Name Mkt Cap Price 52-Wk Hi/Lo
HSS Hire (HSS) £129m 19p 25.0p / 9.5p
Size/Debt NAV per share* Net Cash / Debt(-) Net Debt / Ebitda Op Cash/ Ebitda
15p -£151m - 61%
Valuation Fwd PE (+12mths) Fwd DY (+12mths) FCF yld (+12mths) EV/Sales
10 - - 1.0
Quality/ Growth EBIT Margin ROCE 5yr Sales CAGR 5yr EPS CAGR
- 6.3% -2.9% -
Forecasts/ Momentum Fwd EPS grth NTM Fwd EPS grth STM 3-mth Mom 3-mth Fwd EPS change%
510% 20% -2.6% 45.5%
Year End 31 Dec Sales (£m) Profit before tax (£m) EPS (p) DPS (p)
2018 353 5.1 2.39 nil
2019 328 3.1 1.65 nil
2020 270 -6.3 -2.03 nil
f'cst 2021 292 6.8 0.63 nil
f'cst 2022 303 19.2 1.99 nil
change (%) +4 +182 +216 –
Source: FactSet, adjusted PTP & EPS figures
NTM = Next 12 months
STM = Second 12 months (ie, one year from now)
*Includes intangible assets of £696m, or 23p a share

Posted at 09/11/2021 17:46 by tole
https://www.fool.co.uk/2021/11/09/1-dirt-cheap-penny-stock-to-buy-in-november/1 dirt-cheap penny stock to buy in November!Jabran Khan | Tuesday, 9th November, 2021 | More on: HSSBritish Pennies on a Pound Note Image source: Getty ImagesHSS Hire (LSE:HSS) is a penny stock I'm considering adding to my portfolio this month. Here's why.DIY boomHSS Hire is a leading provider of tools and equipment to the construction industry. Its business is split into two divisions, which are tool and equipment rental, and customer services. Tool and equipment rental, which involves buying, maintaining and leasing out equipment, is its largest and makes up nearly 70% of total revenue. The customer services arm is split into two subdivisions. One is a tool finder and the other subdivision offers training courses around use of equipment.There has been a boom in DIY in the UK since the pandemic began. Consumers have resorted to spending leisure activities and holiday money on projects in the home. This has benefitted DIY firms. Penny stocks are those that trade for less than £1. This low cost is a result of higher risk and increased volatility. As I write, HSS shares are trading for 17p. The shares are up 40% in 12 months from 12p at this time last year.Penny stock opportunityHere's why I like HSS Hire for my portfolio.HSS is a market leader in the equipment rental sector. It has a long history of trading and has organically grown into a major force throughout the country. It has 240 locations in the UK and Ireland and employs over 2,500 people. It has a diverse business model with its different divisions and works hard to retain business-to-business customers, which are the most profitable. Its vast reach also helps it do that in my opinion.HSS has a good track record of performance. I understand that historic performance is not a guarantee of the future. I still tend to review this as a gauge. HSS Hire's financial year runs from December to December. I can see that prior to last year, revenue and gross profit increased year on year for three years. Not many other penny stocks have such a long and positive track record. The pandemic stopped this for the fourth year. Results are due again in the coming months and I believe a return to pre-pandemic levels is on the cards. This could drive the share price up, which means it could be a good time for me to buy.The recent rise in DIY throughout the UK and pent up demand for such equipment has boosted firms like HSS. More people are looking to spend money on passion projects and sprucing up their homes. Risks and verdictHSS shares do not come without risks, however. Firstly, the recent issues with supply chain and haulage will affect HSS. Secondly, construction equipment rental is a competitive market which could affect its profit margins. Finally, this current pent up demand may fade away as reopening continues, which may mean HSS performance could falter as consumers book holidays and spend money on leisure activities once more.Overall, at 17p per share, I would happily add HSS shares to my portfolio right now. I believe it is a good penny stock with some risk attached but lots of growth potential over the long term backed up by a favourable track record and good current market conditions.
Hss Hire share price data is direct from the London Stock Exchange
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