HSS Hire Group PLC Q1 19 Trading Update (9165Z)
May 23 2019 - 2:00AM
UK Regulatory
TIDMHSS
RNS Number : 9165Z
HSS Hire Group PLC
23 May 2019
23 May 2019
HSS Hire Group plc
Q1 19 Trading Update
Q1 results for the 13 week period ended 30 March 2019
HSS Hire Group plc ("HSS" or the "Group"), today announces an
update on the performance of the Group for the 13 week period ended
30 March 2019.
Positive start to the year
Financial Highlights Q1 19 Q1 18 Change
- Q1(1)
(Unaudited) (13 weeks) (13 weeks)
Revenue GBP82.2m GBP77.2m 6.5%
----------- ----------- -------
Adjusted EBITDA(2,3) GBP13.1m GBP11.0m 18.6%
----------- ----------- -------
Adjusted EBITDA margin 15.9% 14.3% 1.6pp
----------- ----------- -------
Adjusted EBITA(3,4) GBP3.4m GBP0.3m GBP3.1m
----------- ----------- -------
Adjusted EBITA margin 4.2% 0.3% 3.9pp
----------- ----------- -------
Net debt leverage(5) 2.9x 4.2x 1.3x
----------- ----------- -------
To aid comparison with Q1 18 Q1 19 results are presented
excluding the impact of implementing IFRS16 Leases
Good growth in revenue and profit with significant reduction in
leverage
-- Adjusted EBITDA growth of 18.6%, margins improved 1.6pp to 15.9%
-- Revenue growth of 6.5%, with like-for-like Rental and
Services revenue increasing 1.5% and 8.0% respectively(6)
-- Significant reduction in net debt leverage to 2.9x (Q1 18
4.2x) through improved trading and UK Platforms disposal(5)
-- Trading in line with expectations for the first seven weeks of Q2 19
-- Expect full year EBITDA to be in line with market expectations
Steve Ashmore, Chief Executive Officer of HSS Hire Group plc,
said:
"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.
As we set out in April the next phase of our strategy is focused
on strengthening our customer proposition. 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."
Notes:
1) Results for Q1 19 and Q1 18 are for continuing operations and
exclude the UK Platforms business which was sold in January 2019,
except where separately disclosed
2) Adjusted EBITDA is defined as operating profit before
depreciation, amortisation, and exceptional items. For this purpose
depreciation includes the net book value of hire stock losses and
write offs, and the net book value of other fixed asset disposals
less the proceeds on those disposals.
3) To aid comparability with prior year, results are stated without the impact of IFRS16.
4) Adjusted EBITA defined as Adjusted EBITDA less depreciation
5) Net debt leverage is calculated as closing net debt as at 30
March 2019 divided by adjusted EBITDA for last 12 months (LTM). Q1
19 LTM EBITDA excludes UK Platforms, Q1 18 includes UK
Platforms
6) Rental and Services revenue growth on a like-for-like basis
to reflect disposal of UK Platforms and the ongoing supply
agreement with its new owner
Ends
Disclaimer:
This announcement contains forward-looking statements relating
to the business, financial performance and results of HSS Hire
Group plc and the industry in which HSS Hire Group plc operates.
These statements may be identified by words such as "expect",
"believe", "estimate", "plan", "target", or "forecast" and similar
expressions, or by their context. These statements are made on the
basis of current knowledge and assumptions and involve risks and
uncertainties. Various factors could cause actual future results,
performance or events to differ materially from those described in
these statements and neither HSS Hire Group plc nor any other
person accepts any responsibility for the accuracy of the opinions
expressed in this presentation or the underlying assumptions. No
obligation is assumed to update any forward-looking statements.
For further information, please contact:
HSS Hire Group plc Tel: 020 3757 9248
Steve Ashmore, Chief Executive Thereafter, please email: Investors@hss.com
Officer
Paul Quested, Chief Financial
Officer
Greig Thomas, Head of Group
Finance
Teneo Tel: 020 3757 9248
Robert Morgan
Tom Davies
Notes to editors
HSS Hire Group plc provides tool and equipment hire, re-hire and
related services in the UK and Ireland through a nationwide network
of over 240 locations and its OneCall re-hire business. It offers a
one-stop shop for all equipment through a combination of our
complementary rental and re-hire businesses to a diverse,
predominantly B2B customer base serving a range of end markets and
activities. Over 90% of its revenues come from business customers.
HSS is listed on the Main Market of the London Stock Exchange. For
more information please see www.hsshiregroup.com.
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END
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