24 May 2017

HSS Hire Group plc

Q1 17 Trading Update

Q1 in line with management expectations; encouraging early signs from sales initiatives in Q2

HSS Hire Group plc ("HSS" or the "Group") announces an update on the performance of the Group for the 13 week period ended 1 April 2017.

In line with its reporting obligations to holders of its Senior Secured Notes, the Group's wholly-owned subsidiary Hero Acquisitions Limited has today provided an update to noteholders on its performance for the same period. Details for the results call for Hero Acquisitions Limited can be found at the end of this announcement.

1)     Reflects one less trading week in Q1 17 and the closure of 55 branches through Q4 16 and Q1 17

2)     Adjusted EBITA defined as Operating profit with amortisation and exceptional costs added back

Headlines

Current Trading and Outlook

Alan Peterson, Chairman of HSS Hire said:

"Our Q1 performance is in line with management expectations as set out at the FY16 results in early April, with revenue flat year-on-year on a comparable 13 week basis and EBITA impacted by growth in our Services business and temporary parallel running costs.  

"We are now firmly focused on re-establishing revenue growth by leveraging our new operating model to deliver market-leading availability to our customers in our branch and Customer Distribution Centre network. During March we implemented new sales initiatives, focused on core markets, to reinvigorate revenue growth in our core Rental business, particularly among our smaller and medium-sized customers. Whilst we are still in the initial phases, we have seen some encouraging signs in the markets in the early weeks of the second quarter. 

"We remain focused on driving efficiency across our network and increasing cash generation through the business. This is reflected in the cost initiatives announced today.

"We are also pleased to have announced the appointment of Steve Ashmore as the Group's Chief Executive Officer, with Steve joining us on 1 June 2017. Steve brings considerable leadership experience in a range of industries complementary to HSS including building products supply, logistics and distribution, which will be invaluable as we target the continued profitable growth of the Group."

HSS Hire Group plc will announce its interim results for the 26 week period ended 1 July 2017 on 30 August 2017.

Update call for Hero Acquisitions Limited for holders of Senior Secured Notes

As required by the reporting obligations for the Senior Secured Notes, a conference call discussing the results of Hero Acquisitions Limited (a wholly owned subsidiary of HSS Hire Group plc) will be held for noteholders at 1400 BST today.

To obtain dial-in details for the call, holders should contact Citigate Dewe Rogerson at ellen.wilton@citigatedr.co.uk. The accompanying presentation for the call will be made available at www.hsshiregroup.com/investor-relations/senior-secured-notes.

For further information, please contact:

Note to editors

HSS Hire Group plc provides tool and equipment hire and related services in the UK and Ireland through a nationwide network of over 280 locations. Focusing primarily on the maintain and operate segments of the market, over 90% of its revenues come from business customers. HSS is listed on the Main Market of the London Stock Exchange. For more information please see www.hsshiregroup.com.