25th May 2016 07:55
LONDON (Alliance News) - HSS Hire Group PLC said there were some signs of softness in the broader UK economy in its first quarter, but nonetheless said it had traded in line in the period, as it appointed Paul Quested as its chief financial officer.
The tool and equipment hire company posted revenue of GBP84.3 million for the 14 week period ended April 2, up 16% from GBP72.5 million a year before, with "continued growth" in both its core and specialist businesses.
HSS Hire said revenue in its Core business grew by 16% to GBP71.9 million for the period, from GBP62.1 million a year previously, which it said reflected strong growth in its specialist kit provider OneCall and training centre business Training. Revenue in HSS's Specialist division grew 18% to GBP12.4 million from GBP10.5 million, 6.1% of which was due due to the inclusion of revenues from tool and equipment hire company All Seasons Hire, which HSS acquired in May 2015.
Net debt came in higher than a year earlier at GBP234.0 million from GBP218.1 million, which reflected a capital expenditure settlement, two quarterly rental payments, and set-up costs relating to its National Distribution and Engineering Centre, it said.
HSS Hire added that market conditions remain very competitive with some signs of softness in the broader UK economy, but said trading in the second quarter of the current financial year had started ahead of the same period a year earlier.
"Our fleet investment will remain demand-led in line with our aim to drive capital efficiency through the business," HSS Hire added.
The update came as HSS Hire appointed Paul Quested as its chief financial officer, saying Quested will join the group and become an executive member of the board with effect from August 22.
Quested is currently chief corporate development officer of FTSE 250 engineering products distributor Electrocomponents PLC, HSS Hire said, and will bring to HSS a "broad range of financial, operational and strategy experience across global multi-site businesses".
Steve Bailey, who was appointed as interim chief financial officer on April 20, will continue working within the business for a period of time to provide a "smooth handover of chief financial officer responsibilities".
Shares in HSS Hire were down 7.1% at 93.40 pence on Wednesday. Electrocomponents was down 0.6% at 281.30p.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Hss Hire