09.02.2012

HSS up 5%

UK rental company HSS has announced its results for 2011, which show full year revenues up five percent to £180.2 million. Conversely in the fourth quarter they slipped back one percent to £43.9 million.

The company is private and only publishes headline numbers, EBITDA was up two percent for the year, but down three percent in the fourth quarter.

The results reflect the loss of a large Network Rail contract and in the fourth quarter lower revenues from heating due to the mild weather. Conversely key accounts sales were up 13 percent and now represent 30 percent of revenue, despite the loss of the Network Rail contract.

HSS says that it significantly stepped up its capital expenditure in 2011, with particular focus on powered access equipment aimed at meeting customer demand from retail and FM markets. As a result HSS now claims to be the second largest provider of low-level powered access in the UK.

The company also implemented new logistics and maintenance management operating platform in order to increase customer availability, while delivering greater cost control through a move from fixed to variable costs and reducing capital expenditure need, through better utilisation levels.

Chairman Archie Norman said: “HSS has made good progress against its strategic development plan in 2011, and the business is well positioned as a trusted partner and service leader in the tools and equipment rental, outsourcing and services sector.”

Chief executive Chris Davies added: “I am pleased with the progress of the business in 2011. We achieved both revenue and profit growth against a tough market whilst implementing major change to our logistics and maintenance operation to provide increased fleet availability for our customers.”

“Key accounts have continued to be an important part of our growth in 2011 and I am delighted that, through focusing on the key customer needs, we have won significant new opportunities with a number of large national accounts in the fourth quarter, including an outsourced equipment management partnership with Enterprise Group that demonstrates innovation in our service model. We continue to benefit from excellent customer relationships in retail fit-out, facilities management and airports.”

“HSS Training has continued to grow organically – it now leads the market in PASMA and is the second largest provider of IPAF training in the UK. We have continued to invest in our training venues and facilities for our customers and have launched a fully interactive course booking website to provide customers with ease of transaction.”

“2012 will undoubtedly present us with challenging conditions – not least with the unseasonably mild winter continuing into the start of the year - but we are well positioned to keep building our business. We will continue to drive sales growth whilst focusing on improving margins. As always we will continue to concentrate on the things we know matter most to our customers whilst investing in our colleagues and managing our cash generation and costs in order to take our business forward.”