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HSS Hire Group PLC - Manchester-based equipment rental firm - Says underlying revenue in the second quarter of its 2021 financial year was 102% of the financial 2019 level. Both earnings before interest, tax, depreciation and amortisation and earnings before interest, tax and amortisation in the recent quarter were ahead of two years before. As result, for all of 2021, Ebitda is expected to be slightly ahead market expectations, while Ebita is likely to be materially ahead. The outperformance by the Ebita measure is due to lower depreciation following changes to the company's operating model.
Chief Executive Steve Ashmore adds: "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."
Current stock price: 19.81 pence, up 5.4% on Wednesday
Year-to-date change: up 85%
By Scarlett Butler; scarlettbutler@alliancenews.com
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