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HSS Hire Group (HSS) investor relations material
HSS Hire Group H1 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue grew 3.2% year-over-year in H1, despite seasonal weakness and demand softness in certain end markets.
Completed sale of Power business in March, using proceeds to reduce net debt and strengthen the balance sheet.
Announced full separation into HSS Pro Service and HSS Operations, with distinct management teams and strategies.
Interim dividend maintained at 18p, reflecting confidence in strategy and financial position.
Financial highlights
H1 revenue reached £170.8m, up 3.2% year-over-year, outperforming ERA's 2.7% market growth forecast.
Adjusted EBITDA was £26.9m and adjusted EBITA £7.3m, broadly in line with prior year after adjusting for seasonal effects.
Net debt (non-IFRS 16) reduced from £55.1m to £37.9m post Power business sale; leverage held at 1x.
ROCE at 14.9%, ahead of cost of capital.
Cash conversion well over 100%, with liquidity headroom of £75m.
Outlook and guidance
Guidance withdrawn for the foreseeable future due to business separation and transition period.
Market remains challenging with flat demand and no post-election bounce, but macro indicators (CPA, ERA, PMI) suggest growth into next year.
Large contracts won over summer expected to mobilize end of Q4 into the new year.
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