HSS Hire makes “big strides” in marketplace strategy

Photo: HSS Hire

HSS Hire has said it is making “big strides” in implementing its strategy to make its ProService marketplace platform the leading marketplace for building services in the UK.

The company, which launched the digital platform in 2022, said it now accounts for 24% of Group transactions alongside its website, up from 14% last year.

In 2023 the company expanded the platform with the addition of non-rental products and in the areas of equipment sales and building materials, while in December it launched its 2.0 version.

Steve Ashmore, CEO, HSS Hire, said the company will roll the updated platform out to more customers this year; “I believe that our self-service technology really differentiates us from the competition. It provides customers with a marketplace platform to access a wide range of building products and services, offering a single point of ordering and control.

“Results from the trials undertaken in FY23 show strong levels of interest from our customers, with the potential for improved loyalty as they get used to the convenience of a single, easy-to-use platform.

“We expect to see self-service rates increase markedly in FY24, creating the opportunity to significantly reduce the cost-to-serve thereafter.”

Group chairman Alan Peterson added, “The Board and management team are pleased with the strategic progress the Group has made during FY23 and believe both divisions, ProService and Operations, are well placed going forward.

“ProService has developed a technology platform helping it to become what we believe is the leading marketplace for building services in the UK, aggregating buyers and sellers across a broad range of products and services.”

Meanwhile, the company has announced £349 million in revenues for the 2023 financial year, a 5% increase on 2022.

Adjusted EBITDA was down 9% to £65.1 million on 2022, while profit before tax was down 43% to £11.9 million.

It said CapEx is expected to be around the £26 to £29 million mark for 2024, including £3 million that will be used to support its marketplace strategy. 

Looking ahead, HSS said it is monitoring an “unprecedented” uncertain and challenging macro-environment.

Elsewhere, the HSS Operations division, which is the largest supplier of equipment to ProService, generated revenues of £135 million. 

In a seperate release, the company has announced that Paul Quested, chief financial officer (CFO) will leave the company this year and resign his directorship with effect from 1 September.

The company said Quested, who joined the company in 2016 from RS Group, has played a “major part in HSS’ transformational journey and commercial success.”

Ashmore said, “On behalf of the whole HSS team, I extend our heartfelt thanks to Paul for his dedication and invaluable contribution over the past nearly eight years. I will miss his tireless efforts and good humour but he leaves with our very best wishes for him and his family.”

HSS Hire said it will name his successor “in due course,” with Quested to take part in the recruitment process and handing over of the role.