Profits up 51% at Ashtead Group
By Murray Pollok04 March 2014
Ashtead Group pre-tax profits rose by 51% to £293 million for the first nine months of the year, to 31 January, on revenues that were 23% up at £1.25 billion.
Both A-Plant in the UK and Sunbelt Rentals in the US performed well and Ashtead said its full year profits would be ahead of previous expectations.
Sunbelt rental revenues grew 22% to US$1.48 billion, driven by a 17% increase in fleet on rent and 5% improvement in yield.
A-Plant delivered a 33% increase in rental revenue to £181 million, including the acquired Eve Trakway business. Even without Eve, revenues were up 18%, reflecting 10% more fleet on rent and 7% yield improvement.
Ashtead's chief executive, Geoff Drabble, said; “Our strategy continues to be focused largely on organic growth, supplemented by a range of bolt-on acquisitions. We invested £491 million in our rental fleet and a further £85m on acquisitions during the period.
“Our markets remain strong and we anticipate growing the Group's fleet organically in the coming year in the low to mid teens percent range.”