04.07.2017

Steady progress at HSS

HSS has issued a trading update for the 13 weeks to the end of June with revenues slightly up on the same period last year, while planned cost savings are, it says, ahead of its original guidance.

The company has also announced that it is cutting back on its planned capital expenditure for the year, due to efficiency gains translating into improved equipment availability. It now expects to invest between £36 and £38 million – four to six million lower than originally planned.

Chairman Alan Peterson said: “Our clear focus during the second quarter has been on translating our market leading fleet availability into sales growth within our rental business. We are therefore pleased to see underlying core hire sales momentum building month by month across the quarter as initiatives targeting smaller and medium sized customers have begun to have an impact.”

“In parallel, the operating model is also delivering the planned benefits of greater capital efficiency, which is reducing our investment requirement, and higher cost savings through operational efficiency. We are encouraged by these initial signs that our operating model is delivering the benefits we expected.”

The new chief executive Steve Ashmore added: “Having only joined the group towards the end of the quarter, I have spent the last few weeks familiarising myself with its operations and meeting the team. While this process is ongoing, it is already clear to me that we have a fundamentally strong business with the building blocks in place to deliver improved customer experience and shareholder returns. I look forward to updating shareholders further at the interim results in August.”