HSS Hire Shares Take A Hammering In 35% Fall

Shares in tool and equipment hire company HSS have fallen sharply following a profit warning from the Heathrow-based firm.

Alongside its half-year results, the company warned that full-year revenue growth is likely to be in the 8 -11% range, while earnings are expected to be below expectations.

HSS boss Chris Davies said the news was "obviously disappointing".

He added: "As a result, we are cautious on the outlook for the balance of the year and now expect full-year earnings to be below current market expectations."

Despite the profit warning, group revenue for the first half of the year was up 12.1% to £146.4m, but high administrative expenses meant it reported a £14.1m loss, 12.7% worse than last year.

Administrative expenses are mainly made up of staff and property costs, and costs of acquisitions.

HSS also reported costs of £3m in adviser and broker fees in relation to its initial public offering on the FTSE 250 in February.

The company's shares have lost nearly 60% since then.