Tool hire giant HSS saw its shares rise yesterday after reporting first-quarter trading in line with expectations.
The company – which made its stock market debut in February – said it remains on track to open 50 new branches in the current financial year.
Revenues in its first quarter came in at £72.5m, HSS reported – up 15.3 per cent compared with £62.9m in the same period a year earlier.
Shares closed 1.2 per cent higher at 212p, slightly above the 210p that they priced at on 4 February. The stock has recovered since falling to around 190p in the weeks after the initial public offering (IPO).
Sales rose in both its specialist and core businesses, climbing by 36.1 per cent and 12.4 per cent respectively.
Operating profits – excluding tax, interest, depreciation and amortisation – rose 9.2 per cent to £15.4m.
“This performance leads us to believe that we are successfully taking market share from our competitors, both local and national,” said Chris Davies, chief executive of the company.
“In addition to customer demand-led investment in our hire fleet, we have continued to invest in our platforms for growth; opening new local branches, recruiting and training new sales colleagues, developing larger account relationships and growing specialist businesses that enhance our ability to serve our customer base.”
The firm competes with other tool hire giants such as Speedy Hire. It added yesterday that net debt has been reduced to £167.3m.