Losses deepen at HSS Hire
By Helen Wright07 April 2016
Despite reporting 10% revenue growth in 2015 to £312 million (€387 million), UK rental company HSS Hire reported a deeper full-year loss last year than in 2014.
The company said its loss for the financial year stood at £14 million (€17 million), compared to the the £5.5 million (€6.8 million) loss it booked in 2014. It said challenging market conditions lead to lower revenue growth and impacted profitability, while higher costs also took their toll.
The company acquired specialist heating and cooling provider All Seasons Hire last year, opened 50 new local branches and made progress on the opening of its National Distribution and Engineering Centre. The company invested £65 million (€81 million) in its fleet in 2015.
CEO John Gill said the company had taken action to rebase its costs and build more flexibility into its operating model.
“We expect to see the full year benefit of the cost reduction programme implemented in the second half of 2015 delivered through 2016.
“We also expect to reduce our capital expenditure, following two strong years of fleet investment and the opening of our new National Distribution and Engineering Centre in the first half of 2016. Together with the cost reduction programme, we expect these actions to improve our cash generation and financial performance,” Mr Gill said.
The company said first quarter 2016 trading had been ahead of the same three months last year, with more stable conditions continuing from the final quarter of 2015.