HSS revenue in line with forecast, warns over possible slowdown next year

HSS Hire Group said revenue for the first three quarters of the year was in line with guidance, although the tool and equipment hire company warned growth in 2016 could be slower than expected.

In the 39 weeks to 26 September, overall trading was in line with its expectations, with revenue increasing 11% year-on-year to £230.8m, the London-listed company said on Wednesday, adding that HSS the markets stabilised in September after two volatile months, leading it to reiterate its guidance for revenue growth of between 8% and 11% for this year.

HSS said it expects the roll-out of new branches, a boost from the All Seasons Hire business it acquired earlier this year and its investments made in specialist hire fleets to drive revenue growth next year, although it warned its branch opening rate will be slower than in 2015, which could affect trading.

However, the group remained upbeat over the medium-term outlook, despite a competitive market environment and said it was selectively tendering for work and has implemented cost cutting measures, adding cost savings for the fourth quarter are forecast to be in line with expectations.

HSS shares were up 0.61% to 46.53p at 1042 GMT on Wednesday.