HSS warns on profit after efficiency plan delays

Aaron Morby 2 years ago
Share

Tool and equipment hirer HSS has warned that its group-wide streamlining plan will now not be fully completed until the first quarter of 2017.

The group this morning warned the delayed business improvement plan would impact on expected profits but said it performance would still be ahead of next year.

John Gill, chief executive officer of HSS, said: “Given the scale and complexity of this transformational operational change within the group, we have taken the decision to extend the implementation into Q1 17.

“While we are seeing some impact on performance in FY16, the board remains confident that the initiatives being pursued will position the business to drive improved shareholder returns in what remains a competitive and fragmented marketplace.

“Looking ahead to 2017 we will continue the optimisation of our network across both distribution centres and local branches to deliver the benefits of our new operating platform, delivering an enhanced customer proposition, with a primary focus to drive EBITA margin growth.”

A key part of the business plan was building a New National Distribution and Engineering Centre, which is now open and servicing all branches in England and Wales. Branches in Scotland will benefit from the NDEC by spring next year.

Gill said HSS had closed 18 underperforming branches in October and four distribution centres since the Summer.

In the first nine months of the year revenue was ahead 11%, driven mainly by it services business but also a 2% uplift in rental revenue.

Net debt has increased slightly to £240.4m, reflecting increased exceptional costs

Latest plant news

Hirer L Lynch open new plant “Super Centre”

Larger HQ will help hirer accommodate growth plans
2 weeks ago

Runaway dumper traps worker in trench

HSE warns over site vehicle maintenance after groundworks accident
1 month ago

Balfour bags £115m Network Rail tamping deal

Seven year contract to operate fleet of 13 maintenance vehicles across Anglia and South East
2 months ago

UK’s largest flat-top crane lands at Heathrow Airport

City Lifting modifies crane to up lift capacity for pre-assembled hotel modules
3 months ago

JCB launches electric mini digger

Battery powered mini will operate all day on single charge with zero emissions
3 months ago

JCB creates 600 jobs to meet boom in global demand

New jobs will be spread around Staffordshire and Derbyshire factories
3 months ago

Plantworx moves to Peterborough for 2019 show

Indoor and outdoor facilities of East of England Arena will stop show being blighted by bad weather
4 months ago

JCB starts production of hi viz dumpers

Latest range is designed to improve site safety
5 months ago

JCB boss Bamford bullish about UK economy

Digger giant boosts spending with UK suppliers by 13%
6 months ago

AGD Equipment to supply another rig to piling specialist Ivor King

Latest deal sees RTG machine added to fleet
6 months ago
AGD Equipment Ltd

Vp buys Brandon Hire for £41.6m

Major deal in the tool and equipment rental sector
7 months ago

CITB buys plant simulators to fill operator skills gap

Sixteen plant simulators will help to train next generation of operators
10 months ago

Shake-up of plant training system divides industry

Changes by CITB come under fire from contractors and training specialists
11 months ago

Plant operators get in-cab entertainment

Latest Hyundai loader boasts car-style "infotainment" system
1 year ago

JCB launches Hi-Viz dumper

Machinery giant launches new model in a bid to prevent site accidents
1 year ago

VP bullish about construction prospects after record results

Equipment rental specialist enjoys growth across all sectors
1 year ago

Countdown to largest UK plant show

More than 15,000 people set to visit Leicestershire Plantworx show in early-June
1 year ago

Worker killed by reversing telescopic handler

Tragedy on disorganised site with no segregation between vehicles and workers
1 year ago

Speedy bounces back into the black

Turnaround plan lifts plant hirer into £14m profit after £58m loss in 2016
1 year ago

Contractors keen on new site huts from Mobile Mini

Site accommodation specialist invests £1m in new fleet of Groundhog units
1 year ago

Vp swoops on specialist M&E hirer

Jackson Mechanical Services M&E tool hire arm sold for £3.6m
1 year ago

HSS racks-up £17.4m loss as closures continue

Equipment hire specialist optimistic as branch and distribution network streamlined
1 year ago

Banner Plant expands into Leicestershire

Banner Plant swoops on independent rival Premier to strengthen East Midlands offer
1 year ago

Fairfax buys 80 Hitachi 8t diggers

Selby hirer places biggest order in company's history
1 year ago

Company fined £700,000 for MEWP death fall

Washing machine giant fined after 66-year-old contractor dies during factory repair work
1 year ago

A-Plant snaps up Kier’s hoist business

Kier sheds last of plant and equipment interests
1 year ago

Mick George on the hunt for franchised drivers

Contractor looking for drivers to take on franchises at construction haulage arm
1 year ago

Loxam ups bid for Lavendon to £459m

Belgian and French giants slug it out for control of Leicester-based powered access specialist
1 year ago

Plant hirer Hewden crashed owing £240m

Unsecured creditors told there is little prospect of being paid
1 year ago

Plant hire boss jailed after platform collapse kills worker

Court hears how mobile platform boom should have been replaced rather than repaired
1 year ago

Contractor services