HSS Hire sees revenue beat market views and enters into new financing facilities
By Joe Hoppe
HSS Hire Group PLC said on Wednesday that it expects its annual profits to slightly exceed market expectations.
The company said its performance since first half results remains strong and now expects earnings before interest, taxes, depreciation and amortization to be slightly above market expectations.
The company did not provide a figure, but a forecast by two analysts and taken from FactSet puts EBITDA for the full year at 70.7million pounds ($ 95.8million), up from 69.4million. pounds a year ago.
The tool and equipment rental company said it has entered into a new £ 70million term loan facility and a £ 25million revolving credit facility.
In the year ended December 26, interest expense on the company’s senior financial facility was £ 16.3 million. Along with a changed operating model and a stake in late 2020, the new refinancing will significantly reduce current annual interest charges to around £ 3.0million, the company said.
The facilities will be provided by HSBC Bank PLC and National Westminster Bank PLC and will mature in November 2025.
Shares at 08:20 GMT were up 1.2 pence, or 6.8%, to 18.9 pence.
Write to Joe Hoppe at joseph.hoppe@wsj.com