29th Jun 2015 06:38
LONDON (Alliance News) - Tool and equipment hire company HSS Hire Group PLC on Monday said trading in April and May was marginally weaker than its expectations due to some weakness in its key accounts business and reduced demand for cooling equipment.
HSS said, however, that trading returned to normal levels in June, with order books building for the second half of the year.
The company says it thinks it won market share in the second quarter of 2015 and expects to post high single-digit organic growth, but said that this, in combination with start-up costs associated with new branches opened in the second quarter, means its adjusted earnings before interest, taxation, depreciation and amortisation in the first half will be broadly flat year-on-year. Adjusted EBITDA for the company also strips out exceptional costs.
Elsewhere, HSS said its local branch roll-out has continued on track and said it won some Key Account contracts in the first half which will boost its second-half revenue. The group also said All Seasons Hire, which it acquired in May, is integrating on track and said initial customer feedback has been positive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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