Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

HSS Hire shares jump as it identifies further costs savings to lift profits

HSS Hire has laid out its financial targets to achieve by 2020
HSS is working on its turnaround

HSS Hire Group PLC (LON:HSS) said a strategic review has identified further cost savings to reduce leverage and lift profits as the tool hire company overhauls the business.

A further £10mln- £14mln in cost savings have been identified, on top of the £13mln of annualised savings announced in the third quarter trading update in November.

READ: HSS's cost savings initiatives contribute to an improving profits trend

HSS will focus on the tool hire business and more profitable opportunities in local markets, while continuing to improve its digital offering.

The company said these actions will deliver a “significantly improved business performance”. 

By 2020, the group aims to achieve revenue growth in line with the market, an increase in rental revenue ahead of the market, an underlying earnings (EBITDA) margin higher than 20%, leverage of less than three times and return on assets above 20%.

“Our strategic review, the most detailed in the company's history, has provided us with deep insights on HSS's trading performance and enabled us to devise a clear and actionable set of priorities,” said chief executive Steve Ashmore.

“We have made progress over the past six months to return the business to operating profitability, providing us with a platform from which to make further improvements.”

READ: HSS Hire's boss steps down after annual losses widen

The third quarter trading update revealed the group had enjoyed its fifth successive month of positive EBITA while underlying rental revenue was flat.

Shares rose 5.58% to 30.75p in morning trading. 

View full HSS profile View Profile

HSS Hire Group Timeline

Related Articles

H&T Pawnbrokers store
July 02 2018
Last year the company saw gross profits jump 45% thanks to a booming personal loan book and robust sales of luxury second-hand watches and jewellery.
Flying Brands
July 17 2018
“We look forward to the future with confidence and excitement," said Flying Brands boss Trevor Brown.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use