HSS Hire Group LON:HSS has reported a solid performance despite a challenging trading environment and the operational disruption associated with the separation of its business into two distinct divisions — ProService and The Hire Service Company (THSC) — completed on 1 October 2024.
The restructuring marks a decisive shift in strategy for the equipment services group, positioning HSS as a digitally focused, asset-light marketplace operator while divesting traditional hire operations.
Group revenue for the 15 months to 31 March 2025 rose to £379 million from £312.4m in 2023, reflecting the extended reporting period. On a last twelve months (LTM) basis, however, revenue fell 5.2 per cent to £298.2m, reflecting the loss of the Amey contract in mid-2024 and subdued market conditions.
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Underlying EBITDA fell to £50.5m, with margins narrowing to 13.3 per cent from 17.4 per cent a year earlier. On an LTM basis, EBITDA declined 26.7 per cent, and EBITA dropped 80 per cent to £3.9 million, as higher costs, weaker gross margins and the effects of restructuring weighed on profitability.
HSS Hire records pre-tax loss of £130m
The company recorded a pre-tax loss of £130.3m, including a £113.5m impairment against THSC, reflecting a reduced outlook for the hire business following its geographic downsizing and the weaker trading backdrop.
Net debt (including leases) was reduced by £14 million to £97.6m, supported by £30.1m in proceeds from the sale of the Power division and HSS Hire Ireland. The group remained within banking covenant levels, with IFRS16 leverage at 2.3 times and interest cover at 4.5 times.
The separation of THSC and ProService represents what chairman Alan Peterson described as “strong strategic progress” in reshaping the group. THSC — formerly HSS Operations — has been rebranded and restructured, closing several depots and shifting focus toward small plant and mechanical and electrical (M&E) equipment. A review of strategic options for THSC is underway amid continuing weakness in the UK construction and infrastructure markets.
ProService emerges as core growth platform
ProService, meanwhile, has emerged as the group’s core growth platform. The technology-led division operates what HSS describes as Europe’s leading digital marketplace for building services, with more than 3,200 customers using the platform and a target of reaching 7,000 over the medium term.
In a move that cements HSS’s pivot to an asset-light model, the group has announced a long-term commercial agreement with Speedy Hire plc alongside the conditional sale of THSC to funds advised by Endless LLP. The deal, expected to close by the end of 2025, will transform HSS into a full-service digital marketplace, focusing on connecting suppliers and customers across equipment and building services.
Peterson said the transaction would enable HSS to focus capital and management resources on its higher-margin, cash-generative platform business. “This transformational deal will deliver material added value for shareholders and customers as we focus on building an asset-light, full-service marketplace growing at pace,” he said.
Outlook for HSS Group
While the group continues to face a subdued UK market and the lingering impact of the Amey contract loss, management expects ProService to deliver sustainable growth supported by its scalable digital model and long-term industry partnerships.
Following the separation and forthcoming sale of THSC, HSS will emerge as a streamlined, technology-led operator — a significant shift for a company once rooted in traditional equipment hire.
Whether the transformation delivers lasting value, however, will depend on how quickly HSS can turn its digital ambitions into dependable returns.
