HSS up 12% but growth levels to slow
By Murray Pollok10 May 2011
HSS Hire's revenues in the first quarter of 2011 grew by 12% to £46.9 million with EBITDA profits up 21% to £11.2 million. HSS said its results were "strongly ahead of market performance".
However, growth levels in the rest of the year are likely to be lower. The second quarter was impacted by national holidays, including the Royal Wedding, and the expiry of the Network Rail supply contract will make itself felt through the entire year. HSS said it expected "steady growth" for the year.
Chris Davies, chief executive at HSS Hire, said he was encouraged that growth was occurring across a range of products and markets, and added; "This quarter we have been able to make significant investments in both our fleet and our colleague base which, together with sustained profitability and demonstrable growth, means that we are well placed for continued success over the months and years ahead."
HSS continues to expand its national accounts business, with revenues from these customers up 20% in the 12 months to 2 April. HSS said its hire fleet investment was now back at the levels of early 2008, before the market decline.
The company said it remained focused on organic growth, particularly through regional and key accounts.