Member Info for Fevertreeman

HSS is not a candidate for administration - the business is under the cosh like multiple other small cap cyclicals becuase of (1) UK economic prospects & Labour performance to date damages confidence esp the construction sector (2) Interest rate falls seem to have stalled which hits HSS as their Senior Financing Facility is struck at SONIA + 2.75 -3.50, which as SONIA is 4.7%, HSS is paying interest costs of £4.5m to service it (c7- 8.5% p.a.), so until interest rates fall that continues to hit profits. (huge outflows last 3 years from UK equities esp small cap stocks). Balance sheet under circumstance is in reasonable shape, given the above and given HSS has been investing behind the digital & transformation strategy. Speedy Hire has same issues but has performed much better - the performance gap is to m y mind down to the time its taking to prove the strategy is working & unlocking value....

Governance at HSS: Amanda Burton resigned effective October 1st. She was the Senior Independent Director & one of only 2 independent Board members. Remarkably, 2 months on there is still no replacement ..leaving just the one INDEPENDENT BOARD MEMBER to hold management to account...as it stands the Board is anything but independent and that should be a big concern for most shareholders .

Remarkably, the Chairman Peterson is NOT INDEPENDENT because of his relationship with Exponent the major shareholder with the result that the AR (Page 57) contains a separate CONFLICT OF INTEREST paragraph:

" Exponent and the Exponent Shareholders currently control 33.43% of the Company’s issued shares. Thomas Sweet-Escott is a partner at Exponent and Alan Peterson obe has a long-standing business relationship with Exponent. The Group trades on an arm’s length basis with certain Exponent portfolio companies." And while it does go on to state that: "There are no current or potential conflicts of interest between any duties owed by the Directors or senior management to the Company and their private interests or other duties." the fact that he is retaining the Chair of the holding company

whilst becoming at the same time non-Executive Chairman of Operations and HSS Ireland, strikes me as unusual and/or a potential governance issue given that as Chair of the Group he he is responsible for among other things ( Annual Report Page 55 ): "the leadership and overall effectiveness in directing the Company, including demonstrating objective judgement and promoting a culture of openness and debate" Will be interesting to hear what others think?

He hasn't bought one single share in 4 years.....the governance of this company is truly truly shocking.

In light of decent director purchases from Speedy directors, post their results recently I decided to check out share purchases from our directors...its a truly shocking indictment of all that is wrong with the governance and management of this company as personified by Ashmore. Any guesses for last time he actually paid money i.e. bought rather than got granted shares? The answer is October 2020! And that was only as part of the 10p capital raise.....Just let that sink in for a moment...he has not purchased a single share with his own money in 4 years...a truly shocking example of leadership

Why did Ashmore NOT announce change of year end when he announced separation of the businesses & withdrawal of guidance at the Interims in Sept. It was the obvious point to make the announcement (and they would have known). His stewardship of the Group is awful. What value has he delivered?

Ashmore spends more time shifting the goalposts than the ground staff at Old Trafford! What is the Board doing to hold him to account? And what is Numis doing ? Shareholders are rightly fed up with him. There seems a deliberate pattern to this.

September 24 Interims: Ashmore uses the separation of the businesses as cover to withdraw Guidance and none of the analysts push him. So basically Ashmore deliberately is leaving investors & analysts in the dark. AND NOW HE DOUBLES DOWN BY changing the YEAR END RESULTS meaning that we will now have to wait till JULY-SEPT (LOOK HOW MUCH LEEWAY HE GAVE HIMESELF) to get a handle on performance.

Jury still out frankly. Despite welcome rally in sp, I think folk should remember Athens was a v.small study, even if AZ the sponsor. AstraZeneca 9M results out this morning.

I agree totally! The Rem Committee has been a shambles and overall governance is dreadful.

Given you backed the bloody strategy the least you could do is provide the right information on your own website!

HSS do not have a network of 250+ branches.

HSS current network consists of: 38 distribution centres, 39 standalone branches & 65 merchants. A total of 142

Exponent's blurb on their website about HSS (see below) shows just how hands-off they are. Do they even know they have a major holding? Do they care that Ashmore has cratered the share price, and bar the dividend delivered no capital appreciation at all? Judged on their descriptor I think the answer is 'NYET" Ashmore not mentioned; no mention of strategy change; no mention of disposals; in fat this reads like a different business:

"With customers including major multi-site businesses, local firms and private individuals across industries such as construction, facilities management and cleaning, HSS Hire has become the leading provider of tool and equipment hire and related services in the UK and Ireland.

