HSS back in the dark after strong period of interim trading
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Manchester-based tool rental group HSS returned to half-yearly profit, interim figures revealed today.
In the six months to July 3 it recorded sales of £ 150.5million, up from £ 120.7million the year before, while a pre-tax loss of £ 12.9million pounds sterling in 2020 has turned into a pre-tax profit of £ 11.2million this year. .
HSS further strengthened its balance sheet during the reporting period, with net debt further reduced to £ 97.6million from £ 120.4million at the end of fiscal 2020. The sale of Laois s ‘is completed in April 2021, for 11.2 million euros, and said that effective management of working capital has been maintained, while outstanding debt remains at low levels.
Revealing its current trading and outlook, the group said revenue, EBITDA and EBITA were all above management’s expectations in the third quarter of 2021 to date.
Management now expects EBITDA for the full year, based on continuing operations not in accordance with IFRS16, to be ahead of market expectations and for EBITA to be significantly lower. advance.
The sale of All Seasons Hire was completed on September 29, for a gross amount of £ 55million, with the proceeds to be used to further reduce debt.
A refinancing process is underway and HSS is well positioned for a significant reduction in the group’s interest charges, he said.
Managing Director Steve Ashmore said: “The first half of 2021 has been marked by significant progress and I am very pleased with what we have achieved.
“We started the year with strong momentum and trade continued to improve over the period, with Q2 21 revenue at 102% of 2019 levels, EBITDA and EBITA margins on the rise and ROCE at a record level.
“This strong performance, combined with the post-close sale of All Seasons Hire, allowed us to reduce leverage to around 1.0x, well below our target of 2.0x, thus completing the last element of the strategic plan defined in 2017, to reduce the group’s debt, transform the tool rental activity and strengthen our commercial proposition.
He added: “The group has made great strides in the past four years, so today’s HSS is unrecognizable from the HSS of 2017.
“Our unmatched digital capabilities allow us to deliver what our customers need, when they need it, by meeting demand through our supply chain of more than 500 partners.
“By leveraging our differentiated customer offering, our highly evolved technology platform, and our scalable structure built around two key divisions, we are uniquely positioned to capitalize on market opportunities as we enter the exciting next phase of our growth. “