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(Sharecast News) - Equipment rental services business HSS Hire Group warned on Monday that annual revenue and earnings had fallen as it focussed on cost-cutting efforts amid a "challenging market backdrop".
HSS Hire said it had delivered "a resilient top-line performance" in the FY24, with like-for-like, excluding its power business, down 2% on year-on-year at 333.0m.
Gross margins declined by 180bps to 45.2%, reflecting a change in sales mix with more rehire business, combined with a reduced contribution from seasonal products.
HSS said it had made "strong progress" on executing its transformation programme in FY24, in reorganising its activities around two more focused businesses. As a result, operating costs increased by 3% year-on-year.
It also noted that the reduction in gross profits, together with the net increase in costs over the prior year, had resulted in underlying earnings of roughly 48.5m in FY24.
As of 0955 GMT, HSS shares were down 4.53% at 5.83p.
Reporting by Iain Gilbert at Sharecast.com
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