Tools firm bid to screw down debt

HSS ASKS SHAREHOLDERS FOR £54M AID

HSS Hire is to tap shareholders for £54million to help pay down its debt.

It will mean the tools hire firm can stay within the agreed rules around money it has borrowed.

So far this year HSS has managed its debt by reducing costs and preserving liquidity. But the continuing challenges of Covid-19 mean there is a risk HSS could breach its debt agreements with creditors at the end of the year. So the board has decided it would be “prudent” to raise cash before 2020 is over.

The move is backed by major investors Toscafund Asset Management, Ravenscroft and Exponent Private Equity.

Alan Peterson, chairman of HSS, said: “This This transaction is a major vote of confidence from om three shareholders representing over 75% of the company’s shares. This capital injection will enable the group to further reduce its leverage – one of our foremost objectives – and gives us a strong platform to continue to implement change and drive growth.”

HSS said £15million of the funds will be used to pay off debt in January, and the rest will be invested in its technology and hire fleet. Earlier this month, HSS announced it would cut 300 jobs as it planned to close up to 134 of its branches across the UK.

It sai d Cov i d-19 had accel erat ed its investment in technology, which reduced the need for many of its sites to stay y open.

The firm lost £12.5million in the first half of the year as revenue dropped by

22%. But revenue is now running at around 90% of last year’s levels.