Manchester’s HSS grows revenue 21% to £303m

Shares of Manchester-based tool and equipment rental firm HSS Hire Group plc rose 6% on Thursday after it published results for the 53 week period ended January 1, 2022, showing revenue grew 21.3% to £303.3 million and the firm made profit before tax of £6.1 million compared to a loss £29.6 million in the prior year.

On current trading and outlook, HSS said revenue has grown 13% in Q1 of 202.

The company said capex investment in 2022 is expected to increase to between £35 million and £40 million “to support the accelerated delivery of our technology roadmap.”

HSS CEO Steve Ashmore said: “2021 was a year of significant progress for HSS with successful implementation of a number of transformational strategic projects.

“Trading returned to pre-pandemic levels, our EBITA margin almost doubled, and we delivered strong operating profit while significantly strengthening our balance sheet.

“This performance is testament to the effectiveness of our new, technology-led, capital light, low-cost operating model which provides us with the agility and flexibility to adapt and respond to changing market conditions.

In 2022 our focus will be to further invest in and enhance our digital capabilities, and we have a clear technology roadmap ahead of us which will be largely implemented by the end of the year.

“This technology provides an unparalleled, easy-to-use service, further differentiating us in the market and will be a key enabler of our continued profitable growth.

“Supporting this growth is our new structure based around two complementary divisions: HSS ProService and HSS Operations.

“By simplifying the business with one division wholly focused on sales and the other on service, we have further improved our efficiency and effectiveness.

We have started 2022 well, carrying over the momentum achieved in 2021.

“We will continue to build on this and position ourselves as the most technologically advanced company with the most comprehensive customer offering in the sector.”