HSS sees full year performance in line with guidance
Source - SMW
HSS reaffirmed that full year performance was in line with guidance given in August, with second half fiscal year adjusted EBITA expected between £8m and £11m.
HSS highlighted progress toward efforts to reduce costs by £10m to £14m annually - £7m to £10m relates to changes in the supply chain model - as it reached an agreement with Unipart to make changes to the company's supply chain enabling the realisation of cost benefits at the higher end of this range.
The company said it expects to take a £40m hit, including an impairment of related assets of £7m, following testing and repair of all fast-moving products in the first half of 2018.
This is expected to reduce net cash by £2m to 3m in 2018, followed by net cash inflows of £7m to £8m annually over the following seven years.
HSS confirmed that it agreed with its lenders to extend the £80m revolving credit facility, which will now mature in July 2019.
Steve Ashmore, Chief Executive Officer of HSS Hire Group plc said: 'We continue to make good progress in implementing our strategy and today's announcement is a significant milestone in delivering further cost savings in our supply chain.'
'With clear implementation plans and highly engaged teams, who have responded positively to the proposed changes, we are confident in achieving savings towards the top end of our targeted range. This operational progress, combined with the extension of our bank facilities and positive Q4 performance, creates a strong platform to build upon in 2018 and beyond.'
At 8:12am: (LON:HSS) HSS Hire Grp Plc share price was +1.75p at 26p