HSS Hire Group announces first half-year 2014 results
‘Strong growth continues across all regions, customer groups and product categories’
HSS Hire Group (“HSS” or “the Group”) today announced financial results for the 26 weeks ended 28 June 2014.
First half financial highlights
• Turnover increased by 33% to £130.6 million (2013: £98.4m)
– Driven primarily by 19% organic growth
– Supplemented by 13% increase from the specialist acquisitions of UK Platforms, Apex and TecServ
• EBITDA increased by 34% to £28.9 million* (2013: £21.6m)
Second quarter financial highlights
• Turnover increased by 36% to £67.7 million (2013: £49.8m)
• EBITDA increased by 35% to £15.3 million* (2013: £11.3m)
• Acquisition of specialist generator hire business, Apex Generators, completed
• Revenue underpinned by strong organic growth supplemented by the specialist acquisitions of Apex (acquired March 2014); TecServ (acquired November 2013); UK Platforms (acquired June 2013).
Chris Davies, Chief Executive Officer at HSS Hire Group said:
“The Group has achieved a strong first half performance, with our long-term strategy continuing to drive revenue and EBITDA growth. In all customer groups, regions and product categories we have achieved organic growth – supplemented by positive contributions from our specialist acquisitions. We continue to invest in our business with an unswerving focus on customer needs.
“The Group is performing well and on track to deliver against management expectations for the full year.”
First half trading and operational highlights
• Revenue underpinned by strong organic growth, supplemented by the specialist acquisitions of Apex (acquired March 2014); TecServ (acquired November 2013); UK Platforms (acquired June 2013).
• Branch network further strengthened with the addition of eight new HSS local format branches providing local trades with a range of kit for collection and next day delivery from HSS’s national hire fleet. These branches are trading in line with expectations.
• The long-term investments in the branch network, fleet and strategic acquisitions continue to deliver profitable growth.
• Expansion of UK Platforms, the specialist powered access provider acquired in June 2013, into Scotland.
• Expansion of Powered Access and Power Solutions into Ireland.
• Continued strategic investment in hire fleet of £38.8m in H1 2014 (2013: £14.1m), responding to strong customer demand observed during the end of 2013 and through H1 2014.
• Partnership established with Unipart Group to optimise engineering services capabilities and further improve logistics operations.
Conference call
A conference call for Senior Secured Notes investors will be held at 13:00hrs BST on Wednesday 10 September 2014. Investors or analysts who are not yet registered for this call can register to receive dial in details at: /investors-section-landing/.
Further information
For further information please visit: www.hsshiregroup.com. Download HSS’s full H1 2014 Report at www.hsshiregroup.com/financial-results. If you would like to be added to our distribution list for announcements relating to the Senior Secured Notes, please email: hss@fairvuepartners.com.
Further enquiries
Media enquiries:
Fiona McFadden, Head of PR, Founded
fiona.mcfadden@founded.com +44 (0)7786 736 706
Investor enquiries:
Robert Halls, Group Finance Strategy & Investor Relations Manager, HSS Hire rhalls@hss.com
+44 (0) 7792 153 525
Esther Yang, Fairvue Partners hss@fairvuepartners.com +44 (0) 207 614 2900
ENDS
Notes to Editor
* EBITDA adjusted to remove certain exceptional costs.
HSS Hire Group provides tools, equipment and related services in the UK and Ireland through a nationwide network of over 250 locations. HSS was acquired by Exponent Private Equity in October 2012. For more information please see www.hsshiregroup.com.
HSS completes acquisition of Apex Generators
On March 31, 2014, HSS acquired the Scottish generator hire company, Apex Generators Ltd, to strengthen the Group’s existing specialist power division – which includes the ABird business – enabling service to a wider geographical area and greater ability to fulfill national power solutions contracts. In 2013 Apex had a turnover of c. £3.7m and EBITDA of c. £1.5m.
Acquisitions made by the Group during 2013:
• Specialist powered access provider, UK Platforms
• Visual signboard company, MTS Ireland
• Cleaning equipment technical services provider, TecServ
Branch opening programme
• HSS Hire Group’s branch network was expanded during H1 with eight new “local format branches”.
Cautionary statement
The information contained in this release does not constitute investment, legal, accounting, regulatory, taxation or other advice and the information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the information. Investors and prospective investors in the securities of any issuer within the HSS Group should make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities. Any decision to purchase securities of the HSS Group or any issuer within the HSS Group should be made solely on the basis of your own evaluation of the merits, risks and suitability of such investment based on the information you have, including publicly available information about the HSS Group and its affiliates, without relying on the HSS Group or any other person or on this release.
The inclusion of financial information in this release or any related document should not be regarded as a representation or warranty by the HSS Group or any issuer within the HSS Group or any of their respective affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information’s portrayal of the financial condition or results of operations by the HSS Group or any issuer within the HSS Group and should not be relied upon when making an investment decision. Certain statements in this announcement are forward looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.
The HSS Group nor any issuer within the HSS Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement.