Last checked at 27 May 2015 07:00
27 May 2015
HSS Hire Group plc
Q1 Trading Update for HSS Hire Group plc
HSS Hire Group plc ("HSS" or the "Group") announces an update on the performance of the Group for the 13 week period ended 28 March 2015. The Group intends to provide such trading updates to shareholders for the first and third quarters of its financial year for the period the Senior Secured Notes are in issue.
In line with its reporting obligations to holders of its Senior Secured Notes, the Group's wholly-owned subsidiary Hero Acquisitions Limited has today provided an update to noteholders on its performance for the same period. Details for the results call for Hero Acquisitions Limited can be found at the end of this announcement.
Unaudited Financial Highlights for HSS Hire Group plc (1)
· | Q1 trading in line with expectations |
· | Revenue up 15.3% to £72.5m (Q1 14: £62.9m), with organic growth of 13.2% |
· | Adjusted EBITDA (2) up 9.2% to £15.4m (Q1 14: £14.1m) |
· | Net debt reduced to £167.3m at end of Q1 15 in line with expectations post IPO (Q1 14: £214.2m) |
Trading and Operational Highlights for HSS Hire Group plc
Trading in Q1 was in line with expectations with good volume growth in both the Core and Specialist businesses. Revenue in the Core business grew 12.4% to £62.7m (Q1 14: £55.8m), whilst Specialist revenue was up 36.1% to £9.8m (Q1 14: £7.2m). Utilisation improvements were achieved across the Group with Core utilisation up 1% to 47% (LTM Q1 14: 46%) and Specialist utilisation up 3% to 72% (LTM Q1 14: 69%).
As expected, adjusted EBITDA performance in the Core business at £10.2m was 6.4% lower (Q1 14: £10.9m) reflecting: the Group's cost investment in the planned roll-out of local branches (primarily new sales colleagues and rent & rates), with 13 new branches being opened in Q1 (2014: 4); the ongoing investment in rolling out the "HSS Way" process improvement initiative; and the additional operating costs required to support life as a plc. Adjusted EBITDA in the Specialist business grew 67.7% to £5.2m (Q1 14: £3.1m).
Key account wins through Q1 have helped build the pipeline for H2 FY15 and the Group remains on track to open 50 new local branches in FY15.
Current Trading and Outlook for HSS Hire Group plc
Trading in Q2 15 is ahead of Q2 14 with 7 new local branches opened to date, taking the total opened in the year to date to 20, with 30 further openings approved for the remainder of FY15. Alongside the local branch rollout strategy, the Group has continued to invest in its colleagues and operational processes to support its future growth plans and most recently, on 8 May 2015, HSS successfully completed the acquisition of All Seasons Hire, a specialist HVAC hire business.
Explanatory Notes:
1) Q1 14 numbers provided are for Hampshire Topco Limited, the holding company of the Group prior to the listing of new parent company HSS Hire Group plc on the London Stock Exchange in February 2015.
2) Adjusted EBITDA defined as Operating profit with depreciation, amortisation and exceptional costs added back.
Chris Davies, Chief Executive Officer of HSS, said:
"HSS delivered double digit revenue growth in both the Core and Specialist businesses through Q1. This performance leads us to believe that we are successfully taking market share from our competitors, both local and national. In addition to customer demand-led investment in our hire fleet, we have continued to invest in our platforms for growth; opening new local branches, recruiting and training new sales colleagues, developing larger account relationships and growing specialist businesses that enhance our ability to serve our customer base."
HSS Hire Group plc will announce its interim results for the 26 week period ended 27 June 2015 on 26 August 2015.
Update call for Hero Acquisitions Limited for holders of Senior Secured Notes
As required by the reporting obligations for the Senior Secured Notes, a conference call discussing the results of Hero Acquisitions Limited (a wholly owned subsidiary of HSS Hire Group plc) will be held for noteholders at 2.00 p.m. BST today. Details for this call and the accompanying presentation will be made available at www.hsshiregroup.com/investor-relations/senior-secured-notes/
For further information, please contact:
HSS Hire Group plc | Tel: (On 27 May 2015) 020 7638 9571 |
Chris Davies, Chief Executive Officer | Thereafter: 020 8260 3343 |
Steve Trowbridge, Chief Financial Officer |
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Citigate Dewe Rogerson | Tel: 020 7638 9571 |
Simon Rigby |
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Kevin Smith |
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Jos Bieneman |
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Note to editors
HSS Hire Group plc provides tool and equipment hire and related services in the UK and Ireland through a nationwide network of over 265 locations. Focusing primarily on the maintain and operate segments of the market, over 90% of its revenues come from business customers. HSS is listed on the Main Market of the London Stock Exchange, following its IPO in February 2015. For more information please see www.hsshiregroup.com.