HSS Hire returns to profit in third quarter

HSS Hire returned to profit in the third quarter after cost cuts helped it recover from a loss in the first half of the year.

October was the fifth straight month of rising underlying earnings though slightly behind management's expectations, the tool hire company said.

Earnings before interest, tax and amortisation were £6.6m in the three months to the end of September – the third quarter of the financial year. HSS suffered a £7.3m loss on that basis in the first half.

HSS rents out tools such as concrete mixers to tradesmen and people working on their homes. It has had a disastrous period since the business, previously owned by private equity firm Exponent, floated in February 2015.

The company posted two profit warnings in 2015 and another in 2016 as it suffered from fierce competition, including from rival Speedy Hire.

Chief executive Steve Ashmore said: "I am pleased to report that the group has returned to operating profitability during Q3 17, representing an improvement on our performance during H1 17. We are delivering to plan through the execution of decisive sales and cost reduction initiatives that we have taken over the past few months."