- HSS Hire Group slashed its annual losses as margins were boosted by cost cuts and higher revenues.

For 2018, pre-tax losses were narrowed to £4.5m from £85.2m and revenue increased 5% to £352.5m.

Adjusted earnings (EBITDA) rose to 45.8% to £71.3m.

Rental revenue growth of 4.1% for the year, amid a 'combination of focused sales initiatives, improved product availability and our extensive range of relevant seasonal products,' the company said.

The company did not propose a final dividend, but said it would re-evaluate this position once the net debt leverage ratio falls below 2.5x.

The company reported a material reduction in net debt leverage to 3.3x for the year from 4.8 a year earlier.

We have continued the positive momentum of 2018 into the current financial year and are trading in line with our expectations for the first quarter of 2019.

The company upgraded its medium term targets with leverage now reduced to lower than 2.5x from less than 3.0x and revenue growth from in-line to ahead of the market.

'In 2018 we made significant progress against our strategic priorities and delivered the highest Adjusted Total EBITDA in the Group's history,' said Steve Ashmore, Chief Executive Officer of HSS Hire.

'Over the year we made a series of important strategic and operational changes including the seamless transition to a new distribution model which significantly reduces costs, the successful refinancing of the Group giving us long-term stability, and the sale of UK Platforms, allowing us to focus on the Tool Hire business and further reduce debt.'

'We are now focused on transforming our proposition to take advantage of the fragmented and digitally immature equipment hire market. This will include creating an end-to-end digital offering in our Tool Hire business and transforming OneCall to ensure a seamless rehire experience.'

At 8:08am: [LON:HSS] HSS Hire Grp Plc share price was +0.4p at 35.5p

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