27th May 2020 12:37
(Alliance News) - HSS Hire Group PLC on Wednesday reported a narrowed annual pretax loss following a modest revenue rise and lower administrative expenses, but said its second-quarter had been significantly hit by the Covid-19 pandemic.
Shares in HSS Hire were down 6.0% at 28.20 pence in London at midday.
The tool and equipment hire firm posted a GBP5.8 million loss for its year ended December 28, narrowed from GBP9.2 million the prior year, as revenue rose 1.6% to GBP328.0 million from GBP322.8 million.
Also aiding profit was a 2.8% decrease in administrative expenses to GBP128.8 million from GBP132.5 million.
In the first 12 weeks of its 2020 financial year, trading was in line with expectations albeit with some slowdown in the last week of march as the Covid-19 lockdown went into effect. However, after closing all branches in response to the pandemic, revenue in the first nine weeks of its second-quarter was around 40% below normal levels.
No guidance for financial 2020 could be provided given the lingering uncertainties relating to the pandemic.
Chief Executive Steve Ashmore said: "The outlook for the remainder of the year is uncertain but we have taken, and continue to take, action to reduce the impact of an extended period of lower revenues, albeit we have been encouraged by recent increases in activity. Our strategic ambitions remain unchanged with the pandemic demonstrating the importance of digital capability. Our digital transformation is well underway with the new customer app in tool hire gaining traction in our trial markets, and in the Services business where our new automated system has been very well received.
"We will continue to manage the business prudently through this crisis but also ensure we continue to progress our digital journey in order to create the most advanced, customer centric offer in the marketplace."
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Hss Hire