17.02.2011

HSS up 19%

UK based rental company HSS has reported a strong improvement for 2010 with fourth quarter revenues up 19 percent.

The company, which is closely held has not issued a full set of financial statements, but says that full year revenues were £171 million up 15 percent on 2009. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) climbed 33 percent to £39.1 million.

The improving trend continued to gain momentum throughout the year with fourth quarter revenues growing by 19 percent to £44.5 million with an EBITDA of £9.4 million up 48 percent on the same period in 2009.

Chief executive Chris Davies said: “I am delighted with our progress in 2010. We achieved double digit revenue growth in every quarter in a very tough market. Our strategy has customer service at its core and we work hard to attract, retain and develop quality colleagues to deliver it while maintaining strong financial control. I want to thank all our colleagues for their hard work and commitment.”

“HSS Training expanded by over 50 percent during the year, through the acquisition of Hydrex Training and rapid organic growth. It also gained the first endorsement from the Facilities Management Association (FMA) and the largest market share from the Prefabricated Access Suppliers‟ Association (PASMA) during the period.”

“We have focused on keeping costs low without compromising customer service. Equally as important, especially in such a difficult economic environment, is keeping cash flow strong. This has been achieved by improved gross cash flows enabling an increase in capital expenditure over the prior year, ensuring the hire fleet is fully invested in line with current trading volumes. As a result we generated trading cash flows ahead £3m on the prior year at £18m.”

“Our growth in key accounts has been significant in 2010 in our target sectors of FM, airports, retail and utilities. Our strategy throughout has been to focus on the highly demanding maintain and operate segment rather than ground up construction. We remain a very focused business concentrating on stable parts of the market that afford better growth prospects in these difficult times.”

“2011 will continue to present us with challenging conditions. Our model, based around a customer service philosophy. We will invest further through our innovative technical apprenticeship scheme and fast track young leader’s programme. We will also continue to invest in our fleet and logistics network giving customers even more availability and support.”
We have started 2011 solidly and will retain our total focus on customers, colleagues, costs and cash in the year ahead.”

Chairman Archie Norman added: “The HSS team under Chris Davies’ strong leadership has delivered another year of change and growth despite very challenging market conditions. This demonstrates that our model of focus on customer service built around a unique network of large branches and fully integrated logistics is capable of delivering real competitive advantage and better results for customers.”