HSS sells generator and lighting businesses to US giant
Listed Manchester-based equipment hire company HSS has sold two of its divisions to an American business best known for providing generators to festivals, film sets, military and construction sites.
ABird Limited and APEX Generators Limited, which trade as HSS’s power solution offering have been valued £23.25 million and the cash proceeds will reduce HSS’s debt levels to approximately £37 million.
In a statement to the stock market this morning Steve Ashmore, chief executive, said a stronger balance sheet and a more streamlined business will enable greater focus on the Group’s transformational strategy to become a leading marketplace for equipment services through a technology-driven, lower-cost operating model.
As part of the deal HSS has agreed with CES to cross-hire power generators and related services.
HSS has done similar commercial deals after selling the Aerial Work Platform to Nationwide Platforms in 2019 and the heating, ventilation and air-conditioning business to Cross Rental Services in 2021.
“Over the past three years, HSS has undergone a radical transformation, evolving to become a modern, agile marketplace business. Today’s announcement will increase our focus on driving our strategy forward and delivering value for all our stakeholders.
“Power has made an important contribution to the Group and I would like to thank the team for their commitment over the years. I am very pleased that they will be joining CES, who recognise the business’s value and will help it reach its full potential. HSS will continue to work with Power to provide our UK customers with all of their power solution hire requirements.”
Power represented £34 million of HSS overall revenues and £6 million of group operating profits for the year ended 31 December 2022.
Around £20 million of this revenue was through the group’s marketplace business which will continue to be provided under the commercial agreement.
HSS also confirmed that trading for 2023 has been in line with market expectations with year-on-year revenue growth of 5% but admitted “some demand softness in certain customer segments”.
HSS will report 2023 full year results during May 2024.
In September HSS announced that while sales had risen 6.3% in the 26 weeks to July 1, 2023, to £170.1m, pre-tax profits of £5.5m were down from the previous year’s £6.5m level.
