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HSS losses widen as new initiatives get under way

The group formed a three-point plan for growth following a recent strategic review
April 6, 2018

Equipment hire group HSS Hire (HSS) has been working to put its house in order, restructuring its operating model to boost efficiency, exiting onerous leases and taking impairments on property plant and equipment; a process given added impetus by a wide-ranging review, launched with the arrival of chief executive Steve Ashmore in June last year.

IC TIP: Sell at 31p

With the review complete, the group has settled on reducing leverage, fixing the tool hire business and strengthening the commercial proposition. The review proposed initiatives to save the group £10m-£14m a year, and management is looking at customer segmentation and changes to pricing to drive growth.

Analysts at Numis are forecasting an adjusted pre-tax loss of £1.2m, making a loss per share of 0.58p in 2018 (2017: -£15.7m, -7.4p).

HSS HIRE (HSS)   
ORD PRICE:31pMARKET VALUE:£53m
TOUCH:30-31p12-MONTH HIGH:69pLOW: 20p
DIVIDEND YIELD:NILPE RATIO:NA
NET ASSET VALUE:43p*NET DEBT:£233m
Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20132272.60.3nil
2014285-8.5-8.6nil
2015312-13.8-9.91.1
2016342-17.4-11.20.6
2017336-85.2-47.0nil
% change-2---
Ex-div:na   
Payment:na   
*Includes intangible assets of £173m, or 101p a share.