Manchester-based HSS Hire Group plc removed financial guidance as it moves ahead with its strategy to separate its two main businesses.
Its shares fell 2.5% on the London Stock Exchange.
The company legally separated its ProService and Operations units in 2022, but said it is now moving forward to separate the management and trading operations of each, in order to “pursue different but complementary growth objectives to maximise shareholder value”.
ProService is the company’s digital marketplace connecting buyers and sellers of building products and services, while Operations is its tool hire business.
Steve Ashmore, Chief Executive Officer, said: “This will enable each business to pursue complementary growth strategies under independent leadership teams with greater control over resources and investment decisions.”
“As a result of the new Group structure and the period of transition that this will involve, the Board believes it is prudent to remove guidance until further notice.”
The company said it will remove guidance for the foreseeable future and reinstate guidance and provide visibility of revised expectations “at the earliest opportunity”.
HSS, which provides tool and equipment hire and related services in the UK and Ireland, said revenue rose 3.2% to £170.8 million in the first half of the year, despite what it called a “challenging macro-environment” with demand softer in some markets due to the mild winter and cooler summer. It said growth came primarily from rehire of third-party rental fleet and increased resale contracts.
Adjusted EBITDA fell to £26.9 million from £28.9 million a year ago, which the company said was due to revenue mix, seasonal product performance and higher technology costs as it invests in long-term growth.
“The warmer winter and cooler early summer weather conditions have led to significantly lower demand for seasonal products,” the company said. “Non-seasonal product performance, while resilient, saw subdued demand driven by low levels of end-user construction activity, particularly in housing and commercial sectors, and wetter Q2 weather also having an impact on enquiry levels.”
Looking forward, it said “We are somewhat encouraged by lead macroeconomic indicators for UK construction beginning to trend in a positive direction. Both our businesses are positively positioned to capitalise on improving markets and we shortly expect to mobilise on a number of large accounts won over the summer.”