HSS Hire sees trading slow 'considerably', shares fall

The tools and equipment hire specialist reported a 6% increase in revenues in the 26 weeks to 1 July, to £170.1m, while pre-tax profits fell by £1m to £5.5m.

Adjusted earnings before interest, tax, depreciation and amortisation were down 3% to £32.1m.

HSS called the results "solid". It said the numbers were ahead of the market and demonstrated "positive progress against its strategic initiatives".

But it also warned that the second half had been hit by the weaker macro environment, causing trading in the first 12 weeks to slow "considerably" to 2%. Sales were 6.3% in the same period a year previously.

Full-year adjusted earnings before interest, tax and amortisation are now expected to come in between £23m and £30m. Last year HSS reported adjusted EBIT of £32m.

As at 1100 BST, shares in the AIM-listed firm were down 8% at 9.5p.

Steve Ashmore, chief executive, said: "The macro environment has become more challenging from July; we have experienced significantly volatility of demand in our rental segment over the last few weeks, which has widened the range of possible performance outcomes for the balance of the year.

"However, this will be temporary and we therefore plan to leverage our robust balance sheet to sustain investment in the business, implementing our strategy to ensure HSS can take full advantage of the market when it recovers."