Speedy Hire HSS issues profit warning
Tool rental company HSS has issued a profit warning after experiencing issues with its branch overhaul near Oxford. The company is building a 190,000 sq ft distribution centre in a bid to streamline its equipment delivery service, however, delays have led to the completion date being pushed out from Christmas to Q1 2017, which HSS says will impact earnings and sales growth. HSS reported losses of £8.5m and £13.8m for 2014 and 2015 respectively. Speedy Hire refused a merger with HSS earlier in 2016. 

Tool rental firm HSS has warned profits will be lower than expected after problems with its branch overhaul.

The company, which has been trying to make its equipment delivery service smoother by setting up a 190,000 sq ft distribution centre near Oxford, said the improvements had taken longer than expected.

HSS hoped to have everything ready by Christmas, but now expects to fully complete the move by the first quarter of next year.

Delays: HSS now expects to fully complete the improvements by the first quarter of next year

It warned the delay would hit earnings and sales growth and slow its efficiency.

It is the latest in a string of profit warnings from HSS, which reported a tax loss totalling £13.8million in 2015 amid weaker demand and higher costs.