HSS Hire sees sales jump as tool rental service weathers tough winter

Tool rental firm HSS Hire increased its sales in the first five months of its financial year despite the impact of the mild winter on its seasonal product line.

The London-listed group saw revenue growth of four per cent compared to the first five months of its current year, with bosses confirming they anticipate its full year adjusted EBITA “to be in line with market expectations”.

In May HSS Hire recommended a final dividend full-year of 56p, an increase of four per cent.

This was despite pre-tax profit falling £7.1m to £11.8m – although the figure marked the second highest in the company’s listed history.

In a trading update published ahead of the firm’s annual general meeting later today, the company behind the business said: “The group has continued to make strategic progress with both the HSS ProService and HSS Operations business plans and delivered solid financial performance for the first five months of FY24 with revenue growth of four per cent compared to the same prior year period despite the impact of the mild winter on seasonal product performance.

“While remaining mindful of the macro-environment including the impact of the upcoming election and after assuming normal levels of seasonal product performance, HSS anticipates full year adjusted EBITA to be in line with market expectations.”

The AIM-listed group, which floated in 2015, has been hit by soaring inflation and has cautioned it is still looking to manage costs amid ongoing macroeconomic uncertainty.

The group’s marketplace growth strategy includes expanding its self-service platform. Some 1,000 customers have transacted using the service, with 30 per cent average revenue growth.

It has also expanded its low-cost builder’s merchant network, with the number of locations increasing from 63 to 89.