Q3 17 Trading Update

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[{"type":"text","content":"\n \nRNS Number : 7666X HSS Hire Group PLC 29 November 2017  \n\n29 November 2017\n \nHSS Hire Group plc\nQ3 17 Trading Update\nQ3 results for the 13 week period ended 30 September 2017\nHSS Hire Group plc (\"HSS\" or the \"Group\"), today announces an update on the performance of the Group for the 13 week period ended 30 September 2017.\nIn line with its reporting obligations to holders of its Senior Secure Notes, the Group's wholly owned subsidiary Hero Acquisitions Limited has today provided an update to noteholders on its performance for the 39 week period ended 30 September 2017. Details for the results call for Hero Acquisitions can be found at the end of this announcement.\n \nDecisive actions return Group to profitability\n \nTrading and Operational Highlights\n·      Q3 17 Profits ahead of H1, in line with management expectations\no  Underlying rental revenue improved; flat in Q3 17 on comparable 13 week basis (H1 was -3%)\no  Continued strength in Services business with revenue +12% and contribution +23% vs Q3 16\no  Cost saving initiatives fully implemented, on track to deliver annualised cost savings of £13m \n \n·      Operations delivering planned improvements\no  Consistently high fulfilment levels and improving availability\no  Asset utilisation in Q3 of 55% in Core and 76% in Specialist business\no  Improved capital efficiency resulting in capex reduction of £4m - £6m year on year\n \n·      Net debt £8m lower than prior year, headroom in excess of £33m\no  Net external debt reduced to £232.0m at end of Q3 17 (Q3 16: £240.4m) \no  Facility and cash headroom in excess of £33m (Q3 16 below £15m)\no  Completed disposal of non-core cleaning equipment rental and maintenance business in Q4 17   \n \n\n\n\n\nFinancial Highlights - Q3\n\n\n \nQ3 17 \n(13 weeks)\n\n\nQ3 16\n(13 weeks)\nRestated3\n\n\n \n \nChange\n\n\n\n\nRevenue\n\n\n£89.6m\n\n\n£89.8m\n\n\n(0.2%)\n\n\n\n\nAdjusted EBITDA1\n\n\n£17.9m\n\n\n£20.3m\n\n\n(£2.4m)\n\n\n\n\nAdjusted EBITA2\n\n\n£6.6m\n\n\n£8.2m\n\n\n(£1.6m)\n\n\n\n\nAdjusted EBITA margin\n\n\n7.4%\n\n\n9.1%\n\n\n(1.7pp)\n\n\n\n\n \n \nCurrent Trading and Outlook\n·      October was...

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