Standstill for sales throws a spanner in the works at HSS
PATIENCE in HSS Hire appeared to be wearing thin today as shares in the toolhire group shed nearly 5%.
After being tapped up for £13 million to fend off pressure from an over-running upgrade plan, news that firstquarter revenue was expected to be flat appeared to be the final straw for some shareholders.
HSS, known for its blue-and-yellow vans, is trying to make equipment delivery smoother and quicker for DIY and big building clients through a new, 190,000-square-foot central distribution centre near Oxford.
Boss John Gill said the company remained at the start of its journey but there were “encouraging initial signs” that its new strategy was gaining traction in key markets like London. HSS expects the benefits of the transformation to show in its second half.
Sales rose 9.6% to £342.4 million in 2016, while profits were stable at £5.8 million. That wasn’t enough to reassure nervy investors and the shares dropped 3.3p to 63.4p.
The blue-chip FTSE 100 index edged up 12.94 points to 7334.76 points, helped by upbeat services figures and gains for commodities stocks.
Miner Antofagasta was the top riser, adding 22p to reach 862p, while BHP Billiton was in second place with a 32p rise to 1287.5p. The latter earlier declared force majeure for coal deliveries from some of its Australian mines after a cyclone damaged railway lines.
Oil giant Shell leapt 35p at 2227p after DCC said it would buy its liquefied petroleum gas business in Hong Kong and Macau. DCC, which does everything from distribute oil to waste management, named Donal Murphy as new chief executive, sending its shares near a record high, 120p to 7140p.
Small-cap explorer Premier Oil rose 3p at 63.6p having agreed the sale of its Pakistan business to Al-Haj Energy for $65.6 million (£52.7 million).
Inve stors in Hollywood Bowl deemed its latest trading update, showing a near-8% rise in revenue, a strike and sent the shares 4.75p higher to 170.1p. Broker Investec noted that strong cash generation could mean shareholder returns at the end of the year.
On AIM, Firestone Diamonds shone brightly, with a 4.25p rise to 49p, after its discovery of a whopping 110-carat, light yellow diamond.
@clarehutch