25th Nov 2015 08:18
LONDON (Alliance News) - Tool and equipment hire company HSS Hire Group PLC on Wednesday said its revenue growth for the first nine months met its expectations, but it warned its growth in 2016 could prove slower than initially expected.
HSS said its revenue growth for 2016 is set to be driven by the roll-out of new branches, a boost from the All Seasons Hire business it acquired and its investments made in specialist hire fleets. However, the group expects its branch opening rate to be slower than in 2015, putting a cautious stamp on the outlook.
For the 39 weeks to September 26, overall trading was in line with its expectations, with revenue at GBP230.8 million, up 11% year-on-year. HSS said following the variable nature of its markets in July and August, some stability emerged in September, helping it to affirmed its guidance for revenue growth of 8.0-11% for this year.
HSS said the market remains competitive, with evidence of more tender activity among larger corporate clients. HSS said it is selectively tendering for work and has been taking actions to reduce its cost base. It anticipates cost savings for the fourth quarter to be in line with its previous expectations.
Share in HSS Hire were down 0.5% to 46.00 pence on Wednesday, shortly after market open.
By Sam Unsted; [email protected]; @SamUAtAlliance
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