HSS Hire Group PLC on Wednesday reported a decline in annual profit, due to higher costs, though it noted that 2023’s result still was its second best since its London listing in 2015.

HSS Hire also announced its chief financial officer will depart in September.

The Manchester, England-based company provides tool and equipment hire and related services in the UK and Ireland.

It reported £11.8 million in pretax profit in the year that ended December 30, down 38% from £18.9 million in calendar 2022.

Revenue improved by 4.9% to £349.1 million from £332.8 million, but costs outpaced this rise, as HSS Hire said it invested £5.1 million in additional operating expenses and £1.3 million in one-time technology capital spending to support future growth.

HSS Hire declared a final dividend of 0.38p, bringing the full year total for 2023 to 0.56p, up 3.7% from 0.54p in 2022.

Since the start of the new year, annual revenue growth was 3% in the first quarter of 2024, driven by HSS Hire’s ProService division. Its other division is Operations.

HSS Hire said it is confident that 2024 earnings before interest, tax and amortisation will be in line with market expectations. Adjusted Ebita was £24.3 million in 2023, down 24% from £32.0 million in 2024.

CFO Paul Quested will leave the company on September 1 after eight years in post. The company is recruiting a successor.

HSS Hire shares were up 4.8% to 8.65 pence on Wednesday morning in London.

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