Last checked at 30 Jun 2021 07:00
30 June 2021
HSS Hire Group Plc
Trading update and AGM statement
"EBITA expected to be materially ahead of expectations"
HSS Hire Group plc ("HSS" or the "Group") provides the following trading update ahead of its Annual General Meeting later today.
Building on the encouraging momentum in Q1 2021, trading has continued to improve since the Group reported its 2020 year end results, with underlying1 revenues in Q2 2021 at 102% of FY19 levels.
Q2 2021 EBITDA2 and EBITA2 remain ahead of the comparable FY19 levels with the Group's digitally-led, lower cost operating model delivering further margin expansion. Based on the performance in the second quarter, EBITDA2 for 2021 is expected to be slightly ahead of market expectations and EBITA2 is now expected to be materially ahead of expectations, including the benefit of reduced depreciation following the change in operating model.
Cash collection has also remained strong throughout the quarter and, combined with improved profitability, we expect to achieve our net debt leverage2 2021 exit rate target of below 2x at the half-year.
The Board will provide further details on Group performance at HSS' 2021 half year results update, expected to be held in September 2021.
Steve Ashmore, Chief Executive, commented:
"We are very pleased with how the Group has continued to perform. Our strong operating profit performance, ahead of 2019 levels, is testament to the effectiveness of our digital strategy. Our embedded technology platforms combined with our partnership with builders merchants has allowed us to maintain national coverage while significantly lowering fixed costs and improving margins. Supported by very strong cash collection, we anticipate achieving our 2021 net debt leverage target of below 2x six months ahead of schedule. This strong performance has given us further confidence in our digital-focused model as we continue to build on our differentiated commercial proposition and capitalise on the market opportunities ahead of us."
-Ends-
Notes:
1) Underlying excludes impact of loss of Services volume associated with FY19 announced change to one managed service contract and Laois Hire, disposed of 7th April 2021.
2) Pre-IFRS16 basis
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: 075 5749 1860 |
Tom Davies / Charles Armitstead |
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Notes to editors:
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.
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.