Tool hire firm swings back into profit

Tool hire firm HSS has returned to profit according to its half year figures.

The Manchester company saw a 3.9% increase in revenues to £161m and opperating profit was up to £4.8m from a loss of £3m.

The company said net debt was reduced by £52.7m as a result of improved EBITDA and the use of proceeds from the sale of its UK Platforms business.

The management said it is confident that full year profit will be in line with market expectations.

Chief executive Steve Ashmore said: “I am pleased to report a solid performance for the first half of 2019 in which the continued focus on driving profitable revenue growth through strong price control and effective cost management led to a significant improvement in return on capital and a further reduction in leverage.

“As set out in April, the next phase of our strategy is focused on strengthening our commercial proposition by enhancing the digital offer in our Rental business and transforming the customer experience in our OneCall Services business.

“We are pleased with the positive reaction to the launch of our customer app, the roll-out of new driver technology and the completion of our new automated OneCall system.

“We will continue to develop our digital offering, further improving the customer experience, and build on these early positive results.

“The widely reported headwinds in the economy have affected the tool hire market but HSS is well placed to manage these more challenging conditions.

“We have taken additional action to further optimise our operating cost base and have a clear strategy to build upon our existing excellent market positions, leaving us well placed to continue to grow share in all of our markets.”