HSS maintains growth but investment lowers profits

HSS Hire maintained its growth in the third quarter of the year although profits were impacted by the company's investment in its new logistics and operational platform.

The company said it expected continued steady growth through the rest of the year, despite challenging economic conditions.

Third quarter revenues were up 5% to £46.9 million, with EBITDA profits down 7.5% to £11.2 million, which HSS said reflected roll-out costs of its new logistics operation.

Chris Davies, chief executive at HSS Hire, said the new logistics system would be in place by the end of 2011; "Whilst costs associated with supporting this transition have impacted our earnings in the short term, we have now laid the foundations for strong efficiency gains, higher utilisation and service level improvements into 2012."

During the quarter the company announced major contract wins including a five year sole supplier agreement with British Waterways and a multi-million pound strategic alliance with Enterprise, a large infrastructure maintenance business.

The company invested £8.2 million in the quarter, a 30% increase compared with the same quarter in 2010.