HSS Hire Group PLC - Manchester-based equipment rental firm - Posts revenue of GBP150.5 million for the first half ended July 3, soaring 22% from GBP120.7 million a year previously. Swings to to pretax profit of GBP11.2 million from a GBP12.9 million loss a year before. Despite the positive bottom-line performance HSS does not propose an interim dividend payout but says it will review the dividend position in the next 12 months.
"We started the year with strong momentum and trading continued to improve over the period," comments Chief Executive Steve Ashmore. "This strong performance, combined with the post balance sheet date sale of All Seasons Hire, has allowed us to reduce leverage ... and strengthen our commercial proposition."
In separate news, HSS notes sale of All Seasons Hire, its heating, ventilation and air-conditioning arm to Cross Rental Services for GBP55million in cash. Proceeds will go towards the repayment of debt, the company states.
Looking at the second half, revenue and earnings before interest, tax, depreciation and amortisation are both above management expectations in the third quarter to date. HSS now expects full year Ebitda, to be ahead of market expectations.
Current stock price: 19.74 pence, up 13% on Thursday
Year-to-date change: up 84%
By Will Paige; willpaige@alliancenews.com
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Hss Hire (HSS)