Revenue grew 9.2% on a like-for-like basis over the same period of 2010. These results are ahead of market performance and the group continues to build on the strong performance in 2010. The new national logistic and maintenance programme incorporating full national 24-hour operation commenced roll out to plan and HSS Outsource Cleaning launched.
Financial highlights
- Revenue of £89.5m for the first half, ahead 9.2% over H1 2010 on a like-for-like basis.
- EBITDA of £19.5m for the first half, up 10.4% on a like-for-like basis over H1 2010 and driven by a combination of revenue growth and increased productivity.
- Q2 trading in line with management expectations with revenue up 6.5% over Q2 2010 at £42.6m, representing the 6th quarter of sustained growth, and EBITDA of £8.4m, flat over 2010.
- Continued and significant investments made across both the hire equipment fleet and infrastructure with capital spend of £10.9m in H1 2011 up £4.7m over 2010.
- Roll out of the new operating platform to two more regions completed in the UK with further investment planned for H2 to ensure full completion by year-end 2011.
- Successful launch of HSS Outsource Cleaning, a new and innovative outsourcing service for cleaning and FM contractors, which includes the exclusive Reintec cleaning equipment range, and represents an industry-first for the cleaning sector in equipment management.
- Strong performance of HSS Training, the Group’s specialist training division which has continued to grow strongly in H1 2011 and to win market share.
- The Group remains focused on organic growth, particularly through its regional and key accounts and customer-centric propositions.
- No change in outlook for the full year and the Group continues to expect to report steady growth despite the combined impact of the spring holidays, the expiry of a Network Rail supply contract, lower than average cooling product revenues and challenging economic conditions.
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"EBITDA has been maintained whilst making significant investments in the logistic network and transitioning to a 24 hour maintenance operation, reducing cycle times and supporting higher utilisation. This additional investment will continue in H2 2011 to enable the full network transformation to be completed - positioning the business for further efficiency gains in 2012.
"This quarter we also launched HSS Outsource Cleaning, a completely new time/money saving proposition for cleaning and FM contractors. It takes our business into a significant equipment sector where rental penetration is less than 5%.
"Our priority remains generating a strong revenue and cash performance through growing our business and continuing to focus on customers, colleagues, cash and costs."
