23rd May 2019 10:16
LONDON (Alliance News) - Equipment rental firm HSS Hire Group PLC said Thursday it has made a "good" start to 2019, as first quarter revenue and profit both improved markedly on the year prior.
For the three months ended March, adjusted earnings before interest, taxes, depreciation and amortisation widened 19% to GBP13.1 million from GBP11.0 million the year prior. This was after revenue rose 6.5% to GBP82.2 million from GBP77.2 million the year before.
Revenue performance was helped by like-for-like Rental unit revenue rising 1.5% and Services revenue jumping 8.0%. Meanwhile, profit was helped by Ebitda margins improving to 15.9% from 14.3% the year prior.
Trading for the first seven weeks of the second quarter was as expected. For 2019, HSS expects adjusted Ebitda to be in line with market expectations.
"I am pleased to report a good start to the year with growth in revenue and profit which, with the disposal of UK Platforms, resulted in a significant reduction in leverage", HSS Chief Executive Officer Steve Ashmore said.
In July 2018, HSS sold its UK Platforms business for GBP47.5 million. Of these proceeds, its used GBP32 million to reduce its term debt facility.
"As we set out in April the next phase of our strategy is focused on strengthening our customer proposition," Ashmore added. "We are pleased with the reaction to the recent launch of the customer app in our Rental business and the transformation of our OneCall Rehire business is proceeding to plan."
"While the broader economic outlook remains uncertain, our leaner operating model, excellent market positions and clear strategy leave us well placed to continue to grow share in any market," Ashmore concluded.
Shares in HSS were 3.9% higher at 37.00 pence on Thursday.
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