Q1 17 Trading Update

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[{"type":"text","content":"\n \nRNS Number : 0672G HSS Hire Group PLC 24 May 2017  \n\n24 May 2017\nHSS Hire Group plc\nQ1 17 Trading Update \nQ1 in line with management expectations; encouraging early signs from sales initiatives in Q2\nHSS Hire Group plc (\"HSS\" or the \"Group\") announces an update on the performance of the Group for the 13 week period ended 1 April 2017.\nIn line with its reporting obligations to holders of its Senior Secured Notes, the Group's wholly-owned subsidiary Hero Acquisitions Limited has today provided an update to noteholders on its performance for the same period. Details for the results call for Hero Acquisitions Limited can be found at the end of this announcement.\n\n\n\n\nFinancial Headlines\n(Unaudited)\n\n\nQ1 171 \n(13 weeks)\n\n\nQ1 16\n(14 weeks)\n\n\nChange\n\n\n\n\nRevenue\n\n\n£80.2m\n\n\n£84.3m\n\n\n(4.9%)\n\n\n\n\nAdjusted EBITA2\n\n\n(£4.5m)\n\n\n£4.9m\n\n\n(£9.4m)\n\n\n\n\nAdjusted EBITA margin\n\n\n(5.6%)\n\n\n5.8%\n\n\n(11.4pp)\n\n\n\n\nNet debt\n\n\n£226.3m\n\n\n£234.0m\n\n\n£7.7m\n\n\n\n\n \n1)     Reflects one less trading week in Q1 17 and the closure of 55 branches through Q4 16 and Q1 17 \n2)     Adjusted EBITA defined as Operating profit with amortisation and exceptional costs added back\nHeadlines\n\n\n\n\n·      Q1 performance in line with Management's expectations\n\n\n\n\n·      Underlying revenue flat year on year; Continued growth in Services\n\n\n\n\n·      Revenue flat on comparable 13 week basis after impact of branch closures\n·      Double digit growth in both Services and Key Accounts\n\n\n\n\n·      Adjusted EBITA impacted by revenue mix and temporary parallel running costs \n\n\n\n\n·      Margins reflect higher growth from lower contribution Services business in Q1 17 \n·      Parallel running costs incurred through Q1 17 will reduce now operating model changes complete\n\n\n\n\n·      Net debt reduced year on year and in line with expectations\n\n\n\n\n·      Net debt reduced to £226.3m from £234.0m (Q1 16) \n·      Continued improvement in working capital management\n·   ...

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