Market Report: Investors relieved as HSS Hire leaves full-year guidance unchanged

HSS Hire, the tool hire company left full-year guidance unchanged (Getty Images)

Investors in the profit warning-prone HSS Hire were relieved when the tool hire company left full-year guidance unchanged, but the steady update failed to prevent the stock falling along with the wider market.

The shares fell 1p to 78p as it confirmed that annual revenues grew 10 per cent, having told investors to expect between 8 and 11 per cent growth.

The worst could be behind HSS, whose float last February, widely regarded as one of the worst of 2015, was closely followed by two hefty profit warnings that saw its value crash.

Brokers JPMorgan Cazenove and Numis were reassured by the update, lifting their target prices to 90p and 77p, respectively.

The share price of Lavendon, the access equipment rental specialist, has suffered over the past six months in the wake of a string of profit warnings from its rivals including HSS and Speedy Hire. But the broker Berenberg thinks the sell-off is unwarranted, citing “a differentiated model and broader end-markets” for initiating its coverage with a buy rating.

Elsewhere, the sell-off of banking stocks accelerated as the big high street lenders languished at the bottom of the blue-chip ladder. Most have fallen more than 20 per cent since the New Year, with investors concerned that another global financial crisis looms.

Traders suggested the new lows might have triggered “stop-losses”, intended to limit a loss on a stock and which activate automatic selling. Barclays was worst off today, 8.15p cheaper at 165.6p, while Asia-focused banks also took a beating, with HSBC down 18.15p at 449.45p and Standard Chartered 18.5p lower at 414.2p.

The banking slide weighed on the FTSE 100, which dropped 84.87 to 5,837.14.

Bucking the trend was Clydesdale Bank, now known as CYBG, which after a day’s delay managed to float its shares. Having been priced at 180p, the lower end of guidance, the stock jumped 12p to 192p.

Local newspaper group Johnston Press enjoyed its best day in three years, up 4.5p or 12 per cent to 41p, as it confirmed plans to cut its pension deficit by £50m.