HSS Hire Service Group: FIRST HALF YEAR RESULTS TO 2 JULY 2011

LONDON, August 4, 2011 -

Revenue and Profit Growth in the Half Year  
With Sustained Investment to Support Growth

HSS Hire Service Group (”HSS Hire”), the national supplier of tool and equipment and outsourcing services, today announced fiscal 2011 first half year revenue of £89.5m and EBITDA of £19.5m. Revenue grew 9.2% on a like-for-like basis over the same period of 2010. These results are ahead of market performance and the group continues to build on the strong performance in 2010. The new national logistic and maintenance programme incorporating full national 24-hour operation commenced roll out to plan and HSS Outsource Cleaning launched.

Financial highlights

• Revenue of £89.5m for the first half, ahead 9.2% over H1 2010 on a like-for-like basis.
• EBITDA of £19.5m for the first half, up 10.4% on a like-for-like basis over H1 2010 and driven by a combination of revenue growth and increased productivity.
• Q2 trading in line with management expectations with revenue up 6.5% over Q2 2010 at £42.6m, representing the 6^th quarter of sustained growth, and EBITDA of £8.4m, flat over 2010.
• Continued and significant investments made across both the hire equipment fleet and infrastructure with capital spend of £10.9m in H1 2011 up £4.7m over 2010.

Operational and service highlights

• Roll out of the new operating platform to two more regions completed in the UK with further investment planned for H2 to ensure full completion by year-end 2011.
• Successful launch of HSS Outsource Cleaning, a new and innovative outsourcing service for cleaning and FM contractors, which includes the exclusive Reintec cleaning equipment range, and represents an industry-first for the cleaning sector in equipment management.
• Strong performance of HSS Training, the Group’s specialist training division which has continued to grow strongly in H1 2011 and to win market share.

Growth plans and outlook

• The Group remains focused on organic growth, particularly through its regional and key accounts and customer-centric propositions.
• No change in outlook for the full year and the Group continues to expect to report steady growth despite the combined impact of the spring holidays, the expiry of a Network Rail supply contract, lower than average cooling product revenues and challenging economic conditions.

Chris Davies, chief executive at HSS Hire comments:  

“We have delivered another quarter of sustained growth. This is an encouraging performance given the challenging economic and competitive environment and confirms our strategy of customer-centric propositions in primarily the ‘maintain and operate’ sectors.  It is also encouraging to see growth in all the UK and Ireland regions.

“EBITDA has been maintained whilst making significant investments in the logistic network and transitioning to a 24 hour maintenance operation, reducing cycle times and supporting higher utilisation. This additional investment will continue in H2 2011 to enable the full network transformation to be completed - positioning the business for further efficiency gains in 2012″

“This quarter we also launched HSS Outsource Cleaning, a completely new time/money saving proposition for cleaning and FM contractors.  It takes our business into a significant equipment sector where rental penetration is less than 5%.

“Our priority remains generating a strong revenue and cash performance through growing our business and continuing to focus on customers, colleagues, cash and costs.

Notes to editors:

HSS Hire Service Group is a UK-based tool and equipment hire chain that has been serving big businesses, trade and DIY customers since 1957. It was the Hire Association Europe’s and Contract Journal’s Plant Hire Company of the Year 2009 and in 2010 was awarded the HAE’s ‘Excellence in Customer Care’ award and highly commended by the European Rental Association. HSS again won the HAE’s ‘Excellence in Customer Care’ award in 2011 and is the European Rental Company of the Year 2011.

Operating under the banner of HSS Hire, the group has an established nationwide network of over 250 locations including a number of supercentres with extended opening hours. The company also runs a dedicated training division and offers a range of innovative hire related services including HSS LiveHire, HSS Outsource and HSS Pitstop.

HSS Hire is ISO9000, ISO14001, OHSAS18001 and SAFE-Hire certified and holds Investors in People status as well as a 4 star British Safety Award.

For more information visit <www.hsshiregroup.com/the-business>
 

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