---

HSS Hire Group plc demonstrates strategic agility and resilient financial performance in 2023, paving the path for future growth amidst challenging market conditions.

---

HSS Hire Group plc has reported solid financial results for the 52-week period ending December 30, 2023, showcasing a 5% increase in revenue and significant strategic advancements. Despite a challenging economic environment, the company has managed to outperform market expectations, strengthened by its innovative marketplace strategy and robust balance sheet.

Financial Performance

HSS has recorded a revenue of £349.1 million, marking a 5% increase from the previous year, driven by solid trading performance and strategic operations. The company’s Adjusted EBITDA stood at £65.1 million, though it saw a decline due to increased investments aimed at future growth. Notably, the Sale of ABird and APEX, strategic divestitures completed in March 2024, helped in reducing debt and strengthening the balance sheet, recorded at a leverage of 1.2x under non-IFRS16 conditions.

Risk Factors

The company acknowledges several risk factors, including market volatility and economic uncertainties, which could potentially impact future performance. However, strategic measures such as cost management and investment in technology are in place to mitigate these risks.

CEO Steve Ashmore expressed satisfaction with the year’s performance, emphasizing strategic progress and adaptation to market changes. The management is committed to a marketplace growth strategy, focusing on customer engagement and technological innovation, which has already started yielding positive results.

Investment Highlights

HSS’s investment appeal is strengthened by its marketplace strategy, which is supported by a technology-driven approach providing both operational efficiency and cost-effectiveness. The company’s proactive risk management and strategic divestitures also enhance its investment profile.

Historical Performance Review

Over the past years, HSS has demonstrated consistent growth in revenue and strategic positioning. The shift towards a marketplace-based model and the expansion of low-cost builders merchant network highlight the company’s adaptability and forward-thinking approach.

Liquidity and Capital Resources

The company maintains a robust balance sheet with sufficient liquidity to support ongoing and future strategic initiatives. The successful divestitures have further improved financial flexibility, enabling continued investment in core areas of growth.

Dividend Policy Review

For 2023, HSS has proposed a final dividend of 0.38p per share, bringing the total annual dividend to 0.56p, a 4% increase from the previous year, reflecting confidence in the company’s stable cash flow and earnings.

Significant Events and Milestones

Key milestones for the year included the strategic sale of ABird and APEX, enhancements in the ProService marketplace, and significant advances in sustainability practices, recognized with an EcoVadis Gold Award.

Outlook and Future Projections

Looking ahead, HSS is optimistic about its growth prospects, driven by its strengthened marketplace platform and ongoing strategic investments. The management anticipates continued revenue growth and operational enhancements, aligning with market recovery expectations.

Key Takeaways for Investors

Investors should note HSS’s resilient performance amidst challenging conditions, strategic agility, and strong market positioning. The focus on technology-driven solutions and marketplace strategy are expected to drive future growth, making HSS a compelling investment consideration in the equipment hire sector.