Q3 18 Trading Update

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[{"type":"text","content":"\n \nRNS Number : 9636H HSS Hire Group PLC 21 November 2018  \n\n21 November 2018\nHSS Hire Group plc\nQ3 18 Trading Update\nQ3 results for the 13 week period ended 29 September 2018\nHSS Hire Group plc (\"HSS\" or the \"Group\"), today announces an update on the performance of the Group for the 13 week period ended 29 September 2018.\nGood operational progress and trading drive continued profitable growth\n\n\n\nFinancial Highlights - Q3\n\n\nQ3 18 \n(13 weeks)\n\n\nQ3 17\n(13 weeks)\n\n\nChange\n\n\n\n\nRevenue\n\n\n£93.6m\n\n\n£89.6m\n\n\n4.5%\n\n\n\n\nAdjusted EBITDA1\n\n\n£22.2m\n\n\n£17.9m\n\n\n24.0%\n\n\n\n\nAdjusted EBITDA margin\n\n\n23.7%\n\n\n20.0%\n\n\n3.7pp\n\n\n\n\nAdjusted EBITA2\n\n\n£10.3m\n\n\n£6.6m\n\n\n56.1%\n\n\n\n\nAdjusted EBITA margin\n\n\n11.0%\n\n\n7.4%\n\n\n3.6pp\n\n\n\n\nNet debt leverage3\n\n\n3.6x\n\n\n4.5x\n\n\n0.9x\n\n\n\n \nQ3 18 Trading and Operational Highlights\n·      Adjusted EBITDA growth of 24%\no  Rental revenue growth and benefit from cost initiatives improved margins by 3.7pp to 23.7%\n \n·      Revenue growth of 4.5% driven by improved availability, sales initiatives and the strength of our seasonal product range\no  Underlying 4 revenue growth of 6.5%\no  Rental revenue increased +1.5% and contribution +3.8% \no  Underlying 4 core rental revenue growth of 3.7%\no  Continued strength in Services business with revenue +12.1% and contribution +24.0% \n \n·      Supply chain model changes providing greater efficiency and product availability across the Group\no  Continued strong asset utilisation 5 in Q3 18, with Core at 54.6% and 75% in our Specialist businesses \no  Q3 18 benefiting from already implemented strategic cost initiatives, on track to realise c.£14m of annual savings\n \n·      Significant reduction in net debt leverage\no  Net debt leverage reduced to 3.6x (Q3 17: 4.5x) as a result of strategic actions taken to improve profitability and working capital management\no  Further leverage reduction expected upon completion of the disposal of UK Platforms \no  Facility and cash headroom in excess of £43m (Q3 17 in excess of £33m)\n \n Current Trading and Outlook\n·      Tra...

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