HSS agrees refinancing deal with banks
The group is leading a turnaround after a string of profit warnings.
Embattled tool hire firm HSS has secured a refinancing deal with its banks as it ploughs ahead with a turnaround plan.
The group, which recently revealed it sunk deeper into the red with annual losses of more than £85 million, said it had refinanced its £245 million of debt.
Paul Quested, chief financial officer at HSS, said: “We are very pleased to have successfully secured the long-term refinancing of the group.
“This now ensures that we have the appropriate facilities in place to continue delivering on our strategic priorities and the group’s full potential.”
There had been concerns over its ability to secure a deal with its banks for the refinancing, given its trading woes, which have led to a series of profit warnings since floating in 2015.
The management has since embarked on an overhaul, slashing costs and axing branches to save around £13 million a year.
It has also been leading a transformation programme to bring the test and repair of products out of its national distribution and engineering centre, and back into branches.
HSS saw its losses surge to £85.2 million in 2017, compared with a £17.4 million loss in 2016.
In April’s full-year results, it admitted 2017 was a “difficult year” but insisted its turnaround was bearing fruit, with trading in 2018 “solid”.