Placing to raise £13.0m

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n \nRNS Number : 5792S HSS Hire Group PLC 22 December 2016  \n\nTHIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THE ANNOUNCEMENT.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n22 December 2016\nHSS Hire Group plc\nPlacing to raise £13.0m\nHSS Hire Group plc (\"HSS\" or \"the Group\"), a leading provider of tool and equipment hire and related services in the UK and Ireland, announces that it has conditionally placed 15,445,238 new ordinary shares in the capital of HSS (the \"New Ordinary Shares\") at a placing price of 83.875p per New Ordinary Share with certain existing institutional shareholders to raise approximately £13.0 million before expenses (the \"Placing\").\nBackground to and reasons for the Placing\nAs set out in the nine month trading update announced on 24 November 2016, the Group continued to increase its market share over the first nine months of the year with revenue growing by 11% overall (2% in Rental and related revenue and 67% in Services). Adjusted EBITA grew by 6% to £14.6 million with EBITA margin improving to 5.7% versus 4.5% in the first half of the year. The outlook for the financial year ending 31 December 2016 is unchanged from that set out in the nine month trading update.\nThe trading update also noted that the Group's operational change programme had been extended into Q1 2017 and that this had impacted the Group's core rental business and related revenue growth. This programme, and in particular the introduction of the new National Distribution and Engineering Centre, is transforming operational practices across the Group and will deliver both significantly enhanced customer service levels and greater operational efficiencies when complete. The scale and complexity of the programme (including £12.5 million of previously announced one-off costs for the nine month period ended 1 October 2016)...

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