Earnings growth in year of investment for HSS Hire
HSS Hire, the Manchester-based, private equity-owned tool and equipment hire company, has reported strong earnings growth for 2013.
HSS, which has its HQ on Trafford Park, and operates around 250 depots nationwide, said underlying EBITDA had risen 36% to £55m in the 52 weeks to December 28 last year, as revenue increased 24% to £226m.
Since the year end the company, backed since October 2012 by private equity investor Exponent, has refinanced £200m of its debt and last month acquired Apex Generators, a power generator hire firm in Scotland.
Commenting on the results, a period where the group invested in 20 new branch openings and several bolt-on acquisitions, chairman Alan Peterson said: “2013 was a strong year for HSS. The team achieved strong organic growth across all our customer groups, product ranges, geographies and services; this was complemented by our strategy to acquire promising specialist businesses whilst also reinvesting in our future growth.
“We are confident that we will continue to enhance value by achieving our target of occupying number one or two positions in our key markets. At the same time, we will continue to monitor opportunities to add further growth and value through selective acquisitions.”
Chief executive Chris Davies added: “Over the last 12 months we have continued to deliver on our targets and produce industry-leading return on assets. This strong performance is the result of our highly diversified customer base and focus on growth over the long-term – underpinned by a consistent strategy of optimising the network, driving operational efficiency, investing in people and systems and delivering added-value services.”
HSS’ 2013 acquisitions included specialist powered access business UK Platforms, Ireland-based signboard provider, MTS and cleaning equipment technical services provider TecServ.
In total there was capital expenditure of £38m, up from £26m in 2012.
Alongside its £200m issue of 6.75% senior secured notes due 2019, in February HSS secured a £60m revolving credit facility to meet its future investment and development needs.
