Strategy/Company/Ops Update

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n \n \n \n RNS Number : 4516N\n HSS Hire Group PLC\n 30 September 2021\n  \n \n \n  \n Certain 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  \n \n HSS Hire Group Plc\n \n \n Sale of All Seasons Hire Limited\n \n \n  \n \n HSS announces that it has entered into an unconditional agreement to sell All Seasons Hire Limited (\"ASH\"), the Group's heating, ventilation and air-conditioning (\"HVAC\") hire solution provider, to Cross Rental Services (\"CRS\") for a cash consideration of £55million (the \"Disposal\"). The proceeds from the Disposal will principally be used to accelerate the repayment of debt.\n Following the Disposal, leverage will significantly decrease to around 1.0x on a non-IFRS16, LTM1 pro-forma basis as at 3 July 2021 (FY 2020: 2.6x), materially strengthening the Group's balance sheet and marking the completion of one of the Board's three strategic goals: to Delever the Group. This balance sheet strength is expected to enable the Group to refinance its current facilities on attractive terms, supporting improved free cash flow generation.\n The Board believe that the Disposal represents an attractive valuation for shareholders. Furthermore, as part of this transaction, HSS has entered into a commercial agreement with CRS for the cross-hire of HVAC equipment and services to ensure the broadest possible distribution of, and customer access to, both parties existing fleets. This follows the successful implementation of a similar commercial agreement following the disposal of the Group's Aerial Work Platform business to Nationwide Platforms Limited in 2019.\n  \n ASH represented £18m of Group revenues and £6m of Group operating profit for the year ended 26 December 2020.\n \n  \n \n Steve Ashmore, Chief Executive, commented:\n \"Over the last four years HSS has undergone a radical transformation to become a modern, agile, digitally-driven business. During this time, we have continued to deliver against the strategic goals we set out in 2017 - to Delever the Group, Transform the Tool Hire business, and Strengthen our Commercial proposition - and today's announcement marks the completion of one of these goals. With leverage at around 1.0x post this dis...

More updates from Proservice Building Services Marketplace Plc