HSS rental Shares soared on Wednesday after the tool and equipment rental company improved its 2021 profit forecast as trading continues to improve.
Based on its performance in the second quarter, the group now expects earnings before interest, taxes, depreciation and amortization for 2021 to be “slightly ahead” of market expectations, while earnings before interest, taxes and depreciation will be “significantly ahead”.
HSS said second quarter EBITDA and EBITA remained ahead of comparable FY19 levels, with its “digitally driven lower cost operating model delivering further margin expansion.”
As trading continues to improve from year-end 2020 results, underlying second quarter revenue was 102% of FY19 levels.
Managing Director Steve Ashmore said: “Our strong operating result, above 2019 levels, is a testament to the effectiveness of our digital strategy. Our on-board technology platforms combined with our partnership with construction traders have allowed us to maintain national coverage while significantly reducing fixed costs and improving margins.
“Supported by very good cash flow, we plan to reach our 2021 net debt leverage target of less than twice six months ahead of schedule. This strong performance has reinforced our confidence in our digital-centric model as we continue to strengthen our differentiated business proposition. and capitalize on the market opportunities that lie ahead. “
At 0825 BST, stocks were up 13.8% to 21.40p.