HSS revenues decline amid “challenging market conditions”

Image: HSS Hire Group

HSS Hire Group has reported a 2% decline in like-for-like revenues for the 12-month period ending 30 December 2024, with the company citing challenging market conditions and a shift in sales mix.

Revenues for the period were £333 million, excluding the Power business sold in March 2024, while its gross margin also fell also fell from 47.0% to 45.2% due to an increased share of rehire business and lower seasonal product sales.

As part of its restructuring efforts that it announced last year, HSS Hire implemented a new group structure, splitting its operations into two standalone businesses: HSS ProService (“Pro”) and HSS The Hire Service Company.

The company said the reorganisation aimed to provide a clearer strategic focus for each unit, with separate leadership teams now overseeing their respective growth initiatives.

In line with these changes, HSS Hire said it also undertook a cost rationalisation programme in the fourth quarter, which included the closure of 10 operating sites.

It said the decision was driven by both market conditions and a broader strategy to optimise the company’s network and improve asset utilisation in key customer areas.

Despite the restructuring, operating costs increased by 3% year-on-year, contributing to a decline in profitability. Underlying EBITDA for the period was approximately £48.5 million, while underlying EBITA stood at £10 million.

Steve Ashmore, executive chair, HSS ProService and director, HSS Hire Group plc said, “Whilst market conditions remained challenging in the second half of 2024, following the well-executed restructuring and streamlining of our core operations, HSS is now better positioned to deliver sustainable growth as market conditions improve.

“We are excited for the Group’s future, with re-invigorated leadership teams better equipped to develop their respective businesses from solid and sustainable foundations. We look forward to updating shareholders on the progress and opportunities of ProService and THSC in due course.”