When Exponent acquired the business, we partnered with the incumbent management team led by CEO Chris Davies, and Operating Chairperson Alan Peterson. Alan was previously CEO of leading UK builders merchant Meyer International and has held Chairperson roles in a number of successful private equity investments.

HSS Hire’s unique hub-and-spoke distribution model separates them in a crowded tool and equipment hire industry. The model allows HSS Hire to guarantee next morning delivery across its network of over 250 branches and distribution centres, and underpins the company’s reputation for high levels of product availability and strong customer service.

In February 2015, HSS was successfully listed on the LSE, with Exponent retaining a significant shareholding in the business.

Andrew Newland couldnt persuade rats out of Hamlin.

Share price was c11.75p. You have to hand it to Ashton, he has cratered the share price vs recovering peer group. Yes, the markets have been tough, but after 3 years of consistent underperformance, with yet more reorg ahead, Ashton seems in no hurry to deliver : " the potential to better unlock the value in each business and .....additional optionality to maximise value for shareholders." Indeed the EBITDA margins on ProService are dire ( c5-6%) vs the traditional hire business. If the medium term intention is to double Ops Margins...ffs that barely gets us into double digits!

Adams is a total charlatan with an abject history of broken timelines - as others know he's been promising money in the bank and sign off for multiple years and it never happens. GIven theat the mine isnt even bloody built, why punters fixate on his comments about the POG is beyond me.....another raise is coming to you shortly

Newland was at his evasive worse. To claim Recursion is one of teh 2 deals is hilarious - it is so small in revenue terms that Angle is probably paying them...and the fact that he stumbled around trying to remember who Recursion worked with speaks volumes. We also had the @blame the capital markets ' line when quite rightly quizzed about how he keeps tapping s/holders. Any competent CEO would have admitted that mistakes were made and how they were rectified. As for his blustery CFO...hopeless

Exponent & Ashton. The Our History tab on HSS website is hugely entertaining and is a ready reckoner on just how much value has been destroyed. Exponent took the whole caboodle private in 2012. Over next 3 years management acquired ABird, UKPlatforms, Apex & the HVAC business (sound familiar?).Exponent then float it in 2015.....in 2017 Ashmore recruited....and guess what he unwqinds all of the previous 3 years of acquisitions. Then in 2020 Covid hits and HSS have a capital raise of £53m. Since then Ashmore has spaffed tonnes of money whilst paying himself generously...and what is our market cap today? Well folks its less than the £53m raised 4 years ago. Take a bow the Board, Exponent & Ashmore ...current market cap is £45m , but apparently all is well ............

Doesnt sound that Nerwland was challenged by the audience? Great pity I couldnt make because if I had I would have asked why he misled s/holders on FY forecasts.

Not a single share purchased by the a** h**e Newland or his useless CFO Griffiths. Having shafted s/holders with b**sh88 at 15p, they dont even have the guts or confidence to invest at half that price. Newland takes his investors for fools, and is a coward

All down to the utterly unimpressive, dishonest CEO - Walter Mitty has nothing on Nero Newland.

What a useless CEO Ashton is. Relistened to his HY results presentation, and got bloody annoyed at his supercilious irritating impression of a competent CEO, but also his appalling attitude to the Co's dismal performance vs the sector.

Absolutely incredible that on the basis of the separation of teh 2 businesses which I note were already staffed up, Ashmore had the brass neck to withdraw guidance till further notice. No wonder the share price is tanked. If the CEO cant expalian why, things are bad. I think that this has sod all to do with the separation, and everything to do with teh loss of the AMEY contract come December. If on my watch as CEO I'd lost a contract worth £25 revenues & £2.3m EBITDA, Amey having signed a 2 year extension only to pull it after 12 months, I'd be explaining how this happened, why theres no cause for concern , and how the revenues are going to be replaced. But not Ashmore. Let' s hope that Tom Sweet-Escott the PE chappie most responsible for destroying value has the answer

Our bulls***CEO is matched a bulls*** Chairman. Here's their sign off from AR dated June 12th. Share price has halved since they signed off on this.

"With the continued drive to further sales of our products and services, continued assay development and the move towards third-party molecular systems, the Company is now well positioned to successfully deliver against its strategic objectives. It is against this backdrop of scientific and commercial momentum alongside careful control of costs, that the Board is confident in the Company’s commercial future delivering increasing value to shareholders."