Shares in stricken construction hire firm HSS fell yesterday as investors bailed out after another profits warning. It now expects profits of between £8million and £11million in the second half of the year which puts HSS on course for profits of as little as £700,000 for the full year after it made losses of £7.3million in the first half. The City was hoping for a haul of up to £18million this year and the warning sent shares down 11.7 per cent, or 6.5p, to 49p. HSS expects profits of between £8million and £11million in the second half of the year which puts HSS on course for profits of as little as £700,000 for the full year HSS is now worth just £83.4million having seen its value fall 77 per cent since shares listed on the stock market at 210p each in 2015. Analysts suggested the company – which hires tools and building equipment to tradesmen and DIY enthusiasts – may benefit from a merger with arch-rival Speedy Hire. Neil Wilson, senior market analyst at ETX Capital, said: 'Losses are growing too quickly. 'The conditions are challenging and investors are losing patience. So is it time to consider reviving talks for a merger with Speedy Hire? 'An opportunistic bid could work, particularly with the market cap of HSS temptingly low.' Poor first half results: HSS's turnaround plan still hasn't borne fruit HSS bosses insisted their turnaround effort was working. The listing of HSS in February 2015 netted executives a £10.5million bonanza when they sold shares. But the share price slump is likely to raise questions over the wisdom of its stock market float,. Since going public, HSS has issued three profit warnings and lost two chief executives while market expectations have been repeatedly revised downwards. HSS blamed the latest figures on brutal cost cuts – it has axed 68 underperforming branches in the last year, aiming to make annual savings of £13million. It is battling to pay off its debts, at £230.6million despite an £8.2million fall in the previous year. Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Shares in HSS have fallen by 11.7 % after investors abandoned the beleaguered tool hire firm after yet another profit loss . HSS is worth just £ 83.4 m ( $ 107 m ) , 77 % down since its shares were first listed in 2015 . The company ’s poor performance has led analysts to suggest a merger with rival firm Speedy Hire . “ We are growing too quickly . The conditions are challenging and investors are losing patience ” , said Neil Smith , senior financial analyst at GE Capital .