HSS HIRE GROUP PLC — Audit Report / Information 2016

Sep 1, 2016

25 August 2016

Dear Shareholder

Notice of Adoption of Financial Reporting Standard 101 ("FRS 101"): Reduced Disclosure Framework

HSS Hire Group plc's ("the Company") parent company financial statements contained in the Company's Annual Report for the year ended 26 December 2015 were prepared in accordance with UK Generally Accepted Accounting Practice ("UK GAAP"). This report can be found on the Company's website at www.hsshiregroup.com.

A new UK GAAP accounting framework introduced by the Financial Reporting Council ("FRC") became mandatorily effective for the financial statements of UK companies with accounting periods commencing on or after 1 January 2015. Under this new framework, the Company is required to elect to prepare its parent company financial statements on one of the bases permitted by the FRC. The consolidated financial statements of the Company's group will continue to be prepared in accordance with EU-adopted IFRS and are unaffected by this new accounting framework.

The Company proposes to adopt FRS 101, a reduced disclosure regime, for its parent company financial statements for the year ended 31 December 2016 and on an ongoing basis until such time as the Company notifies shareholders of any change to its chosen accounting framework for the parent company financial statements.

The Company's election to adopt FRS 101 for its parent company's financial statements does not require shareholder approval. However, as stipulated in FRS 101, the Company is required to notify all shareholders of this election. Any shareholder or shareholders holding in aggregate 5 per cent or more of the total allotted shares in the Company may serve an objection. Objections must be served in writing and delivered to the Company Secretary at HSS Hire Group plc, 25 Willow Lane, Mitcham, Surrey, CR4 4TS, United Kingdom by no later than 22 September 2016.

Yours faithfully

Patrick Hartrey Company Secretary

HSS Hire Group plc. Registered Company No. 9378067. Registered office: 25 Willow Lane, Mitcham, Surrey, CR4 4TS. HSS Hire Group plc is a listed company, registered in England & Wales.