HSS Hire earnings and revenue rise as recovery gains momentum

Tool and equipment hire firm HSS Hire posted a jump in first-quarter earnings and revenue on Thursday as its recovery gains momentum.

In the 13 weeks to the end of March, adjusted earnings before interest, taxes, depreciation and amortisation were up 64.3% to £13.8m, on revenue of £84.4m, up 5.2%, with the recovery in underlying core rental seen in the final quarter of last year continuing into the first quarter of 2018.

During the quarter, net leverage reduced to 4.2x from 4.8x the year before, and net debt edged down to £225.8m from £226.3m.

Chief executive officer Steve Ashmore said: "We have started 2018 positively and our recovery is now well established and gaining momentum. The business is trading well delivering adjusted EBITDA that is materially higher than the prior year and driving margin progress through cost savings and growth in core rental revenue.

"I am particularly pleased with the progress we are making on our strategic priorities. At the beginning of April we moved to the new distribution model, a significant operational change which was delivered flawlessly and is now well embedded. This significant change will not only deliver long term cost savings but also enable us to better serve our customers.

"Looking ahead, we are encouraged by the positive trend in trading and remain focused on our strategic priorities so that the business can deliver on its full potential."

At 1050 BST, the shares were up 6.3% to 34p.