Higher revenues and lower losses for HSS
UK rental company HSS has reported its full year results for 2018, showing higher revenues and a sharp reduction in pre-tax losses.
Total revenues for the year were £352.5 million, up five percent on 2017, revenue for ongoing operations, which one assume is simply without UK Platforms which was acquired by Loxam/Nationwide Platforms in January – were £322.8 million up 6.2 percent on the year. This suggests that UK Platform revenues were £29.7 million. Utilisation in HSS’ Specialist division was 72.7 percent. The company managed to reduce its pre-tax loss from £85.2 million in 2017 to £a loss of £4.5 million last year.
Chief executive Steve Ashmore said: “In 2018 we made significant progress against our strategic priorities and delivered the highest Adjusted Total EBITDA in the group’s history. Over the year we made a series of important strategic and operational changes including the seamless transition to a new distribution model which significantly reduces costs, the successful refinancing of the group giving us long term stability, and the sale of UK Platforms, allowing us to focus on the Tool Hire business and further reduce debt.”
Alongside these changes we have maintained trading momentum with good underlying revenue growth. Our increased focus on improving profitability has also proved successful with margins enhanced across both our Rental and Services segments combined with a material reduction in our cost base. We are now focused on transforming our proposition to take advantage of the fragmented and digitally immature equipment hire market. This will include creating an end-to-end digital offering in our Tool Hire business and transforming OneCall to ensure a seamless rehire experience. While the broader economic outlook remains uncertain, our leaner operating model, excellent market positions and clear strategy leave us well placed to continue to grow market share in any market.”
There is not a lot to say here, the results are certainly encouraging but the company has some way to go and we understand that UK Platforms contributed a decent amount of the profits. It will be interesting to see how the company progresses with tool hire only, and how the supply agreement with Nationwide works out.