06.09.2011

Ashtead ups its forecasts

Ashtead, owner of Sunbelt in the USA and A-Plant in the UK saw revenues rise 12 percent to £268.6 million in its first quarter to the end of July, with pre-tax profits up 236 percent to £33.1 million.

Sunbelt revenues climbed over 21 percent to $361.1 million while operating profits jumped 166 percent to $73.9 million. The company’s fleet is nine percent larger than it was a year ago and physical utilisation still grew from 65 percent last year to 68 percent this year.

A-Plant revenues improved over 16 percent to £46.1 million while operating income grew marginally from £2 million in 2010 to £2.3 million this year. The fleet grew by just over seven percent, while physical utilisation slipped from 69 percent in 2010 to 68 percent this year.

Overall capital expenditure more than tripled to £156 million grow,, or £140 million after allowing for used equipment sales from the fleet. The average age of the fleet at the end of the period was 44 months, although for aerial lifts it was 45 months for Sunbelt and 43 months for A-Plant. The company says that it is planning to spend £325 million on new equipment this year, most of it in the first second and fourth quarters.

Chief executive Geoff Drabble said: "Our end construction markets continue to behave in line with our expectations and now appear to be broadly flattening after two years of significant decline. Against this backdrop, the 21 percent rental revenue and 67 percent profit growth achieved at Sunbelt show that we are clearly benefitting from the on-going structural change in the US rental market. Sunbelt has also now delivered 15 consecutive months of year on year rental revenue growth. These structural trends are likely to continue with further increases in rental penetration and Sunbelt's market share expected.”

“Together with our on-going improvement in both yield and operational efficiency, these trends resulted in a very strong quarter. August's US rental revenues continued this pattern with growth of 25 percent. As a result, the board now anticipates a full year result substantially ahead of its previous expectations."