25.04.2014

Strong year for HSS

UK rental company HSS has reported a strong increase in revenues and an improving profitability for 2013.

Total revenues for the 12 months to the end of December were £226 million, up 24 percent on 2012, while pre-tax profits jumped from a £17 million loss in 2012 to a £300,000 profit in 2013. Much of the increase comes from acquisitions, including the mid-year purchase of UK Platforms from Haulotte. Like for like organic growth appears to have been just over 10 percent.

The company also added 20 new locations during the year, mostly through the acquisition process. Capital expenditure increased from £26 million in 2012 to £38 million last year.

In February HSS raised £200 million in 6.75 percent senior secured notes maturing in August 2019, the proceeds were used to pay down existing facilities and some of its shareholder loans. The company also secured a £60 million Revolving Credit Facility to provide liquidity for future investment and development needs.

The financial statement also mentioned the fact that the company is fitting all of its Haulotte boom lifts with the manufacturer’s Activ Shield Bar anti-entrapment/secondary guarding device.

Chairman Alan Peterson said: “2013 was a strong year for HSS. The team achieved strong organic growth across all our customer groups, product ranges, geographies and services; this was complemented by our strategy to acquire promising specialist businesses whilst also reinvesting in our future growth. We are confident that we will continue to enhance value by achieving our target of occupying number one or two positions in our key markets. At the same time, we will continue to monitor opportunities to add further growth and value through selective acquisitions.”

Chief executive Chris Davies added: “I am pleased with the financial performance during 2013. Over the last 12 months we have continued to deliver on our targets and produce industry-leading return on assets. This strong performance is the result of our highly diversified customer base and focus on growth over the long-term - underpinned by a consistent strategy of optimising the network, driving operational efficiency, investing in people and systems and delivering added-value services.”

Vertikal Comment

HSS appears to be ‘on a roll’ at the moment, as it bounces back into profit, thanks to significantly lower interest costs and higher revenues. The company will be looking to benefit from the changes and management disruption at its main competitor Speedy, as it looks to ‘seize the moment’ as demand picks up and competitors are perhaps not as fully focused as they might be.

Timing is everything as they say.