HSS Hire Group PLC (AIM:HSS) said it will reinstate its dividend after announcing an 11% increase in interim sales and forecast full-year profit will be in line with market expectations.
Underlying profit (adjusted EBITA) was £13.6mln in the 26 weeks to 2 July 2022, rising 18.3% from the same period last year on a like-for-like basis. Revenue was £159.9mln compared with £146.3mln previously.
Statutory pre-tax profit fell to £6.3mln from £6.8mln, reflecting the significant impact of exceptional credits in the prior year.
The tool hire company is proposing an interim dividend of 0.17p.
"I am very pleased with our performance in the first half of 2022. Despite the volatile macroeconomic backdrop, we achieved double-digit revenue growth with our capital-light, technology-led business providing flexibility and the data to deliver for our customers while effectively managing prices to navigate inflationary pressures,” said CEO Steve Ashmore.
“The board's decision to reinstate the dividend reflects the confidence it has in our long-term growth strategy.”
The company said revenue is up 10% so far in the third quarter, with EBITA meeting management expectations.
“While mindful of the macroeconomic backdrop we are confident that full-year EBITA will be in line with market expectations as our operating model continues to drive growth and further cement our position as a technology leader within the industry," Ashmore added.
Net debt stood at £49.3mln at the period-end, down from £97.6mln a year earlier, following strategic disposals last year.
Shares were 3.15% higher at 13.90p in early trade.