Ashtead revenues rocket

Rental revenues for the first nine months of the year have increased significantly for UK company Ashtead Group.

A total of £2.62 billion (€2.94 billion) was recorded for the nine months ending on 31 January, 2018, resulting in a year-on-year rise of 21%. The company’s group revenues were £2.82 billion (€3.16 billion), up 20%.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for Ashtead was £1.34 billion (€1.50 billion), up 20%. This represents a margin of 48% for the nine months – the same result as the year before.

The group’s US business, Sunbelt, saw a nine-month, year-on-year rental revenues rise of 20%, to US$2.94 billion (€2.38 billion), while its EBITDA for the period rose 18% to US$1.57 billion (€1.27 billion). Sunbelt’s EBITDA margin remained at 50% for the nine months, as it did a year earlier for the same period.

In the UK, A-Plant’s rental revenues were up 17% year-on-year, to £354 million (€397.25 million), and its EBITDA increased 16%, to £129 million (€144.76 million). Its EBITDA margin was 36%, similar to last year’s margin of 37%.

Geoff Drabble, CEO, Ashtead Group, said, “The Group continues to perform well and delivered another strong quarter with reported rental revenue increasing 21% for the nine months and underlying pre-tax profit increasing by 24% at constant currency to £742 million (€832.65 million).

“Our end markets remain strong and a wide range of metrics have shown consistent improvement. We continue to execute well on our strategy through a combination of organic growth and bolt-on acquisitions, investing £859 million (€963.94 million) by way of capital expenditure and £315 million (€353.48 million) on bolt-on acquisitions in the period.”

Drabble added that he expected capital expenditure for the year to be towards the upper end of £1.2 billion (€1.35 billion). He said that, looking forward to 2018/19, the company expected a similar level of capital expenditure to this year as it continued its strategic plan through to 2021.

Resignation

Ashtead Group has also announced that its finance director Suzanne Wood, who has been in the role since July 2012, will step down affective 31 March this year. The company said she notified Ashtead of her intention to spend more time in the US.

Stepping into Wood’s shoes will be Michael Pratt, who has served as deputy finance director and group treasurer since 2012. He joined the company in 2003.

Drabble said, “Suzanne has worked tirelessly on the Group’s behalf over the last 14 years first as CFO of Sunbelt Rentals and more recently as group finance director and the financial strength of Ashtead and its sound debt structure are tributes to those efforts. On behalf of the board I would like to thank Suzanne for all her hard work.

“I would like to congratulate Michael on his well-deserved promotion to group finance director and look forward to continuing to work with him on successfully delivering the group’s strategy.”