Sale of Power Generator Businesses

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n\n\nCertain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement\n \n7 March 2024\nHSS Hire Group Plc\nSale of Power Generator Businesses\n \nHSS Hire Group Plc (\"HSS\" or \"the Group\") announces that it has entered into an unconditional agreement to sell ABird Limited and APEX Generators Limited (together, \"Power\"), the Group's power solution providers, to CES Global (\"CES\") for an enterprise value of £23.25 million (the \"Disposal\"), subject to customary transaction adjustments. The cash proceeds from the Disposal will further strengthen the Group's balance sheet.\nFollowing the Disposal, net debt on a non-IFRS16, pro-forma basis as at 30 December 2023 will reduce to approximately £37 million. The combination of a stronger balance sheet and a more streamlined business will enable greater focus on the Group's transformational strategy to become a leading marketplace for equipment services through a technology-driven, lower-cost operating model.\nAs part of this transaction, HSS has entered into a commercial agreement with CES for the cross-hire of power generators and related services to ensure the broadest possible distribution of, and customer access to, both parties' existing fleets. This follows the successful implementation of similar commercial agreements following the disposal of the Group's Aerial Work Platform business to Nationwide Platforms Limited in 2019 and heating, ventilation and air-conditioning business to Cross Rental Services in 2021.\nPower represented £34 million of Group revenues and £6 million of Group operating profit for the year ended 31 December 2022. Around £20 million of this revenue was through the Group's marketplace business which will continue to be provided under the commercial agreement.\nHSS confirms that trading for 2023 was in line with market expectations with year-on-year revenue growth of 5%. Whilst we have continued to see some demand softness in certain customer segments, implementation of the Group's marketplace proposition is progressing well with self-service platform adoption accelerating with around 650 customers now having transacted on the platform. The Board remain confident that this transformational strategy positions the Grou...

More updates from Proservice Building Services Marketplace Plc