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Fri March 29 2024

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HSS posts £23.6m loss

29 Apr 21 Tool hire chain HSS Hire says that its strategy is delivering improved performance but it still cannot make a profit.

Yeah, but would you have made any money out of it?
Yeah, but would you have made any money out of it?

In the year to 26th December 2020, HSS Hire made a pre-tax loss of £23.6m (2019: £5.8m loss).

It also shut down 134 of its 234 locations and laid off 300 employees during the year.

HSS has never made a profit since Exponent Private Equity floated it on the London Stock Exchange in 2015, three years after buying it.

With Covid-19 restrictions having an impact , revenue for 2020 was down 18% at £269.9m

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Chief executive Steve Ashmore said: "HSS has delivered a resilient performance in a year of unprecedented disruption. The onset of the pandemic had a significant impact across our markets but decisive action to preserve cash and adapt our business supported a strong recovery in the second half of the year with EBITDA ahead of 2019 levels in the final quarter.

“During the course of the year, we took the decision to accelerate the implementation of our strategy. By increasing our focus on digital platforms, closing 134 of our branches, and partnering with builders’ merchants, we have been able to maintain national coverage while significantly reducing fixed costs. We are grateful for the overwhelming shareholder support for our strategy and in October successfully completed a £53m capital raise, further strengthening our balance sheet.”

He added: “I believe the business is in great shape to deliver on our strategy and our performance framework. We are well positioned with a more agile cost base, a superior, digitally-led proposition and a strengthened balance sheet, allowing us to continue achieving our strategic goals and differentiating in this fragmented market. We retain our vision of being the market-leading digitally-led brand for equipment services.”

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