HSS Hire Group PLC Trading and Strategy Progress Update (7885E)
14 February 2018 - 6:00PM
UK Regulatory
TIDMHSS
RNS Number : 7885E
HSS Hire Group PLC
14 February 2018
14 February 2018
HSS Hire Group plc
HSS reaffirms guidance and updates on strategy progress
HSS Hire Group plc ("HSS" or the "Group") issues the following
update ahead of the publication of its full year results for the 52
weeks ending 30 December 2017 on 5 April 2018.
Trading
Since HSS last updated the market on 29(th) November 2017,
trading has been positive with the Group maintaining solid
momentum. The Board is pleased to reaffirm that full year
performance is in line with guidance given in August, of H2
adjusted EBITA of between GBP8m and GBP11m.
Revolving Credit Facility
HSS also announces that it has successfully agreed with its
lenders to extend the GBP80m revolving credit facility (RCF), which
will now mature in July 2019. Management continues to make good
progress towards refinancing the Group and expects to complete this
during 2018.
Strategic Review Progress Update - Network changes
In the Strategic Review announced in December last year,
management outlined initiatives to reduce costs by GBP10m-GBP14m
annually, of which GBP7m-GBP10m related to changes in the supply
chain model. We are pleased to announce that agreement has been
reached with Unipart, who operate the Group's National Distribution
and Engineering Centre, to make changes to our supply chain
enabling the realisation of cost benefits at the higher end of this
range.
In the first half of 2018, the testing and repair of all
fast-moving products will be completed closer to HSS's customers,
using the Group's skilled colleagues across our network of
distribution centres and branches. This change will mean far better
levels of utilisation and efficiency for the Group, with improved
availability for customers as more products will be available for
hire in branches. As part of these changes, the Group will
recognise a provision for exceptional costs of approximately
GBP40m, including an impairment of related assets of GBP7m. This is
expected to give rise to a net cash outflow of GBP2-3m in 2018,
followed by net cash inflows of GBP7-GBP8m annually over the
following seven years.
Steve Ashmore, Chief Executive Officer of HSS Hire Group plc
said:
"We continue to make good progress in implementing our strategy
and today's announcement is a significant milestone in delivering
further cost savings in our supply chain. With clear implementation
plans and highly engaged teams, who have responded positively to
the proposed changes, we are confident in achieving savings towards
the top end of our targeted range. This operational progress,
combined with the extension of our bank facilities and positive Q4
performance, creates a strong platform to build upon in 2018 and
beyond."
-Ends-
For further information, please contact:
HSS Hire Group plc Tel: 020 3757 9248 (on
14(th) February 2018)
(parent company of Hero Thereafter, please email:
Acquisitions Limited) Investors@hss.com
Paul Quested, Chief Financial
Officer
Jonathan Edwards, Investor
Relations, Treasury and
Special Projects Manager
Teneo Blue Rubicon Tel: 020 3757 9248
Robert Morgan
Shona Buchanan
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.
Notes to editors
HSS Hire Group plc provides tool and equipment hire and related
services in the UK and Ireland through a nationwide network of over
250 locations. Focusing primarily on the maintain and operate
segments of the market, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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