Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Sat October 22 2016

Related Information
Related Information
Related Information
Related Information

News » Plant » HSS continues to lose money » published 31 Aug 2016

HSS continues to lose money

Tool hire group HSS has managed to reduce its half-year losses thanks to lower finance expenses.

For the 27 week period ended 2nd July 2016, HSS Hire Group made a pre-tax loss of £9.8m. For the same period in 2015 it lost £14.1m, although that figure include £3.0m exceptional expenses relating to February 2015’s initial public offering. Finance expenses were £12.8m the first half of last year and £7.2m this time around.

At an operating level, however, losses actually widened to £2.6m (2015 H1: £1.5m loss).

Revenue was up 13.5% to £166.2m (2015 H1: £146.4m).

Exceptional costs this year include £5.9m spent on setting up a new National Distribution and Engineering Centre, which now supports 50% of the branch network.

Despite deteriorating margins, the board said that it was making ‘significant progress’ and that the losses were ‘mainly due to exceptional costs associated with strategy execution’.

Chief executive John Gill said: "We are confident our new National Distribution and Engineering Centre will position us well for scale and volume growth and, combined with our e-commerce platform and national branch footprint, will further enhance our customer proposition by transforming availability within our sector. The board believes we are well positioned to take advantage of, and continues to look for, opportunities to increase scale for the benefit of customers and shareholders."

However, the biggest shareholder in HSS wants it to merge with Speedy. Toscafund owns or represents 18% of HSS shares and 19% of Speedy. The chairmen of the two companies have had several meetings to explore merging but have so far resisted pressure from their major shareholder.






Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 31 Aug 2016 (last updated on 1 Sep 2016).

More News Channels