Profits Rise at Leading Logistics and Facilities Management Firm

Many companies have found times tough over the last couple of years. However, tool hire firm HSS saw its pre-tax profits rise by a third in 2010 despite the difficult market conditions. The company made a profit of £39.1 million in 2010 thanks partly to its success in growing key accounts in the facilities management and logistics sectors.

Revenues and profits up in a tough market

HSS’ revenues were also up, rising by 15 per cent in 2010 to £171 million. Key accounts, such as Thames Water and Heathrow Airport, grew 25 per cent year on year and now almost a third of the company’s total revenue.

HSS Chief executive Chris Davies said: “Our growth in key accounts has been significant in 2010 in our target sectors of facilities management, airports, retail and utilities.

“Our strategy throughout has been to focus on the highly demanding maintain and operate segment rather than ground up construction.

“We remain a very focused business concentrating on stable parts of the market that afford better growth prospects in these difficult times.”

HSS continuing to invest in logistics to drive profits

Mr Davies acknowledged that market conditions would continue to be ‘challenging’ in 2011, but said HSS would continue to invest in training apprentice and improving its fleet and logistics networks.
HSS chairman Archie Norman, added: "The HSS team under Chris Davies’ strong leadership has delivered another year of change and growth despite very challenging market conditions.
"This demonstrates that our model of focus on customer service built around a unique network of large branches and fully integrated logistics is capable of delivering real competitive advantage and better results for customers.”