HSS Hire Group posts interim loss due to one-time business expansion charges

Tool hire firm HSS Hire Group has posted a loss for the first half of the year, mainly as a result of one-time business expansion charges. The company reported a loss before tax of £9.8m ($12.8m) for the six months ended 2 July, compared to a £14.1m loss in the same period a year ago.

Revenue jumped 13.5% to £166.2m.

“I’m pleased to report strong revenue and underlying profit growth in the first half of the year reflecting the positive impacts of our revised strategy,” HSS Hire chief executive John Gill said in a statement.

“Customers are increasingly seeing HSS as a single source provider of tools, equipment and related services and our trading growth reflects this.”

HSS Hire provides tools and equipment for hire in the UK and Ireland, with over 90% of its revenue coming from business customers.

The firm said its new National Distribution and Engineering Centre, which was unveiled in March to improve kit quality and availability, remained on track for completion this year.

“The board believes we are well positioned to take advantage of, and continues to look for, opportunities to increase scale for the benefit of customers and shareholders,” Gill added.

Analysts at Edison Investment Research said the HSS Hire’s interim results were promising.

“The news today from HSS we believe to be positive, especially the accent on making the existing operations better rather than just much bigger,” they said.

“The statement today is filled with promises to simplify operations. Focus on capital efficiency and implement programmes to improve customer service.”