Tool hire firm’s power up after plan to save £14m
Tool hire firm HSS was lifted higher after its new boss convinced investors he could repair its battered profits.
The firm has identified between £10m and £14m of savings to drive it to profitable growth after a strategic review under new boss Steve Ashmore.
HSS said it had seen room for improvement in its heritage tool hire division, which deals with smaller rental equipment such as power diggers and carpet cleaners, by focusing on customers, products and branches.
The company is also aiming to strengthen its commercial presence by making its business more customer-focused and incorporating sales help through live chats on its website.
It expects the move to boost margins above 20pc by 2020.
The strategy is a turning point for the firm, which has had two chief executives in two years.
In April, former boss John Gill announced that he would be leaving after HSS posted widening losses and scrapped its final dividend. He was then replaced by Ashmore in June.
HSS has seen its share price sink more than 84pc since its stock market float in 2015, amid a string of profit warnings and a botched merger with Speedy Hire. Shares rose 13.3pc, or 3.88p, to 33p.
online fashion retailer Boohoo dropped 6.2pc, or 11p, to 167.25p as spooked investors continued to sell shares.
They have plunged more than 35pc since Boohoo unveiled its half-year results in September and failed to raise its profit guidance for the year – despite upgraded forecasts on sales.
Investors were further worried by news that, in the same month, co-founder Carol Kane had sold £10.6m worth of shares.
Shares in suit maker Bagir jumped after an agreement was reached with Israeli body-measuring app Sizer.
Customers strike a pose for a picture on their smartphone cameras, and Sizer works out the measurements for a garment.
Bagir said it will use the technology to allow customers to buy a made-to-measure suit or other garment, which is cheaper than those bought from a traditional tailor. It is the latest strategic initiative by the firm which was set up 56 years ago and supplies suits to the likes of H&M.
It also comes after Aquascutum owner Shandong Ruyi took a 54pc stake in the business last month.
News of the partnership sent shares climbing 6.3pc, or 0.12p, to 2.12p.
Education publisher Pearson was among the biggest gainers on the FTSE 100, finishing up 2.2pc, or 16p, to 737p after JP Morgan raised its price target to 740p from 671p. But the gains were not enough to lift the blue-chip index, which finished down 0.4pc, or 27.28 points, at 7320.75.
Manufacturer Cobham fell 2pc, or 2.5p, to 124.1p, after Kepler Cheuvreux cut its price target to 112p from 117p, while energy firm
Centrica dropped 1.5pc, or 2.2p, to 144.8p, after UBS cut its target price to 165p from 215p.
Software firm Dillistone rose 28.7pc, or 15.5p, to 69.5p, thanks to strong take-up of its recruitment platform Gated Talent, which lets executives and recruiters share data. Also up was consultancy firm
Xafinity, which posted a 188pc increase in half-year profits and announced an acquisition.
Shares increased 7.4pc, or 12.75p, to 185.75p after it reported profits of £4.9m in the six months to the end of September and a 2pc increase in sales to £26.6m.
It said it was paying £153m for the actuarial consulting division, pensions administration arm and an investment consulting business of rival Punter Southall.