HSS Hire shares (LON: HSS) surged as the group revealed cost-cutting measures and plans to invest in its digital platforms.
The group, which employs 2,000 across the UK, will close 134 branches as well as axe 300 jobs.
The tool-hire group has been hit hard amid the difficult trading environments and reported a £12.5m loss for the first half of the year. Revenues plunged by 22% to £125.8m.
Since May, HSS Hire has seen a dramatic shift to online sales, which now account for 30% of sales.
“While our strategic ambitions remain unchanged, COVID-19 has demonstrated that we are now ready to accelerate our strategy by further investing in our technological platforms,” said chief executive, Steve Ashmore.
“These investments will allow us to reduce our physical footprint which, whilst regrettably resulting in the loss of around 300 roles, allows us to become a more agile, technology-driven business which is essential in our markets as well as reducing costs and enhancing shareholder value,” he added.
The group has begun redundancy consultations for the 300 jobs it will axe.