HSS Hire Group plc Reaffirms Earnings Guidance for the Second Half of 2017; Provides Impairment Guidance for the First Half of 2018 and Cash Flow Guidance for the Full Year 2018
In the first half of 2018, the testing and repair of all fast-moving products will be completed closer to HSS's customers, using the group's skilled colleagues across the company's network of distribution centres and branches. This change will mean far better levels of utilisation and efficiency for the group, with improved availability for customers as more products will be available for hire in branches. As part of these changes, the group will recognise a provision for exceptional costs of approximately £40 million, including an impairment of related assets of £7 million. This is expected to give rise to a net cash outflow of £2 million to £3 million in 2018, followed by net cash inflows of £7 million -£8 million annually over the following seven years.