The HSS Hire Group Plc Board has decided to maintain the dividend at 0.18 pence per share despite the reduction in H1 2023 Earnings Per Share, demonstrating confidence in the company's strong balance sheet position.
Other financial highlights include:
Solid revenue performance in challenging markets with H1 24 revenue growth +3.2%
o HSS ProService ("ProService") marketplace business like for like growth of 3.4%, ahead of market, with double digit Services increase somewhat offset by seasonal product weakness
o HSS Operations ("Operations") maintained utilisation at 56% through efficient fleet management
Seasonal product weakness impacted H1 24 profitability
o Adjusted EBITDA and EBITA excluding this impact broadly in line with H1 23
o Targeted cost action creating operational efficiency to mitigate demand softness in certain end markets
o Continued strong returns with ROCE above the Group's cost of capital
Robust balance sheet with non-IFRS16 leverage maintained at 1.0x (H1 23: 1.0x)
o Net proceeds of £20m from sale of Power businesses used to reduce debt and further strengthen the Group balance sheet
o HSS continues to deliver consistently high returns ahead of cost of capital
o Material liquidity headroom of £75m to support ongoing strategy development
