HSS Hire posts jump in full-year profits

Tool and equipment hire company HSS Hire reported a jump in full-year profit on Thursday thanks to double digit like-for-like revenue growth and "effective price and cost management".

In the year to the end of December 2022, adjusted pre-tax profit rose 95% to £21m, with revenues up 9.7% at £332.8m, or 10.7% higher on a like-for-like basis.

Revenues in the rental segment were up 7.9% to £206.2m, while the services business saw revenues grow 12.9% to £126.6m.

In rentals, HSS said it continued to drive improved conversion through HSS Pro, expanded the builders merchant network to 63 from 55 in December 2021 and increased hire fleet investment where customer demand and returns were strong.

In the services segment - which accounts for 38% of group revenue - HSS said customers continue to value "the one-stop shop" the division provides. In addition, the group said its technology platforms, supported by a large network of supply chain partners, "are making every transaction even easier and therefore enabled exceptional growth in the financial year".

Chief executive Steve Ashmore said: "HSS achieved a second consecutive year of double-digit revenue growth in 2022 with our technology-led strategy continuing to deliver strong results. The business has been restored to full health, supported by motivated and engaged colleagues who are fully embracing our innovative customer-offering.

"We have started 2023 well, building on the previous year's momentum, and our focus remains firmly on sustaining our growth and upholding our position as the technology frontrunner in our sector."