After radical surgery in 2020 and 2021, HSS managed to make a pre-tax profit 拢6.1m in 2021 on revenue up 21% to 拢303.3m (2020: 拢250.1m).
In previous years HSS had made losses of 拢23.6m (2020), 拢5.8m (2019), 拢4.5m (2018) and 拢85.2m (2017) and 拢17.4m (2016).
Chief executive Steve Ashmore joined HSS聽 in June 2017. After five years he has now delivered his first profit after reshaping the business. He closed 55 branches in his first year and another 134 in 2020, restructuring the business around larger hubs and introducing digital capability.
Until today, HSS has never posted a profit since Exponent Private Equity floated it on the London Stock Exchange in 2015, three years after buying it.
With the sale of Laois Hire Services in Ireland to Briggs Equipment for 拢9.5m in April and the HVAC business All Seasons Hire going to Cross Rental Services for 拢55m in September, 2021 also saw HSS net debt reduced from 拢120.4m to 拢45.4m.
Steve Ashmore said: "2021 was a year of significant progress for HSS with successful implementation of a number of transformational strategic projects. Trading returned to pre-pandemic levels, our EBITA margin almost doubled, and we delivered strong operating profit while significantly strengthening our balance sheet. This performance is testament to the effectiveness of our new, technology-led, capital light, low-cost operating model which provides us with the agility and flexibility to adapt and respond to changing market conditions.鈥�
He continued: 鈥淚n 2022 our focus will be to further invest in and enhance our digital capabilities, and we have a clear technology roadmap ahead of us which will be largely implemented by the end of the year. This technology provides an unparalleled, easy-to-use service, further differentiating us in the market and will be a key enabler of our continued profitable growth. Supporting this growth is our new structure based around two complementary divisions: HSS ProService and HSS Operations. By simplifying the business with one division wholly focused on sales and the other on service, we have further improved our efficiency and effectiveness.
鈥淲e have started 2022 well, carrying over the momentum achieved in 2021. We will continue to build on this and position ourselves as the most technologically advanced company with the most comprehensive customer offering in the sector."
鈥淭o summarise, the business is in great shape and, with a high performing team, leading technology, differentiated organisational structure and strong balance sheet, we have all the elements in place to begin a new chapter of sustainable growth. We have started this already and in the first quarter of 2022 revenue is 13% ahead of prior year.鈥�
Got a story? Email news@theconstructionindex.co.uk
