Executive Hire News Executive Hire News
Executive Hire News Executive Hire News Executive Hire News
Executive Hire News
Executive Hire News Home About Executive Hire News Executive Hire News Latest industry news Executive Hire News What's new Executive Hire News Events diary Executive Hire News EHN archives Executive Hire News Executive Hire Show Executive Hire News Advertise Executive Hire News Contact us
Executive Hire News
Latest industry news

August 30, 2017

HSS reports half-year loss

Filed under: Latest News — EHN Team @ 10:16 am

HSS has announced half-year results for the 26-week period ended 1 July 2017, showing that revenue was £160.5m, 3.4% below the first half of 2016 (£166.2m). This gave a loss before tax of £30.1m, compared to a loss of £7.8m in the same period last year.

The company says this reflects an additional week of trading last year, the closure of 68 depots in the last 12 months, and weaker performance in hire revenues, impacted by the group’s operating model change in 2016 and early 2017.

On an underlying basis, adjusting for the 53rd week and the branch closures, revenues are broadly flat, with marginal growth year-on-year within Q2, it says. Rental and related revenues were £119.3m in H1 2017, £9.5m or 7.3% lower than in the same period last year. HSS says that sales initiatives implemented in March 2017 have delivered revenue growth in core markets and that further work is underway to extend these into more markets.

Chief Executive Officer, Steve Ashmore, said: “While significant operational change was achieved during H1 17, both Rental revenue growth and the cost base were temporarily impacted leading to reduced profitability.

“We are facing into these challenges by taking decisive action to reinvigorate Rental revenue growth through the implementation of new sales initiatives and by rolling-out cost actions that will deliver annualised cost savings of c. £13m, a number of which are enabled by the recent investment in our centralised engineering and distribution capability. As a result of these actions the Group returned to profitability in June with revenue in growth for the first eight weeks of Q3 17 and this momentum will result in a stronger H2 relative to H1 performance leading to a healthier exit rate as we head into 2018.

“Whilst the rate of recovery in our Rental revenues has been positive, it has been materially slower than originally targeted leading to lower than expected profitability over this period. On this basis we expect H2 adjusted EBITA profit to be in the range of £8m to £11m.”

Mr Ashmore, who was appointed on 1 June, said, “The new leadership team is currently conducting a thorough review of the Group’s strategy to gain profitable share in what remains an attractive and fragmented market. We will update the market on the outcome of this process during Q4 17.”

Executive Hire News

Latest industry news archives

Executive Hire News
 Site map
Executive Hire News
Privacy policy 
Executive Hire News
Executive Hire News
Executive Hire News
Executive Hire News Executive Hire News