LONDON (Alliance News) - HSS Hire Group PLC on Thursday said its loss narrowed in the first half of 2018, helped by revenue growth and cost reduction programme.
The equipment supplier said its pretax loss for the first six months of 2018 narrowed to GBP7.1 million compared to the GBP30.1 million reported a year earlier, as revenue rose 5.8% to GBP169.8 million from GBP160.5 million.
The rise in revenue was driven by improved trading in the first half of 2018 across both Rental and Services segments, HSS Hire said.
The Rental unit revenue grew 2.9% to GBP122.7 million, boosted by improved performance in the company's tool hire business.
In the Services division, revenue increased 14% to GBP47.0 million from GBP41.3 million, reflecting a strong performance in HSS Hire's OneCall and Training businesses with customers continuing to value the "one-stop-shop" service offer.
During the period, HSS Hire managed to reduce its distribution costs to GBP20.7 million from GBP23.4 million, while administrative expenses were also lower year-on-year at GBP70.1 million compared with GBP84.9 million.
At the end of the period, net debt stood at GBP225.2 million. In July, HSS Hire agreed to dispose its UK Platforms Ltd subsidiary to Nationwide Platforms Ltd for GBP60.5 million to partly pay down debt.
"We are eight months into our new strategy and the group has made significant progress," said Chief Executive Steve Ashmore.
"With significant operational change behind us and continued momentum in current trading, we look forward with confidence as our attention turns to driving improved performance from the tool hire business and strengthening the group's commercial proposition," added Ashmore.
Shares in HSS Hire were trading 8.7% higher on Thursday at 30.15 pence each.
Hss Hire (HSS)