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LONDON (Alliance News) - HSS Hire Group PLC on Thursday said its earnings saw a positive momentum in the first quarter of financial 2018, as revenue rose across all divisions.
The tool and equipment rental company said revenue grew 5.2% in three months ended March to GBP84.4 million from GBP80.2 million for the same period a year earlier. Underlying revenue rose by 8.0%.
Underlying revenue in core rental division improved by 4.0% while services revenue was 15% higher year-on-year.
Adjusted earnings before interest, taxes, depreciation, and amortization came in at GBP13.8 million, up 64% from GBP8.4 million the prior year. The results reflect the rental revenue growth and improved margins, which increased by 5.9 percentage points to 16%.
During the period, the company said it reduced debt by GBP6.9 million and had GBP30.0 million in cash as at the end of March.
In the post period, HSS Hire said it implemented a new supply chain model, which is expected to save about GBP11.0 million per year. In addition, the company remains focused on refinancing its debt facilities.
"We have started 2018 positively and our recovery is now well established and gaining momentum," said Chief Executive Steve Ashmore.
"Looking ahead, we are encouraged by the positive trend in trading and remain focused on our strategic priorities so that the business can deliver on its full potential," Ashmore added.
Shares in HSS Hire were trading 4.9% higher at 33.56 pence each on Thursday.
