Covid impact sees losses widen at Manchester tool hire company

HSS Hire

Pre-tax losses has widened at tool hire chain HSS Hire following a year of ‘unprecedented disruption.’

The Manchester company said the onset of the pandemic in March 2020 and the subsequent national lockdown had ‘significantly impacted’ performance as its business while customers and suppliers adapted to working in the new environment.

In the year to 26 December 2020, HSS Hire made a pre-tax loss of £23.6m, up from a loss of £5.8m in 2019.

It also shut down 134 of its 234 locations and laid off 300 employees during the year.

With Covid-19 restrictions having an impact, revenue for 2020 was down 18 per cent at £269.9m

Steve Ashmore, Chief Executive Officer, said: “HSS has delivered a resilient performance in a year of unprecedented disruption.

“The onset of the pandemic had a significant impact across our markets but decisive action to preserve cash and adapt our business supported a strong recovery in the second half of the year with EBITDA ahead of 2019 levels in the final quarter.

“During the course of the year, we took the decision to accelerate the implementation of our strategy.

“By increasing our focus on digital platforms, closing 134 of our branches, and partnering with builders merchants, we have been able to maintain national coverage while significantly reducing fixed costs.

“We are grateful for the overwhelming shareholder support for our strategy and in October successfully completed a £53m capital raise, further strengthening our balance sheet.

“This significant progress has been possible due to the hard work and dedication of our colleagues who have shown outstanding commitment during a uniquely challenging year.

“Our people are the heart of our business and our most important asset and I would like to thank them for their hard work.”

He added: “We have had an encouraging start to 2021, with EBITDA in the first quarter ahead of 2019 and 2020 levels.

“We are well positioned to capitalise on market opportunities as we continue to build on our differentiated commercial proposition to create the most advanced, customer-centric offer in the tool hire marketplace.”

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