10.10.2009

HSS agrees new banking facility

HSS Hire, one of the UK’s largest tool and equipment rental companies, has agreed a new banking facility that, it says, will allow it to pursue future growth plans.

HSS has also reported that it has achieved an operating profit of £43 million in 2008 and that it has maintained its profitability levels through the first half of 2009.

Chief executive, Chris Davies said: “At a time when many major UK companies are struggling, it is gratifying to retain our position and see our efforts to diversify and develop recognised, and supported positively with solid financial backing. This agreement allows us to concentrate on running the business, and to focus on our product portfolio and customers’ needs.”

“We are totally committed to maintaining a strong presence in our
current markets and I am confident that our plans will enable HSS to
weather market conditions and achieve continued successes.”

“HSS has opened 12 new stores in the last 12 months including a series of both new branches and SuperCentres, all of which are trading to plan. In May, HSS launched Livehire, an industry leading online facility for major customers that provides real-time hire information – a product which is set to revolutionise the way in which the hire tool industry works.”

Vertikal Comment

HSS has been a privately held company held through a chain of companies since its acquisition by Hero Acquisitions in 2007 and so a full set of accounts is not published openly. However HSS Hire had revenues in 2008 of £166 million, with pre tax profits of £8.5 million.

Given its ownership by a chain of holding companies it is hard to see a clear picture of its overall financial position. However agreeing a new banking facility at this point in the economic cycle will certainly place the company in a strong position to benefit from the opportunities that are sure to emerge over the next 12 months,

Although the company tends to stick to equipment that can be transported by 3.5 tonne trucks or trailers it is third largest powered access company in the UK and Ireland, with a fleet of over 3,000 units and one of the largest alloy scaffold tower rental suppliers as well as a major force in the supply of lifting tackle.