Manchester-based HSS Hire Group plc reported that its 2024 like-for-like revenues, excluding the Power business it sold in March 2024, were down 2% on the prior year at £333 million.

In a trading update for the 12 month period to December 30, 2024, the firm said: “Further to the change in the company’s accounting reference date and financial year end date from 31 December to 31 March, as announced on 12 November 2024, the following trading update is based on unaudited results for the calendar year to 30 December 2024.

“During this period the board implemented the new group structure, separating out HSS ProService (Pro) and HSS The Hire Service Company (THSC) as standalone businesses, as announced in September 2024. The board believes that this increasingly focused structure provides greater optionality to maximise future value for shareholders.

“The group delivered a resilient top-line performance in the period against a continued challenging market backdrop, with like-for-like revenues for the calendar year, excluding the Power business sold in March 2024, down 2% on prior year at £333m.

“Gross margin declined by 180bps from 47.0% to 45.2% reflecting a change in sales mix with more rehire business, combined with a reduced contribution from seasonal products, as previously highlighted at the half-year.

“During 2024, the company made strong progress on executing its transformation programme for the group, in reorganising its activities around two more focused businesses. The two now separated leadership teams have successfully implemented their growth strategies, respectively building management and sales capabilities for Pro and THSC.

“Pro’s attractive Self Serve marketplace platform is growing market presence, with a broad range of customers registered and a healthy pipeline of new large customers.

“THSC’s sales team has been strengthened and the business is already seeing a growing pipeline of direct customers as it continues to develop its builders merchant model.

“Additionally, cost rationalisation was accelerated during Q4 with the right-sizing of THSC; partly to better reflect market conditions with a reduction of 10 operating sites, but also informed by a strategic aim to optimise the network and improve asset utilisation, in aligning with higher density customer areas.

“As a result of these strategic actions to build a platform to deliver sustainable growth, the net increase to operating costs was 3% YoY. The reduction in gross profit together with the net increase in costs over the prior year resulted in underlying EBITDA for the 12-month period of c.£48.5m and underlying EBITA of c.£10m.”

Steve Ashmore, Executive Chair, HSS ProService and Director, HSS Hire Group plc said: “Whilst market conditions remained challenging in the second half of 2024, following the well-executed restructuring and streamlining of our core operations, HSS is now better positioned to deliver sustainable growth as market conditions improve.

“We are excited for the Group’s future, with re-invigorated leadership teams better equipped to develop their respective businesses from solid and sustainable foundations. We look forward to updating shareholders on the progress and opportunities of ProService and THSC in due course.”