Trading and Strategy Progress Update

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n \nRNS Number : 7885E HSS Hire Group PLC 14 February 2018  \n\n \n14 February 2018\n \nHSS Hire Group plc \n \nHSS reaffirms guidance and updates on strategy progress\n \n \nHSS Hire Group plc (\"HSS\" or the \"Group\") issues the following update ahead of the publication of its full year results for the 52 weeks ending 30 December 2017 on 5 April 2018. \n \nTrading\n \nSince HSS last updated the market on 29th November 2017, trading has been positive with the Group maintaining solid momentum. The Board is pleased to reaffirm that full year performance is in line with guidance given in August, of H2 adjusted EBITA of between £8m and £11m. \n \nRevolving Credit Facility\n \nHSS also announces that it has successfully agreed with its lenders to extend the £80m revolving credit facility (RCF), which will now mature in July 2019. Management continues to make good progress towards refinancing the Group and expects to complete this during 2018. \n \nStrategic Review Progress Update - Network changes\n \nIn the Strategic Review announced in December last year, management outlined initiatives to reduce costs by £10m-£14m annually, of which £7m-£10m related to changes in the supply chain model. We are pleased to announce that agreement has been reached with Unipart, who operate the Group's National Distribution and Engineering Centre, to make changes to our supply chain enabling the realisation of cost benefits at the higher end of this range.\n \nIn the first half of 2018, the testing and repair of all fast-moving products will be completed closer to HSS's customers, using the Group's skilled colleagues across our network of distribution centres and branches. This change will mean far better levels of utilisation and efficiency for the Group, with improved availability for customers as more products will be available for hire in branches.  As part of these changes, the Group will recognise a provision for exceptional costs of approximately £40m, including an impairment of related assets of £7m. This is expected to give rise to a net cash outflow of £2-3m in 2018, followed by net cash inflows of £7-£8m annually over the following seven years.\n \n \nSteve Ashmore, Chief Executive Officer of HSS Hire Group plc said:\n\"We continue to make good progress in im...

More updates from Proservice Building Services Marketplace Plc