HSS Hire Group CEO Chris Davies said he believes the company is “taking market share from competitors” after announcing a 15% revenue increase for the first quarter of 2015.
The results are for the first quarter end since HSS floated on the London Stock Exchange and the company said it remains on course to open 50 new branches by the end of the year.
Revenue reached £72.5 million (€102.3 million) compared to £62.9 million (€88.7 million) a year ago, with utilisation also up in both the company’s core and specialist businesses. Net debt fell from £214 million (€302 million) in 2014 to £167 million (€236 million).
Despite the increase in revenue, adjusted EBITDA - operating profit with depreciation, amortisation and exceptional costs added back - fell by 6.4% in the core business to £10.2 million (€14.4 million).
This reflected the cost of opening 13 new branches during the quarter, though a strong performance in the specialist business pushed overall adjusted EBITDA up by 9.2% to £15.4 million (€21.7 million).
“HSS delivered double digit revenue growth in both the core and specialist businesses,” said Mr Davies.
“This performance leads us to believe that we are successfully taking market share from our competitors, both local and national.
“In addition to customer demand-led investment in our hire fleet, we have continued to invest in our platforms for growth; opening new local branches, recruiting and training new sales colleagues, developing larger account relationships and growing specialist businesses that enhance our ability to serve our customer base.”
HSS said that second quarter trading so far was up on 2014, with a further seven branches already opened as well as the recent acquisition of the All Seasons Hire heating, ventilation and air conditioning business.
Interim results for the half-year to June will be announced on 26 August.