Last checked at 7 Apr 2021 07:00
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement
7th April 2021
HSS Hire Group plc
("HSS" or the "Group")
Sale of Laois Hire Services Limited
HSS announces that it has entered into an unconditional agreement to sell Laois Hire Services Limited ("Laois"), the Group's Irish large plant hire business, to Briggs Equipment Ireland Limited ("Briggs"), for a cash consideration of €11.2 million (the "Disposal").
The proceeds will be used to invest in the core Tool Hire business in line with the Group's strategy. With Laois representing around 4% of Group revenue for the year ended 28 December 2019, the Directors believe that the consideration represents an attractive valuation for shareholders.
As part of this transaction, HSS has entered into a commercial agreement with Briggs for the cross hire of equipment to ensure the broadest possible distribution of, and customer access to, the parties existing fleets.
HSS expects to report its 2020 full year results week commencing 26th April 2021 and confirms that trading for the year was in line with management expectations. The Group has seen encouraging momentum during the first three months of 2021 and EBITDA for the period to 3rd April 2021 is comfortably ahead of the comparable prior year period.
Steve Ashmore, Chief Executive, commented:
"Over the last four years, we have made substantial progress against all three of our strategic priorities: to delever the Group, transform the Tool Hire business and strengthen our commercial proposition. During this time we have transformed HSS to a modern, agile, technology-driven business, improving trading, reducing cost and increasing the overall profitability of the Group. Today's announcement is another step forward on our strategy, enabling us to increase focus on our core Tool Hire business.
Laois has made a good contribution to the Group over recent years and I would like to thank the team for their commitment. I am very pleased that the business will be joining Briggs who recognise its value and whose expertise will help it reach its full potential.
Given HSS's existing partnership with Briggs, we will continue to provide our customers in the Republic of Ireland with all of their large plant requirements."
Notes:
Enquiries:
HSS Hire Group plc | Tel: 020 3757 9248 |
Steve Ashmore, Chief Executive Officer | Email: Investors@hss.com |
Paul Quested, Chief Financial Officer |
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Greig Thomas, Head of Group Finance |
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Numis Securities Stuart Skinner / George Price
| Tel: 020 7260 1000 |
Teneo (Public Relations Adviser) | Tel: 020 3757 9248 |
Tom Davies / Charles Armitstead |
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Notes to editors:
About HSS Hire
HSS Hire Group plc provides tool and equipment hire and related services in the UK and Ireland through a nationwide network and its OneCall rehire business. It offers a one-stop shop for all equipment through a combination of its complementary rental and re-hire business to a diverse, predominantly B2B customer base serving a range of end markets and activities. Over 90% of its revenues come from business customers. HSS is listed on the AIM Market of the London Stock Exchange. For more information please see www.hsshiregroup.com
About Laois
Laois Hire Services Limited specialises in the sale and hire of small plant equipment, including excavators, rollers, dumpers and large pumps, across the Republic of Ireland serving a wide multitude of sectors from Construction to Traffic Management. Laois was acquired in 2005. As at 27th June 2020, Laois had total gross assets of €10.6 million and made a loss before tax of €1.8 million for the year ended 28 December 2019.
About Briggs Equipment
Briggs Equipment is an engineering services and asset management specialist that has transformed the contract hire of industrial machinery. Operating throughout the UK & Ireland, Briggs has a wide ranging proposition that extends beyond materials handling. In addition to being the Hyster-Yale Group's exclusive UK distributor, Briggs has many other strategic partnerships with suppliers that provide industrial cleaning, aerial access, groundworks, plant and machinery. For more information please visit briggsequipment.co.uk
Disclaimer:
This announcement contains forward-looking statements relating to the business, financial performance and results of HSS Hire Group plc and the industry in which HSS Hire Group plc operates. These statements may be identified by words such as "expect", "believe", "estimate", "plan", "target", or "forecast" and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements and neither HSS Hire Group plc nor any other person accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. No obligation is assumed to update any forward-looking statements.