28.09.2004

A-Plant's Utilisation continues to grow

Ashtead Group plc,parent company of Sunbelt in the USA and A-Plant in the UK the announced has announced its first quarter results for fiscal 2004/2005 While group revenues dipped by two percent, due to disposals in the UK, fleet utilization improved and operating profits rose by 44 percent.

In the UK A-Plant saw revenues five percent lower at £39 million, but utilization rates climbed from 61 to 66 percent. On a like for like basis sales rose by 1.9 percent on a fleet that was six percent smaller. Operating costs fell by over 10 percent. These factors helped push the operating profits after depreciation from one million to £ three million.

In the USA Sunbelt saw dollar revenues rise by almost 12 percent to $160.2m. This reflected an increase of approximately five percent in rental rates together with growth in average utilisation rates from 66 percent in the first quarter of 2003/4 to 70 percent this year. Ashtead claim that Sunbelt’s growth reflected market share gains as well as the continued improvement in non-residential construction activity,

Ashtead’s chief executive, George Burnett, commented:

“The Group performed strongly in the quarter reflecting improving markets and increased market share in the US and the beneficial impact of refocusing our business in the UK.

Current trading conditions remain favourable in both our main markets and, whilst the weakness of the US dollar and any further interest rate rises may have an adverse impact, the Board looks forward to reporting further progress.”