HSS Hire Group to sell ABird Limited and APEX Generators Limited for £23.25 million

LONDON, UK: HSS Hire Group has entered into an unconditional agreement to sell ABird Limited and APEX Generators Limited, the Group’s power solution providers, to CES Global for an enterprise value of £23.25 million. The cash proceeds from the disposal will further strengthen the Group’s balance sheet, a company announcement on London Stock Exchange noted.

Following the disposal, net debt on a non-IFRS16, pro-forma basis as at 30 December 2023 will reduce to approximately £37 million. The combination of a stronger balance sheet and a more streamlined business will enable greater focus on the Group’s transformational strategy to become a leading marketplace for equipment services through a technology-driven, lower-cost operating model.

As part of this transaction, HSS has entered into a commercial agreement with CES for the cross-hire of power generators and related services to ensure the broadest possible distribution of, and customer access to, both parties’ existing fleets.

This follows the successful implementation of similar commercial agreements following the disposal of the Group’s Aerial Work Platform business to Nationwide Platforms Limited in 2019 and heating, ventilation and air-conditioning business to Cross Rental Services in 2021.

ABird Limited and APEX Generators Limited represented £34 million of Group revenues and £6 million of Group operating profit for the year ended 31 December 2022. Around £20 million of this revenue was through the Group’s marketplace business which will continue to be provided under the commercial agreement.

HSS Hire Group confirms that trading for 2023 was in line with market expectations with year-on-year revenue growth of 5%.

Whilst we have continued to see some demand softness in certain customer segments, implementation of the Group’s marketplace proposition is progressing well with self-service platform adoption accelerating with around 650 customers now having transacted on the platform.

The Board remain confident that this transformational strategy positions the Group well to take full advantage of the market when it recovers. HSS will report 2023 full year results during May 2024.

Steve Ashmore, Chief Executive, commented: “Over the past three years, HSS has undergone a radical transformation, evolving to become a modern, agile marketplace business. Today’s announcement will increase our focus on driving our strategy forward and delivering value for all our stakeholders.

ABird Limited and APEX Generators Limited has made an important contribution to the Group and I would like to thank the team for their commitment over the years. I am very pleased that they will be joining CES, who recognise the business’s value and will help it reach its full potential. HSS will continue to work with Power to provide our UK customers with all of their power solution hire requirements.”

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