HSS Hire FY adjusted EBITDA seen 'marginally ahead' of expectations

Equipment hire business HSS Hire said on Thursday that full-year adjusted underlying earnings were now expected to be "marginally ahead" of market expectations.

HSS Hire said its "capital-light, technology-led operating model" helped it deliver "strong growth" in 2022, with unaudited like-for-like revenues up approximately 10% year-on-year, driven by "good results" through its rental business and the "continued excellent performance" of its services business.

The AIM-listed group added that its "strong cash generation" had resulted in net debt leverage on a non-IFR16 basis remaining below 1.0x and said the delivery of its HSS ProService technology roadmap remained "ahead of plan".

HSS also highlighted that trading momentum, underpinned by "effective strategy execution", had continued into 2023, with like-for-like revenue growth for the first eight weeks of the year at roughly 12%.

Chief executive Steve Ashmore said: "We are extremely pleased with the progress made in 2022, both in terms of financial performance and the implementation of our technology roadmap. Our strong focus on execution continues to underpin our momentum with a very positive start to the new financial year. While we remain mindful of the macroeconomic environment, HSS is well positioned for the year ahead."

As of 1050 GMT, HSS Hire shares rallied 7.56% to 13.15p.

Reporting by Iain Gilbert at Sharecast.com